Economics Quiz

What is scarcity in economic terms?

• The study of how people make choices because of scarcity

• The cost of the next best alternative when a choice is made

• A tangible item we buy to fill a want/need

• Condition that exists when we have limited resources but unlimited wants/needs

What is the definition of opportunity cost?

• The amount of a good or service a supplier is willing and able to sell at a specific price

• The cost of the next best alternative when a choice is made

• The point at which supply and demand meet

• Something we have done for us to fill a want/need

What is a good in economic terms?

• Something you want that is not necessary for survival

• The quantity supplied is greater than quantity demanded at a certain price

• A tangible item we buy to fill a want/need

• Good or Service (G or S) where consumption is rival- consumers can be excluded

What does the term 'public' refer to in the context of goods and services?

• G or S where consumption is rival- consumers can be excluded

• G or S that can be consumed simultaneously- consumers can’t be excluded

• The quantity demanded is greater than quantity supplied at a certain price

• The amount of a good or service a consumer is willing and able to buy at a specific price

What does the term 'Utility' refer to in economics?

• The cost of producing a good or service

• The satisfaction that a consumer receives from consuming a good or service

• The amount of labor required to produce a good

• The price at which a good is sold

What is the Law of Diminishing Marginal Utility?

• As more of a product is consumed, the consumer receives more additional satisfaction

• As less of a product is consumed, the consumer receives less additional satisfaction

• As more of a product is consumed, the consumer receives less additional satisfaction

• As more of a product is produced, the cost of production decreases

What happens according to the Law of Diminishing Marginal Returns?

• As more units of a variable resource are added to fixed resources, total output increases at an increasing rate

• As more units of a variable resource are added to fixed resources, total output remains constant

• As more units of a variable resource are added to fixed resources, total output decreases

• As more units of a variable resource are added to fixed resources, eventually additional output will decline

What does 'Productivity' measure in an economic context?

• The total output of an economy

• The output per worker

• The number of workers in an industry

• The efficiency of machines in production

What is the goal of Specialization and Division of Labor?

• To ensure that every worker can perform all tasks in production

• To allow workers to switch tasks frequently to reduce boredom

• To process dividing production into small tasks and each worker only does one or two tasks

• To increase the number of tasks a worker must perform

Which of the following best describes a 'Market Economy'?

• Government answers all questions regarding production and distribution

• Private businesses answer questions regarding what, how, and for whom to produce

• The good of the group is prioritized over individual gain

• More government control with some market influence