Economic Systems Quiz

What type of economic system does the United States have?

• Command economy

• Mixed economy

• Free enterprise system

• Traditional economy

Can anybody start their own business in a free enterprise system?

• Yes, anybody can start their own business

• No, only government-approved individuals can start a business

• No, only people with a certain amount of capital can start a business

• Yes, but only if they have a special license

What does the price of a good or service depend on first?

• How many people want or need it

• The amount of money a family has

• How much of the good there is for people to buy

• The time of year

What is it called when the supply is low and the demand is high?

• Surplus

• Equilibrium

• Demand

• Scarcity

What happens to the price when the supply is high and the demand is low?

• The price goes up

• The price stays the same

• The price goes down

• The price is not affected

What is a surplus?

• When the demand is higher than the supply

• When the supply of a good or service is more than the demand

• When there is not enough of something people want or need

• When the price of goods goes up

Why might a surplus be bad for producers?

• Because they can sell more goods

• Because they can make more money

• Because they might have a hard time making enough money

• Because the demand is high

What is likely to happen to the cost of bananas in Florida due to the bad weather damaging most of the crop?

• The cost will decrease because there is a surplus of bananas.

• The cost will remain the same as it is not affected by weather.

• The cost will increase because there is a scarcity of bananas.

• The cost will decrease because the demand for bananas is low.

After Easter, what is the situation with the Easter candy in the store?

• There is a scarcity of Easter candy because it is still in high demand.

• There is a surplus of Easter candy because Easter is over.

• The Easter candy will be more expensive because Easter has passed.

• The Easter candy will be removed from the store immediately after Easter.

What is expected to happen with the tickets for the concert of the famous singer in Houston?

• The tickets will be easy to get because the singer is not well-known.

• The tickets will be less expensive because the singer will only be there for one night.

• The tickets will be in surplus because everyone can go to the concert.

• The tickets will likely be in high demand because the singer will only be there for one night.