Economics Quiz

The idea that we are unable to satisfy all of our wants and needs because resources and goods are limited is known as -

• supply

• demand

• scarcity

• consumption

The economies of most countries today include which of the following characteristics?

• Government determines prices and controls all property and resources

• Individuals and businesses make decisions in private sector and government for public sector

• No government involvement in business, and the only factor in production is consumer demand

• Encouragement of monopolies by the government and discouragement of private enterprise

Competition, a driving factor in a market economy, usually results in all of the following except -

• lower prices

• better quality

• greater choice

• reduced supply

Which of the following are characteristics of the United States economy? (Check all that apply)

• Prices are determined by supply and demand.

• Competition is encouraged within the marketplace.

• Governments primarily choose what products will be made.

• All property and resources are owned and controlled by the government

• Markets are generally allowed to operate without much interference from the government.

What can manufacturers do to encourage consumers to purchase their product?

• offer incentives on the item

• increase production of that item

• reduce advertising of the product

• ensure that supply is greater than demand

Price is usually determined by the interaction of -

• expenses and profit

• supply and demand

• monetary and fiscal policy

• business and government economic flow

When consumers are willing to purchase more goods and services than what is being produced, what usually happens?

• prices increase

• prices go down

• consumers gain money

• shops and factories go out of business

Businesses most frequently participate in the economic circular flow of resources by -

• consuming products

• providing investment capital to expand

• providing public goods and services by use of tax dollars

• buying resources and making products to sell to consumers

Which economic concept is represented by the vehicle in this political cartoon?

• trade

• profit

• demand

• incentive

Jerrod opened a booth at a flea market to sell paintings. This is an example of which economic concept?

• scarcity

• capital

• corporation

• entrepreneurship