Economics Quiz

What is the study of economies called?

• Economics

• Sociology

• Anthropology

• Psychology

What is the basic problem that all economies face?

• Opportunity

• Demand

• Abundance

• Scarcity

What is the value of the thing given up in any choice or tradeoff called?

• Opportunity cost

• Incentive

• Demand

• Profit

What determines the price of a good or service?

• Government regulations

• Consumer preferences

• Inflation

• Supply and demand

What is the major incentive for individuals and businesses?

• Demand

• Profit

• Competition

• Savings

What are the four main factors of production?

• Goods, services, consumers, and sellers

• Scarcity, opportunity cost, choice, and tradeoff

• Natural resources, capital, labor, and entrepreneurs

• Supply, demand, profit, and incentives

What is an economic system based on private ownership, free trade, and competition called?

• Market economy

• Mixed economy

• Traditional economy

• Command economy

What are goods and services provided by the government called?

• Capital goods

• Consumer goods

• Private goods

• Public goods

What are the three levels of economic activity?

• Primary, secondary, and tertiary

• Global, national, and local

• Developed, developing, and underdeveloped

• Supply, demand, and equilibrium

What is the function of money that allows people to measure the relative costs of goods and services?

• Medium of exchange

• Unit of account

• Store of value

• Means of production