Economy Vocabulary Quiz

What is the term for the method of mass production in which the product is put together as it moves past a line of workers?

• Capitalism

• Assembly line

• Economy

• Entrepreneur

Who is considered a consumer?

• Person who starts a new business

• Person who buys or uses goods and services

• Person who specializes in one particular product

• Person who pays taxes to the government

What is opportunity cost?

• The cost of goods and services that are scarce.

• The total cost to start a new business

• The profit a business makes after paying its expenses

• The value placed on whatever is lost when a decision is made

What is scarcity?

• The amount of a good or service that is available

• The money paid to the government

• When there is not enough to fulfill consumer's wants or needs

• The method of mass production in a line of workers

What is the definition of 'stock market'?

• Share in a company

• Money paid to the government

• Organized place where stocks are bought and sold

• System for producing and distributing goods and services

What happens to prices when there is more supply than demand?

• Prices go up

• Prices go down

• Prices do not change

• Prices are determined by the government

What is one of the functions of banks?

• They provide personal training services

• They produce goods for the economy

• They safely allow people and businesses to deposit savings and earn interest

• They only offer loans to companies

What can you do with a checking account?

• Invest in stocks

• Make a deposit or withdrawal

• Save money for retirement

• Borrow books

What must you do when you borrow money from a bank?

• You must provide a service in return

• You must pay the amount back plus interest

• You must give the bank a share of your business

• You must volunteer for community service

What is sales tax?

• A tax on the total sales of a business

• A tax on income from sales

• A tax paid on many different types of goods and services

• A tax on the sale of a company