Economics Quiz

What does scarcity mean in economics?

• When there is too much of something.

• When there is not enough of something.

• When there is a perfect balance of resources.

• When resources are distributed equally.

What are limited resources?

• Resources that are infinite in quantity.

• Resources that are not important.

• Resources that are only available to certain people.

• Resources that are only available in a certain number.

What does "unlimited wants" refer to?

• The finite desires of people.

• The ability to obtain everything one desires.

• The never-ending amount of things people want.

• The limited number of things people need.

What is the opportunity cost when you make a choice?

• The financial cost of the choice

• The thing you wanted second most

• The time spent making the choice

• The first thing you wanted

According to the lesson, economic systems differ based on how they answer which of the following questions?

• What to produce, how to produce it, who gets what is going to be produced

• Why to produce, where to produce it, who will sell what is produced

• When to produce, who to produce for, how much to charge for what is produced

• How often to produce, what materials to use, who decides the price of what is produced

In a Command Economy, who determines what to produce, how to produce it, and who gets it?

• Corporations

• Consumers

• Government

• Market forces

What determines what to produce, how to produce it, and who gets it in a traditional economy?

• Market demand

• Government policies

• Traditions

• Corporate decisions

What type of economy does the United States have according to the image?

• Command Economy

• Mixed Economy

• Market Economy

• Traditional Economy

In a market economy, who determines what to produce, how to produce it, and who gets it?

• The government

• Producers and consumers

• Foreign investors

• Central planners

Which of the following is NOT one of the six characteristics of a market economy?

• Freedom of Choice

• Central Planning

• Private Property

• Competition