Basic Economics Quiz

What is the study of how people use their limited resources to satisfy their unlimited wants?

• Entrepreneurship

• Scarcity

• Economics

• Capital

What represents the willingness to risk money, time, and energy to build a successful business?

• Goods

• Services

• Entrepreneurship

• Competition

What is known as the inability to satisfy all wants at the same time due to limited resources and goods?

• Scarcity

• Choice

• Needs

• Opportunity cost

What is given up when a choice is made, known as the highest valued alternative forgone?

• Competition

• Opportunity cost

• Capital

• Resource

Which of the following is considered a need?

• Cars

• Clothing

• Television

• Jewelry

Select the best definition from the following for the term: Wants

• Items that would be nice to have, but are not necessary.

• Items that are necessary for existence. For example clothing shelter and food.

• Tasks that businesses perform or provide for customers. Such as haircuts or car washes.

• Items businesses sale that can be physically weighed or measured. For example food and phones.

If new Jordan shoes are released and the supply cannot keep up with the number of people who want to buy it, what is likely to happen to the price?

• The price will decrease because it is a new game.

• The price will increase because the demand is higher than the supply.

• The price will stay the same because it is popular.

• The price will decrease because the game is in high demand.

If the supply of a product exceeds the demand, what is likely to happen to the price of the product?

• The price will increase.

• The price will decrease.

• The price will remain unchanged.

• The product will be discontinued.

What is it called when the wants and needs of a customer dictate what products are made?

• Consumer Sovereignty

• Profit

• Production

• Incentives

What is the amount of goods or services that a consumer is willing and able to buy at a certain price?

• Capital

• Price

• Supply

• Demand