Econ Basics Quiz

House: Goods or Service?

• Goods

• Service

What happens to the price of a toy when more people want to buy it than there are toys available?

• The price goes down.

• The price stays the same.

• The price goes up.

• The price changes every day.

What is a service?

• A physical item that you can touch.

• A type of food.

• An activity someone does for someone else.

• A kind of animal.

If a farmer decides to use his field to grow carrots instead of potatoes, what is the opportunity cost?

• The money he makes from selling the carrots.

• The carrots.

• The potatoes he cannot grow.

• The field.

What does demand mean in economics?

• How much of a good or service a producer wants to make.

• How much of a good or service is available.

• How much of a good or service people want to buy.

• The price of a good or service.

What is a good in economics?

• A service that is very popular.

• A physical item that is produced and can be sold.

• A type of currency.

• A beneficial economic policy.

When the supply of a product increases, what typically happens to the price?

• It increases.

• It decreases.

• It stays the same.

• It becomes unpredictable.

Why might a company decide to provide a service?

• Because it requires a large amount of physical goods.

• To meet a specific need or want of its customers.

• Services are easier to store than goods.

• Services do not require any skills to provide.

What does it mean if a good is described as "scarce"?

• There is more of the good available than people want.

• The good is available in unlimited quantities.

• There is less of the good available than people want.

• The good can only be found in certain locations.

Choosing between spending time playing video games or doing homework is an example of what economic concept?

• Supply and Demand

• Goods and Services

• Opportunity Cost

• Scarcity