Economics Quiz

Scarcity arises because all societies have:

• Limited resources to satisfy unlimited wants

• Limited needs and unlimited wants

• Unlimited resources to satisfy limited wants

• Unlimited needs and limited wants

Which of the following are factors of production?

• Supply and Demand

• Consumer Preferences and Substitutions

• Labor and Capital

• Opportunity Cost and Trade offs

You want to upgrade your iPhone to the newest generation and have been saving money for several months. Your best friend tells you about a concert in Atlanta that is coming up next month. The price of the concert, transportation, hotel, and food will be the same cost as the newest iPhone. You decide to stick with your plan to buy the iPhone and miss the concert. What is the opportunity cost in this scenario?

• The price of the iPhone

• The price of the concert, transportation, hotel and food

• The price of the iPhone and the concert combined

• None of the above

Roger works at Starbucks making $13/hr. He also makes fried pies to sell out of a food truck. The ingredients cost $5 for 5 pies. It takes Roger 1 hour to make 5 pies. What is the opportunity cost of making 5 pies?

• $5

• $13

• $18

• $25

Using the graph provided, what is the opportunity cost of moving from possibility B to possibility A?

• 5 microwaves

• 10 tires

• 25 microwaves

• 30 tires

Which point on the graph would be considered inefficient?

• Point A

• Point B

• Point C

• Point D

Which point on the graph is considered unattainable?

• Point A

• Point B

• Point C

• Point D

What is this graph an example of?

• Demand Curve

• Production Possibilities Curve

• Supply Curve

• Circular Flow Model

What would be the best measurement to compare economies?

• GDP

• GDP per capita

• Unemployment rate

• Debt

Which of the following best describes the United States economy?

• Traditional - traditions and customs are used in order to exchange goods and services

• GDP

• Unemployment rate

• Debt