Economics Quiz

What is the basic concept of supply and demand?

• How much a product costs

• The relationship between how much of a good is available and how much people want

• The amount of money a business makes

• The types of products a store sells

Which of the following is an example of a service?

• A toy car

• A haircut

• A sandwich

• A book

What does an entrepreneur do?

• Buys products from stores

• Works at a bank

• Starts and runs a new business

• Teaches in a school

What is a need?

• Something you want like video games

• Something you must have to survive, like food

• Money to buy toys

• A new bicycle

What is profit?

• The money you spend on buying something

• The money left after all costs are paid in a business

• The cost of making a product

• The price of an item in a store

Which is usually better to use for everyday purchases?

• Borrowing money

• Using cash

• Using credit

• Trading items

What does scarcity mean in economics?

• There is more than enough of something for everyone

• There is just enough of something for everyone

• There is not enough of something for everyone

• The price of something is very low

What is a surplus?

• When there is not enough of something

• When there is more of something than needed

• When the price of something is high

• When a new product is made

What happens when the demand for a product is higher than the supply?

• The price usually goes down

• The price usually goes up

• The product is given away for free

• The product is removed from the market

Why might an entrepreneur take a risk to start a business?

• To lose money

• To make a profit

• To work for someone else

• To never work again