Economics Quiz

__________ is not having enough resources to satisfy all of our wants and needs.

• Surplus

• Famine

• Equilibrium

• Scarcity

"There is no such thing as a free lunch" refers to what?

• Many things in life are free.

• Consumer demand outweighs supply more often than not.

• Everything has a cost even if it was free to you.

• Supply shortages.

The following are three things that every smart business asks themselves before making a product. What are these known as?

• Three Basic Questions of Supply and Demand

• Three Basic Questions of Life

• Three Basic Questions of Money Making

• Three Basic Questions of Economics

Economists divide what's needed to produce something into four categories known as The Four Factors of Production. What are The Four Factors of Production?

• Earth, Wind, Fire, Water

• Cost-Benefit Analysis, Stock Market Trends, Cost of Production, Trade-Offs

• Land, Labor, Capital, Entrepreneurs

• Location, Climate, Time Invested, Profit Margins

When we make a decision to do something or buy something, we give up the opportunity to do or buy something else. This is known as what?

• Trade-off

• Poor decision making

• Opportunity Cost

• Demand Factor

The Law of Supply states:

• Price of a product can only increase if demand for the product increases.

• If the price increases, supply decreases; if the price decreases, supply increases.

• If price increases then supply increases; If price decreases then supply decreases.

• Producers and sellers of goods are required to adequately meet the demands of their consumer base.

In economics, market equilibrium is

• when supply and demand disagree on the price of a product.

• when supply and demand agree on the price of a product.

• when shortage equals surplus.

• when price equals cost.

When quantity supplied is greater than quantity demanded, there is a ____.

• Deficit

• Equilibrium

• Shortage

• Surplus

When quantity supplied is less than quantity demanded, there is a ____.

• Market

• Monopoly

• Surplus

• Shortage

Which of the following is an example of opportunity cost?

• In a softball game, you swing and miss the ball and strikeout.

• You choose to give up studying for a math test so you can study for a history test instead.

• You stay out late and your parents ground you.

• You run a red light and get a ticket.