Economics Quiz

Rewards that are offered to try to get people to take certain economic actions are called:

• Incentives

• Penalties

• Taxes

• Subsidies

The wants and needs of people are restricted by _______________.

• resources

• time

• money

• laws

A clothing company manufactures 500 anniversary editions of a shirt. Since there are so few shirts to sell, what effect will this likely have on the price of the shirt?

• The price will likely decrease.

• The price will likely stay the same.

• The price will likely increase.

• The price will not be affected.

Which term refers to the government-set maximum price that can be charged for goods and services?

• Price floor

• Price ceiling

• Market price

• Equilibrium price

What is the minimum wage?

How are prices set in a competitive market?

• By government regulation

• By monopolistic control

• By supply and demand

• By random chance

When a business concentrates on goods or services that it can produce better than anyone, it is using.

• Specialization

• Diversification

• Globalization

• Standardization

What term refers to having only one business produce a product and there is no substitute good?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopsony

What are the 4 Factors of Production?

• Land, Labor, Capital, and Entrepreneurship

• Land, Labor, Money, and Management

• Land, Labor, Capital, and Technology

• Land, Labor, Resources, and Management

Explain inflation.