Economics Quiz

What term describes the limited nature of society's resources?

• Tradeoff

• Surplus

• Scarcity

• Equilibrium

What is the term for the value of the alternative that must be given up when a choice is made?

• Opportunity cost

• Price floor

• Surplus

• Human capital

What is the term for a situation where the quantity supplied is greater than the quantity demanded?

• Shortage

• Surplus

• Equilibrium

• Tradeoff

What is the term for the total value of all goods and services produced within a country in a given period?

• National debt

• Gross domestic product (GDP)

• Business cycle

• Proportional tax

What term describes the skills, knowledge, and experience possessed by an individual or population?

• Human capital

• Tradeoff

• Price ceiling

• Globalization

What is the term for a tax that takes a larger percentage from high-income earners than it does from low-income individuals?

• Proportional tax

• Progressive tax

• Tariff

• Price floor

What is the term for the total amount of money that a country's government has borrowed?

• Gross domestic product (GDP)

• National debt

• Business cycle

• Tradeoff

What is the term for a government-imposed limit on how high a price is charged for a product?

• Price floor

• Price ceiling

• Tradeoff

• Tariff

Match the factor of production with its correct example.

Example: LAND

• Sewing machine

• Company founder/owner

• Machine operator

• Cotton

Who makes economic decisions in a traditional economy?

• Government

• Central authority

• Market forces

• Customs and traditions