Economics Quiz

What is the definition of economics?

• The study of weather patterns

• The study of human behavior

• The study of how people use resources

• The study of ancient civilizations

What does scarcity refer to in economics?

• Unlimited resources

• Limited resources

• Abundant resources

• Infinite resources

Which of the following is NOT one of the four factors of production?

• Land

• Labor

• Capital

• Technology

Who is an entrepreneur?

• A person who studies economics

• A person who starts and runs a business

• A person who works for the government

• A person who teaches economics

What is opportunity cost?

• The cost of all opportunities

• The cost of the next best alternative

• The cost of production

• The cost of resources

What does efficiency mean in economics?

• Maximizing waste

• Minimizing waste

• Increasing costs

• Decreasing production

How do incentives motivate people?

• By providing punishments

• By providing rewards

• By increasing costs

• By decreasing resources

What is the main incentive for a business?

• Profit

• Resources

• Labor

• Land

What does a Production Possibilities Graph show?

• The maximum possible output combinations of two goods

• The minimum possible output combinations of two goods

• The average output combinations of two goods

• The total cost of production

How can an economy increase its production possibilities?

• By decreasing resources

• By increasing resources

• By reducing labor

• By limiting technology