Economics Chapter 1 Test (Fall 2024)

___________________________ exists when our wants are greater than the resources available to satisfy those wants.

• Scarcity
• Opportunity cost
• Incentive

The question of what goods will be produced must be answered because

• Consumers would like to have these goods
• Scarcity exists
• Command economies need to write a plan

North Korea has which type of economic system?

• Command Economy
• Mixed Economy
• Market Economy

If a country has a market economic system then they are also known as ___________. (-ism)

• Capitalism
• Communism
• Socialism

If a country has a command economic system then they are also known as ________________. (-ism)

• Capitalism
• Federalism
• Socialism

Government creating an agency to help regulate and monitor the purchase of over the counter medicines is an example of a _______________________________.

• Capitalism (Market Economy)
• Socialism (Command Economy)
• Socialism (Market Economy)

Mr. Nichols deciding to quit his job and open a lemonade stand without any approval, permits, or licensing from the government is an example of _____________________________.

• Capitalism (Market Economy)
• Socialism (Command Economy)
• Socialism (Market Economy)

Mr. Nichols bought 100 shares of Wal-Mart stock at 144.34 per share. How much money did he spend?

After 5 weeks, Mr. Nichols sold the 100 shares of Wal-Mart stock that he bought at 144.34 per share. He sold the 100 shares of Wal-Mart stock for 234.25 per share. How much money did he make?

What is the name of this company? What is their ticker symbol? What is their current stock price?