The Basics of Economics

A traditional economy does not use ​ (a)   .

• money
• credit cards
• bank accounts
• stocks

Suppose a cold wave freezes one-fourth of the orange crop. According to supply and demand, what will happen?

• Fewer people will want oranges.

• The price of oranges will increase.

• Orange growers will lose money.

• Orange growers will sell their orchards.

Which is an example of opportunity cost?

• Boris decides to buy a new suit instead of a tablet.

• Dexter babysits so he can save money for college.

• Mimi borrows money from a bank to refurnish her store.

• Elena trades a vintage dress for a vintage pair of shoes.

The primary task of an entrepreneur is to create a ​ (a)   .

• business
• product
• website
• charity

Which factor usually hurts an economy in the long run?

• territorial expansion

• new technology

• high productivity

• slave labor

An economy is ...

• A type of currency used in trade.
• A system for managing resources and goods in a society.
• A method for calculating taxes in a country.
• A political system governing a nation.

A market economy is ...

• an economic system based on supply and demand with minimal government intervention.
• an economic system controlled entirely by the government.
• an economy that relies solely on barter and trade.
• a system where prices are set by government regulations.

A command economy is ...

• an economic system where prices are determined by supply and demand.
• a market-driven economy with minimal government intervention.
• a type of economy that relies solely on barter and trade.
• an economic system where the government controls production and distribution.

Which is NOT a Factor of Production?

• Entrepreneurship
• Land
• Element

• Labor

Opportunity costs are ...

• the benefits of the chosen option
• the total cost of all alternatives considered
• the cost of production for a good or service
• the value of the next best alternative forgone when making a decision