Economics Quiz

In the product market,

• A productive resources are bought and sold.

• B producers sell goods & services to consumers.

• C a nation’s total output of goods & services increases.

• D the amount of output produced by a given amount of input is measured.

Money that individuals receive from businesses returns to businesses in

• A the factor market.

• B the purchase of land.

• C the product market.

• D households.

Where do businesses sell the goods & services they produce?

• A In the factor market.

• B In the product market.

• C In the capital market.

• D In the marketplace.

Which statement is true of the CFM?

• A Individual spend money to purchase factors of production from factor markets.

• B Money is used to purchase goods & services in the product markets.

• C Businesses pay for goods & services purchased in the product market with money.

• D Money is used to purchase factors of production in the product markets.

Which is NOT a function of money?

• A Store of Value

• B Measurable Store of Valuable Exchange

• C Measure of Value

• D Medium of Exchange

Farmer Randy has a peach orchard. His neighbor, Farmer Dan, has a watermelon patch. It’s difficult to say how many apples equal a watermelon without knowing what each costs per pound. This illustrates which function of money?

• A Store of Value

• B Measurable Store of Valuable Exchange

• C Measure of Value

• D Medium of Exchange

Which two are NOT characteristics of money?

• A Divisibility & Acceptability

• B Limited Supply & Uniformity

• C Commonality & Feasibility

• D Portability & Durability

Which characteristic of money does the following statement describe: Any two units of currency must be the same in what they will buy; it must be able to be counted and measured accurately.

• A durability

• B uniformity

• C limited supply

• D divisibility

Where do business firms get the money to pay resource owners for their land, labor, capital and entrepreneurship in factor markets?

Give an example of a transaction you or your family made this month in a factor market.