Economics Quiz

______________  is the battle for your business between sellers of a particular good or service. For instance, if Staples sells markers for $2.49, but Walmart sells them for $.97, this is ______________. This helps to keep prices low.

• Competition
• Market
• Entrepreneur
• Trade

The amount of money paid for a good or service is the _________________.

• price
• sale
• discount
• salary

_________________ take risks to develop new goods and services to start a business.

• Stock Markets
• Governments
• Entrepreneurs
• Households

What happens when supply of a product goes down but demand goes up?

• The price of the product stays the same.
• The price of the product goes down.
• Producers will no longer want to make the product.
• The price of the product goes up.

Which of the following describes an entrepreneur?

• A person who organizes, operates, and assumes the risk to start a new business.

• A person who is hired to work in a factory.

• A person who invests in businesses to make money.

• A person who loans the money to a new business just getting started.

This encourages people to purchase goods and services.

• income
• supply/demand
• scarcity
• price incentive

Having a ____________ is a way for people to keep track of how much they spend.

• a loan

• a budget
• an investment
• a price incentive

When people sell their labor to a business they earn money. What is this money called?

• taxes

• income

• profit

• economy

The opportunity to get one pair of shoes for free when you purchase another pair at full price is an example of a...

• specialization

• price incentive

• opportunity cost

• voluntary exchange

People earn money for their work. Their work is called _______.

• entrepreneur

• employer

• labor

• income