Economics Quiz

___________ are things that people do.

• Goods

• Producers

• Services

• Consumers

The four main factors of production are natural resources, labor, __________, and entrepreneurs.

• capital

• farmers

• land

• oceans

Which statement best characterizes opportunity cost?

• the amount of a good that businesses are able to produce

  
  

• the amount of money left over after expenses have been paid

  
  

• the number of people who are ready to buy a product at a certain price

  
  

• the value of a product that you give up in a tradeoff with another product

  
  

In general, if the price of a good or service goes down, what happens to the demand for that good or service?

• demand goes up
• demand stays the same
• demand goes down
• none of the above

If new Jordan shoes are released and the supply cannot keep up with the number of people who want to buy it, what is likely to happen to the price?

• The price will decrease because it is a new game.

• The price will increase because the demand is higher than the supply.

• The price will stay the same because it is popular.

• The price will decrease because the game is in high demand.

What is the definition of economy?

• The way in which a society organizes the production and distribution of goods and services

• A system of exchanging goods and services

• The way resources are gathered in order to produce goods and services

• A person who has the idea of a business and gathers all the resources to start one

A __________economy is based on customs and traditions passed down through generations.

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

Which economic system is characterized by government ownership of resources and centralized decision-making?

• Market Economy

• Mixed Economy

• Command Economy

• Traditional Economy

What is trade?

• The act of saving money

• The exchange of goods and services

• The process of making goods

• The act of consuming goods

___________are products that people consume or use.

• Goods

• Benefits

• Services

• Ideas