Econ Vocabulary Quiz #3

What is scarcity in economic terms?

• The unlimited availability of resources

• Having unlimited wants and limited resources.

• The abundance of goods and services

• The surplus of labor

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DOK Level 1: Recall

Which of the following is an example of an incentive in economics?

• A natural disaster

• A tax rebate for purchasing energy-efficient appliances

• A decrease in population

• A change in weather patterns

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DOK Level 1: Recall

What are the three basic economic questions every society must answer?

• What to produce, how to produce, and for whom to produce

• How to save, how to invest, and how to spend

• What to consume, how to consume, and when to consume

• How to trade, how to barter, and how to sell

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DOK Level 1: Recall

In a command economic system, who primarily makes the economic decisions?

• Individual consumers

• Private businesses

• The government

• International organizations

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DOK Level 1: Recall

How does a market economic system primarily allocate resources?

• Through government planning

• By random selection

• Through supply and demand

• By traditional methods

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DOK Level 1: Recall

Identify the four factors of production.

• Land, labor, capital, and entrepreneurship

• Money, time, energy, and effort

• Goods, services, technology, and innovation

• Resources, products, markets, and consumers

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DOK Level 1: Recall

What is opportunity cost?

• The total cost of all possible choices

• The cost of the next best alternative foregone

• The cost of producing one more unit of a good

• The cost of all resources used in production

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DOK Level 1: Recall

How is equilibrium price determined in a market?

• When supply exceeds demand

• When demand exceeds supply

• When supply equals demand

• When prices are set by the government

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DOK Level 1: Recall

What is the primary difference between imports and exports?

• Imports are goods sold abroad, exports are goods bought from abroad

• Imports are goods bought from abroad, exports are goods sold abroad

• Imports are services provided domestically, exports are services provided abroad

• Imports are goods produced domestically, exports are goods produced abroad

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DOK Level 1: Recall

What does GDP (Gross Domestic Product) measure?

• The total value of all goods and services produced in a country's borders

• The total amount of money in circulation

• The total number of jobs in a country

• The total amount of exports and imports

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DOK Level 1: Recall