The economics of Economic Quiz

What is scarcity?

• An abundance of resources

• A lack of goods or services that people demand or want

• A surplus of goods

• An increase in supply

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DOK Level 1: Recall

Which of the following is an example of scarcity?

• Unlimited money

• Time limited to 24 hours a day

• Infinite resources

• Endless supply of goods

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DOK Level 1: Recall

What happens to the price of goods when supply increases?

• Price goes up

• Price goes down

• Price remains the same

• Price fluctuates randomly

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DOK Level 1: Recall

Define supply in economic terms.

• The amount of goods or services consumers want

• The amount of goods or services available

• The demand for goods

• The scarcity of resources

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DOK Level 1: Recall

What is demand?

• The amount of goods producers are willing to sell

• How much of a good or service consumers want

• The surplus of goods

• The lack of resources

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DOK Level 1: Recall

Explain how supply and demand work together to determine prices.

• They work independently to set prices

• Supply and demand together determine prices based on their levels

• Only demand affects prices

• Only supply affects prices

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DOK Level 2: Skill/Concept

What is an incentive in economic terms?

• A punishment for not doing something

• A reward or benefit that motivates people to do something

• A tax on goods

• A decrease in supply

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DOK Level 1: Recall

Describe the effect of inflation on the value of money.

• Increases the value of money

• Reduces the value of money

• Has no effect on the value of money

• Stabilizes the value of money

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DOK Level 2: Skill/Concept

If the demand for a product increases, what is likely to happen to its price?

• The price will decrease

• The price will increase

• The price will remain the same

• The price will fluctuate randomly

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DOK Level 2: Skill/Concept

How does scarcity influence economic decision-making?

• It has no influence on decision-making

• It forces choices due to limited resources

• It leads to unlimited choices

• It simplifies decision-making

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DOK Level 2: Skill/Concept