Economic Concepts Quiz

What does the Production Possibilities Curve (PPC) represent?

• The maximum output of one good given the output of another good

• The total cost of producing goods

• The demand curve for a product

• The supply curve for a product

What are the factors of production?

• Land, labor, entrepreneurship and capital

• Money, time, and effort

• Goods, services, and technology

• Supply, demand, and price

What are "needs" in economic terms?

• Things that are required in order to live

• Things that add comfort and pleasure to your life

• Goods that are used in producing other goods

• Goods produced for present consumption

What are "capital goods"?

• Goods that are used in producing other goods

• Goods produced for present consumption

• Things that add comfort and pleasure to your life

• Things that are required in order to live

What is a command economy?

• An economic system where the government controls the country's economy.

• An economic system based on private property and freedom.

• An economy based on customs and traditions.

• A system where economic decisions are made by individuals and businesses.

Which economic system is based on private property, freedom, self-interest, and prices?

• Command Economy

• Market Economy (Capitalism)

• Traditional Economy

• Mixed Economic System

What are the three basic economic questions?

• What to buy? How to sell? Where to invest?

• What to produce? How to produce? For whom to produce?

• How to save? Where to spend? When to invest?

• What to consume? How to consume? Why to consume?

What is a mixed economic system?

• An economy based on customs and traditions.

• An economic system where the government controls the economy.

• A system where economic decisions are made by individuals, businesses, and government.

• An economic system based on private property and freedom.

What is one advantage of a market economy?

• Guaranteed jobs and income.

• Freedom and efficiency.

• Government control over production.

• Stability and equality.

Which of the following is an example of a mixed economy?

• China

• North Korea

• United States

• Vietnam