Economic Concepts Quiz

What are the three economic questions?

• What to Produce? How to Produce? Whom to Produce?

• Where to Sell? How to Sell? Whom to Sell?

• What to Buy? How to Buy? Whom to Buy?

• When to Trade? How to Trade? Whom to Trade?

What are goods?

• Items that are bought, sold, or traded and can be physically touched

• Services performed by people

• Digital products available online

• Ideas and concepts shared in meetings

Who are consumers?

• Buyers of goods/services people need or want

• Makers of goods people need or want

• Sellers of goods in a market

• Traders of goods between countries

What is the definition of scarcity?

• Occurs when the demand for goods/services are greater than the supply

• Occurs when the supply of goods/services exceeds demand

• Occurs when goods/services are equally available

• Occurs when goods/services are not needed

What does specialization focus on?

• A narrow range of goods/services that can be made easiest and cheapest

• A wide range of goods/services for diverse markets

• The most expensive goods/services available

• Goods/services that are rarely needed

What is a Traditional Economy?

• An economy where the government makes all decisions

• An economy based on customs and traditions

• An economy where consumers and producers make all decisions

• An economy that combines market and command systems

What does Bartering involve?

• Trading using money

• Trading without using money

• Trading with government intervention

• Trading with international partners

What is Subsistence production?

• Producing for international trade

• Producing for market sale

• Producing only what is necessary for personal use/survival

• Producing with government subsidies

What characterizes a Command Economy?

• Decisions made by consumers and producers

• Decisions based on traditions

• Government makes all economic decisions

• Combination of market and command systems

What is a Market Economy?

• An economy where the government makes all decisions

• An economy based on customs and traditions

• An economy where consumers and producers make all decisions

• An economy that combines market and command systems