Economics Diagnostic - 6GSS

Which of the following is NOT a factor of production?

• land

• labor

• money

• capital

What does "capital" refer to in economics?

• Natural resources like oil and water

• Money used for shopping

• Tools and machines used to produce goods; people's skills and knowledge

• Workers and employees

If the demand for a product increases but the supply stays the same, what will likely happen to the price?

• The price will go down.

• The price will stay the same.

• The price will go up.

• The price will disappear.

When there is too much of a product and not enough buyers, what is this situation called?

• Shortage

• Inflation

• Equilibrium

• Surplus

What is an export?

• A product sent to another country for sale

• A product bought from another country

• A tax on goods

• A type of savings account

Why do countries trade with one another?

• Because no country can produce everything it needs

• To increase taxes

• To avoid using money

• To reduce population growth

What are taxes used for?

• To make businesses rich

• To pay for public services like schools and roads

• To punish people for spending too much

• To pay for personal savings accounts

Which of the following is an example of saving?

• Spending money on new shoes

• Putting money into a bank account

• Borrowing money to buy a car

• Paying taxes

What does "scarcity" mean in economics?

• Not having enough resources to meet everyone's needs

• A surplus of goods in a market

• Having more resources than needed

• A situation where money has no value

How are resources usually distributed in a market economy?

• By government decisions

• By random chance

• By supply and demand

• Equally to everyone