Economics Quiz

Scarcity is defined as “a limited supply of resources and…

• Limited wants for those resources

• Limited resources

• Unlimited resources

• Unlimited wants for available resources

Why do we have to make production choices about available resources?

• Too many resources for the demanded

• Unlimited resources

• Limited wants

• Scarcity

Economics is the study of how

• Governments allocate resources to satisfy citizens’ unlimited wants

• People use their scarce resources to satisfy their unlimited wants

• Governments supply money to businesses to produce goods and services

• Businesses supply unlimited goods and services with limited resources

Opportunity cost is the value of the _______ that had to be given up if the alternative was chosen

Nemo is studying for his math test but his favorite show just started. If he continues to study for his math test he will miss out on watching his show. Nemo decides that studying for the math test is more important than watching his favorite TV show. In this scenario, what is the opportunity cost?

• Studying for the quiz

• Eating dinner

• Watching TV

• Taking a nap

Because of scarcity, people are forced to make _______ about how to utilize their resources

• Scarcity

• Opportunity cost

• Needs

• Supply lists

Money received from stocks and shares is called

Tips earned at a restaurant job are considered

• Income

• Capital gains

• Dividends

• Royalties

Based on the above graph, which of the following is the best investment strategy in order to save for retirement at 65?

• Invest in your 20s, stop investing after 10 years

• Invest in your 20s, continuously invest until retirement

• Invest in your 30s, continue to invest until retirement

• Invest in your 40s, stop investing after 10 years

A quick way to determine how long it will take your invested money to double is called

• Simple interest

• Compound interest

• Rule of 72

• Rule of 13