Economics Quiz

What is the best definition of supply?

• The amount of a good or service that producers are willing and able to offer for sale at a given price.

• The amount of a good or service that consumers are willing and able to purchase at a given price.

• The point when the quantity supplied and the quantity demanded are equal at a certain price.

• A graphical representation of the different combinations of two goods that a country, a firm, or an individual can produce given a fixed set of resources and technology.

What does the circular flow model illustrate?

• How suppliers make supplies.

• How governments make decisions about PPC’s.

• How households, firms, and governments interact in the economy.

• The likelihood of demand being influenced by pricing changes.

At what level of government do taxes exist?

• Local

• State

• Federal

• All of the above

What is the best definition of demand?

• The amount of a good or service that producers are willing and able to offer for sale at a given price.

• The amount of a good or service that consumers are willing and able to purchase at a given price.

• The point when the quantity supplied and the quantity demanded are equal at a certain price.

• A graphical representation of the different combinations of two goods that a country, a firm, or an individual can produce given a fixed set of resources and technology.

Which of the following is the best definition of a financial exchange?

• Trading one type of currency for another.

• Making an update to the design of a certain type of currency.

• Transferring money between parties in exchange for goods or services.

• A market for the sale of goods.

What does the phrase “opportunity cost” refer to?

• The idea that resources are limited, and we cannot have everything we want.

• The act of selecting one option over another.

• The value of the next best alternative that we forgo when we make a choice.

• None of the above

Which of the following is NOT included in the equation to calculate simple interest?

• The principal

• The interest rate

• The time

• The desired return on investment

What is saving?

• The act of setting aside a portion of one's income or resources for future use.

• The act of allocating money or resources with the expectation of generating a profit or return in the future.

• The act of spending money now to fulfill needs.

• The act of purchasing property with the hope that it will appreciate in value at a later date.

What is investing?

• The act of setting aside a portion of one's income or resources for future use.

• The act of allocating money or resources with the expectation of generating a profit or return in the future.

• The act of spending money now to fulfill needs.

• The act of purchasing property with the hope that it will appreciate in value at a later date.

Which of the following is true of the relationship between compound interest and simple interest?

• All else equal, an account that grows with compound interest will grow faster than an account that grows with simple interest.

• All else equal, an account that grows with simple interest will grow faster than an account that grows with compound interest.

• All else equal, an account that grows with compound interest will grow at the same rate as an account that grows with simple interest.

• All else equal, an account that grows with compound interest will grow slower than an account that grows with simple interest.