Economics Quiz

What is this graph showing?

• Increase in Supply

• Decrease in Demand

• Increase in Demand

• Price Ceiling

A market economy allows the government to control production decisions.

• True

• False

Which of the following best describes opportunity cost?

• The money spent on a decision

• The benefits of the best alternative forgone

• The amount of money needed to start a business

• The amount of time spent making a decision

Which of the following is NOT a factor of production?

• Labor

• Capital

• Government policy

• Land

What is the key difference between physical and human capital?

• Physical capital involves money, while human capital involves people

• Human capital refers to machines, while physical capital refers to workers

• Physical capital is human-made objects, and human capital is the skills and knowledge of workers

• There is no difference

Capital goods refer to the tools, equipment, and machinery used to produce other goods and services.

• True

• False

Which economic system promotes the most competition?

• Traditional Economy

• Command Economy

• Market Economy

• Mixed Economy

In which economic system do consumers have the most power?

• Command Economy

• Market Economy

What is specialization in economics?

• When workers focus on one task to increase efficiency

• When businesses own all resources

• When there is a focus on government intervention

• When workers do many different jobs

What does a point on the PPC (Production Possibility Curve) represent?

• The total amount of goods produced

• The opportunity cost of production

• The maximum possible production combinations of two goods

• The level of unemployment