Economics Quiz

Economics is the study of how people satisfy unlimited wants/needs with the use of what?

• Abundant resources

• Scarce resources

• Unlimited resources

• Renewable resources

What are the three basic questions societies face about the production of goods?

• When, where, and why

• What, how, and for whom

• Who, what, and where

• Why, how, and when

What is the opportunity cost?

• The cost of the first choice

• The value of the next best alternative given up

• The total cost of all alternatives

• The cost of the least preferred option

What are trade-offs?

• Choices that are made without any alternatives

• Alternative choices that are given up when making a decision

• The best possible choices available

• Choices that have no consequences

In which economic system is the government most likely to provide people with goods and services they could not otherwise afford?

• Capitalist

• Socialist

• Mixed

• Traditional

What is the most common economic system in the world today?

• Capitalist

• Socialist

• Mixed

• Traditional

What three synonyms can be used to describe the American Economic system?

• Command, socialist, planned

• Free market, free enterprise, capitalism

• Traditional, barter, trade

• Mixed, regulated, controlled

How do economists define incentives?

• What motivates people to work, save, and invest

• The rewards given for hard work

• The penalties for not working

• The benefits of saving money

What are possible effects of inflation?

• Decreased cost of living

• Easier future planning

• Workers need more money for essentials

• Lower loan interest rates

What are the characteristics of demand?

• The desire, willingness, and ability to buy something

• The need, want, and necessity to sell something

• The ability, necessity, and urgency to produce something

• The willingness, need, and urgency to save something