Economics Quiz

What is the study of the production, distribution, and consumption of goods and services called?

• Sociology

• Economics

• Psychology

• Anthropology

What term describes produced physical products?

• Services

• Goods

• Necessities

• Wants

Who is a consumer?

• Someone who produces goods

• Someone who sells goods

• Someone who uses goods and services to satisfy wants and needs

• Someone who distributes goods

What is elasticity in economic terms?

• The measure of how much a product can stretch

• The fluctuation in demand of a certain product in relation to pricing

• The ability of a product to be recycled

• The measure of a product's durability

What is a substitute in economic terms?

• A good used in conjunction with other goods

• A good which can be used in place of another

• A good necessary for survival

• A good that is always in demand

What is a normal good?

• A good whose consumption decreases with an increase in income

• A good whose consumption remains constant regardless of income

• A good whose consumption increases with an increase in income

• A good that is always in demand

What is an inferior good?

• A good whose consumption increases when income increases

• A good whose consumption decreases when income increases

• A good with constant consumption regardless of income changes

• A good with no elasticity

What happens to the demand for luxuries when income increases?

• Demand decreases

• Demand remains the same

• Demand rises

• Demand becomes negative

What does economic efficiency refer to?

• Production of goods in excess

• Production of people’s wants in quantities wanted

• Production of goods with minimal resources

• Production of goods with maximum waste

According to the Law of Demand, what happens when the price of a good falls?

• The quantity demanded will decrease

• The quantity demanded will increase

• The quantity demanded will remain the same

• The quantity demanded will become zero