Economics Quiz

Which is an example of scarcity?

• A fan cannot go to a concert because there are not enough tickets.

• A fan cannot go to a concert because he has to do homework instead.

• A fan goes to a concert because there are enough tickets for everyone.

• A fan goes to a concert instead of doing homework.

A lawyer does work that could be classified as

• a service.

• a basic need.

• a transferable good.

• a consumer good.

What two economic factors determine the value of something?

• Capital and scarcity

• Need and want

• Scarcity and utility

• Durability and service

What questions do all societies have to answer economically?

• What, how, and for whom to predict economic outcomes

• What, how, and for whom to produce

• How to measure their gross domestic product

• Why and how to increase scarcity

Why do countries have to produce on or inside the production possibilities curve?

• They use their abundant resources in unproductive ways.

• They lack the available resources to go beyond the curve.

• They choose to produce at less than maximum production.

• They fully employ all of their resources for production.

If 3 people want a candy bar, is there a scarcity?

• Yes, there is a scarcity.

• No, there is not a scarcity.

The difference between scarcity and shortage is

• scarcity is a natural & re-occurring condition; shortage is a man-made condition

• shortage only happens with new products

• shortage is a natural & re-occurring condition; scarcity is a man-made condition

• shortage is the fundamental, universal economic problem

What is the basic principle of supply and demand?

• When supply increases, demand decreases.

• When demand increases, supply decreases.

• When supply increases, prices decrease.

• When demand increases, prices decrease.

Tags

DOK Level 1: Recall

When price increases, what happens to demand?

• Demand will increase

• Demand will decrease

• Demand will stay the same

Which of the following best defines the economic term "marginal"?

• The total amount of resources available for production

• The additional benefit or cost associated with a small change in the level of an economic activity

• The overall market demand for a good or service

• The average cost of producing goods at a certain level of output