Quizziz 1

What is the fundamental economic problem faced by all societies ?

• Inflation

• Scarcity

• Unemployment

• Overproduction

Scarcity forces individuals and societies to make choices because:

• Resources are unlimited

• Wants are limited

• Money is not a resource

• Resources are limited

What is an opportunity cost?

• The financial cost of a decision

• The value of the next best alternative

• The total cost of production

• The total revenue earned

Why do societies experience scarcity?

• Due to lack of government intervention

• Resources are limited, but wants are unlimited

• People do not work hard enough

• There are too many resources

Which of the following is NOT one of the three basic economic questions?

• What to produce ?

• How to produce ?

• For whom to produce ?

• Why to produce ?

In a command economy, who decides what to produce?

• Consumers

• Private businesses

• The government

• Foreign investors

How do market economies decide how to produce goods?

• Government planning

• Consumer and producer interactions

• Random selection

• By flipping a coin

Which economic system allows consumers to have the greatest influence on what is produced?

• Market economy

• Traditional economy

• Command economy

• Mixed economy

"For whom to produce" refers to:

• The costs of production

• The types of resources used

• The method of production

• The distribution of goods and services

Which of the following is an example of an economic choice?

• A) Choosing to sleep instead of studying

• B) Watching TV after finishing homework

• C) Walking instead of driving

• D) Both A and C