Understanding Economic Principles Quiz Part 1

Who owns the economic resources in a market economy?

• the people of the country

• the tribal elders

• the government

• businesspeople and entrepreneurs but not consumers

Which of the following is an economic need?

• a new television

• water

• concert tickets

• a loaded SUV

In every nation on Earth,

• economic resources are owned and controlled by the government.

• workers have the ability to produce the same goods and services.

• individuals have the same wants and needs.

• people must deal with the problem of scarcity.

Jonah had $25 to spend. He decided to buy a new shirt instead of going to the amusement park with his friends. Jonah has

• purchased a service.

• made an economic trade-off.

• made a poor economic decision.

• ignored the concept of scarcity.

If everybody had an unlimited supply of economic resources, which of the following would NOT exist?

• wants

• capitalism

• scarcity

• needs

Which of the following is NOT an especially important principle of the U.S. economic system?

• freedom of choice

• private property

• tradition

• profit

What is the first step in the decision-making process?

• identify the choices

• define the problem

• evaluate the choices

• act on your choice

Generally, as the price of a product increases,

• consumers will be willing to purchase larger quantities of the product

• businesses will be willing to supply larger quantities of the product.

• the supply curve will slope downward.

• demand will increase.

The largest producer of goods and services in the world is

• Japan.

• Russia.

• the United States.

• China.

Another name for the economic system in the United States is

• private enterprise.

• capitalism.

• free enterprise.

• all of the above.