Introduction to Economics Quiz

What is the study of how individuals and companies make decisions to allocate scarce resources?

• Macroeconomics

• Microeconomics

• Economic Systems

• Supply

______ is the quantity of a good or service that consumers are willing to buy at a given price.

• Supply

• Demand

• Economic Resources

• Factors of Production

What is the definition of Fixed Cost?

• A) A cost that varies with the level of output.

• B) Business costs that are constant regardless of the quantity of goods or services produced.

• C) The cost added by producing one additional unit of a product or service.

• D) The additional benefit to a consumer from consuming one more unit of a good or service.

Market structure is important because it helps determine _______.

• the cost of production

• the level of output

• the nature of competition

• the allocation of resources

Which is not one of the four types of production?

• Land

• Natural

• Capital

• Entrepreneurship

Fill in the blank: Needs and Wants are ________.

• Limited

• Unlimited

• Rare

• Abundant

Which one is NOT a step in the decision making process?

• Identify the problem

• Identify the choices

• Determine the pros and cons

• Ask others for feedback

• Review your decision

What one is NOT one of the four types of Economic Systems?

• Command

• Market

• Traditional

• Oligopoly

Supply and demand is a theory that explains the interaction between the _______ of a resource and the _______ of that resource.

• sellers, buyers

• producers, consumers

• manufacturers, retailers

What does PACED stand for?

• Problem, Alternatives, Criteria, Evaluate, Decide

• Plan, Act, Check, Execute, Deliver

• Prepare, Analyze, Create, Execute, Deliver

• Problem, Action, Criteria, Evaluate, Decide