Fundamental Economic Concepts Quiz

This is the fundamental law that asserts when prices increase, so too does the amount produced.

• Law of Demand

• Law of Diminishing Returns

• Law of Supply

• Law of Trade

In an economy, this is the amount of a good or service purchased or desired for purchase by consumers.

• Supply

• Demand

• Scarcity

• Profit

This is the state of being in short supply.

• Abundance

• Surplus

• Scarcity

• Deficit

This book articulated and codified the foundational beliefs of modern free-market economics.

• The Communist Manifesto

• The General Theory of Employment, Interest, and Money

• The Wealth of Nations

• Das Kapital

This is an economic theory and system predicated upon a country's trade and industry being controlled by private owners for profit, rather than by the state.

• Socialism

• Communism

• Capitalism

• Mercantilism

This is the practice of eliminating tariffs in order to maximize regional and interregional commercial trade.

• Mercantilism

• Protectionism

• Free Trade

• Isolationism

This is the term used to define when the supply of a good or service meets the amount demanded by consumers.

• Surplus

• Equilibrium

• Shortage

• Deflation

This is the concept that profit-driven individuals will provide for all of society’s needs.

• The Invisible Hand

• The Law of Demand

• The Free Market Principle

• The Production Possibility Frontier

This French term means ‘hands off,’ often referring to a lack of government interference in the economy.

• Laissez-faire

• Déjà vu

• Carte blanche

• Bourgeoisie

This is the study of economics concerned with the single factors and decisions of individuals.

• Macroeconomics

• Microeconomics

• Global Economics

• Behavioral Economics