Principles of Economics Quiz

What does the term 'economy' originate from?

• Latin for 'trade'

• Greek for 'one who manages a household'

• French for 'money management'

• Old English for 'bartering'

What is the primary reason for the need to manage resources?

• Resources are unlimited

• Resources are scarce

• Money is distributed equally

• There is no competition

Economics is primarily concerned with how society manages its ________.

• Money

• Technology

• Scarce resources

• Government policies

What is a key principle of decision-making in economics?

• There is no such thing as a free lunch

• Money grows on trees

• Prices never change

• Demand always equals supply

The concept of 'trade-offs' in decision-making means:

• Choosing one thing usually means giving up another

• All decisions are beneficial

• People never have to compromise

• Resources are infinite