Basic Economic Concepts Quiz

The places where goods and services are sold are called a

• marketplace.

• farm.

• park.

When there are not enough of an item in a store for people to buy what they need or want, this is called

• surplus.

• excess.

• scarcity.

When products are scarce in a market, the item's price

• goes up.

• goes down.

• stays the same.

• becomes free.

Scarcity forces people to

• consume more.

• make an economic choice.

• continue to make the same choices.

• ignore the problem.

Our economy revolves around

• people.

• helping others.

• money.

When we exchange one good or service for another good or service, this is called

• spending money.

• bartering.

• being fair.

Who determines the value of money?

• products

• people

• the government

What are two factors that determine the cost of an item?

• The color of the item and the store location

• The value of the resources used and the price retailers want to charge

• The size of the item and the time of year

• The brand of the item and the weather

What must consumers decide when buying something?

• What they want and what they can afford

• What color it is and how big it is

• What their friends like and what is popular

• What time it is and what day it is

What must people have when spending money?

• A shopping list

• A budget

• A calculator

• A friend