CE11 Civics Economic Concepts Quiz

What is the definition of scarcity in economics?

• The unlimited availability of resources

• The limited nature of society's resources

• The abundance of goods and services

• The excess of supply over demand

Which of the following best describes opportunity cost?

• The cost of producing one more unit of a good

• The value of the next best alternative foregone

• The total cost of all resources used in production

• The difference between total revenue and total cost

Identify the type of resource: A factory used to produce goods.

• Natural resource

• Human resource

• Capital resource

• Entrepreneurial resource

Which of the following is an example of a natural resource?

• Machinery

• Water

• Labor

• Technology

What is the primary factor that affects the price of a good in a market?

• The number of producers

• The level of technology

• The balance of supply and demand

• The amount of advertising

How does an increase in demand affect the price of a product, assuming supply remains constant?

• Price decreases

• Price remains the same

• Price increases

• Price fluctuates randomly

What is the opportunity cost of choosing to spend time studying instead of going to a movie?

• The cost of the movie ticket

• The enjoyment of watching the movie

• The time spent studying

• The knowledge gained from studying

Which of the following is a decision that involves making an economic choice?

• Deciding what to eat for dinner

• Choosing between two job offers

• Selecting a book to read

• Picking a color for a new car

What happens to the supply of a product if the cost of production decreases?

• Supply decreases

• Supply remains the same

• Supply increases

• Supply becomes unpredictable

Which of the following is an example of consumption?

• Building a new factory

• Buying a new smartphone

• Hiring more employees

• Investing in stocks