Civics & Economics Quiz

What is scarcity in economics?

• The unlimited wants of consumers

• The surplus of goods

• The limited nature of resources

• The abundance of resources

What is opportunity cost?

• The price of a product

• The value of the next best alternative given up

• The benefit of the chosen option

• The cost of producing a good

Which of the following is a basic economic principle?

• Resources are limited

• Choices have no consequences

• Unlimited resources

• All wants can be satisfied

What does supply and demand determine?

• The amount of resources available

• The quality of a product

• The price of a good or service

• The number of producers

What is an incentive in economics?

• A factor that decreases demand

• A type of economic system

• A factor that increases supply

• Something that changes economic behavior

Which question is NOT one of the three basic economic questions?

• Why will it be produced?

• For whom will it be produced?

• How will production occur?

• What will be produced?

What is a characteristic of a traditional economy?

• Driven by government planning

• Focused on technological innovation

• Centered around free markets

• Based on customs and traditions

What is the role of consumers in a market system?

• To control supply

• To produce goods

• To regulate prices

• To demand products

What happens when demand increases and supply remains constant?

• Demand decreases

• Supply increases

• Prices increase

• Prices decrease

What is the main goal of economic decisions?

• To maximize the best interest of all involved

• To satisfy all wants

• To maximize individual benefits

• To minimize production costs