Virginia Civics and Economics Quiz

Which of the following is a characteristic of a market economy?

• The government owns all resources.

• Supply and demand determine prices.

• There is no private property.

• The government sets all prices.

What is the main purpose of a budget?

• To increase spending

• To plan how to use income and expenses

• To avoid paying taxes

• To borrow more money

Which of the following is an example of a public good or service provided by the government?

• A private gym membership

• National defense

• A fast food restaurant

• A movie theater

If the price of a product increases, what usually happens to the quantity demanded?

• It increases

• It decreases

• It stays the same

• It doubles

Which of the following best describes opportunity cost?

• The money you spend on something

• The next best alternative given up when making a choice

• The total cost of all options

• The amount of money saved

What is the role of the Federal Reserve System?

• To make laws

• To print newspapers

• To regulate the nation’s money supply

• To collect taxes

Which of the following is an example of human capital?

• A factory building

• A worker’s education and skills

• A company’s stock

• A delivery truck

What is the formula for calculating profit?

Which type of business organization has two or more owners who share the risks and profits?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

What is the main function of banks in the economy?

• To make laws

• To provide goods and services

• To accept deposits and make loans

• To print money