Summative Economics Quizizz (20 Questions)

What does the term scarcity refer to in economics?

• Not being able to find what you want

• A shortage caused by poor planning

• Limited resources but unlimited wants

• When consumers refuse to buy

Answer explanation

Scarcity in economics refers to the fundamental problem of having limited resources while facing unlimited wants. This means that resources are insufficient to satisfy all desires, making the correct choice 'Limited resources but unlimited wants'.

Which of the following is the best example of opportunity cost?

• Saving money instead of buying clothes

• A 20% discount at a store

• Getting paid more for overtime

• Spending your entire paycheck

Answer explanation

Opportunity cost refers to the value of the next best alternative foregone. By saving money instead of buying clothes, you are choosing to forgo the immediate satisfaction of new clothes for future savings, making it the best example.

What is one reason businesses care about elasticity of demand?

• To reduce supply chain risks

• To determine price sensitivity and revenue impact

• To calculate GDP

• To balance budgets

Answer explanation

Businesses care about elasticity of demand to determine price sensitivity and revenue impact. Understanding how changes in price affect demand helps them make informed pricing and production decisions.

If consumers expect gas prices to rise next week, what will likely happen now?

• A) Demand will fall

• B) Supply will increase

• C) Demand will increase

• D) Quantity supplied will decrease

Answer explanation

If consumers expect gas prices to rise, they are likely to buy more now to avoid paying higher prices later. This increased urgency leads to an increase in demand for gas, making option C the correct choice.

Which of the following actions would improve your credit score over time?

• Only using cash

• Taking out large loans regularly

• Paying your full credit card balance on time

• Opening multiple accounts every month

Answer explanation

Paying your full credit card balance on time demonstrates responsible credit use, which positively impacts your credit score. Other options either do not build credit or can harm your score.

In a command economy, how are prices typically determined?

• A) Based on individual producer goals

• B) Through competition

Answer explanation

In a command economy, prices are typically determined by the goals of individual producers rather than market competition. This means that producers set prices based on their objectives, making option A the correct choice.

The Federal Reserve most directly influences the economy by:

• Collecting taxes

• Setting interest rates

• Regulating business competition

• Cutting federal programs

Answer explanation

The Federal Reserve most directly influences the economy by setting interest rates, which affects borrowing, spending, and investment. This tool is crucial for managing economic growth and controlling inflation.

What does the Bible teach about our attitude toward money in 1 Timothy 6:10?

• Money solves all problems

• The love of money is a root of evil

• Wealth proves God’s blessing

• Saving is pointless

Answer explanation

1 Timothy 6:10 teaches that the love of money can lead to various evils, emphasizing that an unhealthy attachment to wealth can corrupt one's values and priorities.

What is the main downside of using credit cards poorly?

• They lower your income

• They prevent saving

• They can lead to long-term debt and high interest

• They eliminate budgeting needs

Answer explanation

The main downside of using credit cards poorly is that they can lead to long-term debt and high interest. This can create a cycle of debt that is difficult to escape, impacting financial stability.

In Monopoly, a player who controls all utilities is most likely demonstrating:

• Price elasticity

• Perfect competition

• Monopoly power

• Equal distribution

Answer explanation

In Monopoly, controlling all utilities gives a player significant market power, allowing them to set prices and maximize profits, which exemplifies monopoly power. This is distinct from concepts like price elasticity or perfect competition.