Basic Economic Questions Quiz

What is the first basic economic question every society must answer?

• What to produce?

• How to produce?

• When to produce?

• For whom to produce?

What is a capital good?

• A good that is consumed by individuals

• A good used to produce other goods

• A good that lasts less than three years

• A good that is intangible

Which of the following is an example of a service?

• A teacher

• A car

• A smartphone

• A book

What is the second basic economic question?

• What to produce?

• How to produce?

• For whom to produce?

• Why to produce?

What is a consumer good?

• A good used to produce other goods

• A good that is intangible

• A good purchased for personal use

• A good that lasts more than three years

What is the third basic economic question?

• What to produce?

• How to produce?

• For whom to produce?

• Where to produce?

What is a durable good?

• A good used to produce other goods

• A good that is intangible

• A good that lasts more than three years

• A good that lasts less than three years

What is a non-durable good?

• A good that is intangible

• A good that lasts less than three years

• A good used to produce other goods

• A good that lasts more than three years

Why might a business choose human labor over automation?

• Because machines are not available

• Because machines are always more expensive

• Because there is high unemployment

• Because human labor is always faster

What is an example of a capital good?

• A smartphone used for personal calls

• A car used for family trips

• A book read for leisure

• An iPad used for business inventory