Economics Multiple Choice Worksheet

Which of the following is not a natural resource?

• wool

• oil

• money

• wheat

The amount of money exchanged for a good or service is

• capital

• supply

• demand

• price

According to the Law of Demand, consumers are likely to buy more goods and services when prices are

• lower.

• higher.

• changing.

• equal.

The tools (machinery) needed to produce goods and services is called -

• capital.

• gross income.

• profit.

• tax revenue.

The type of economy a country has is determined by the -

• amount of government involvement in economic decisions.

• number of consumers and producers.

• amount of profit each business makes the previous year.

• popular vote of its citizens.

According to the Law of Supply, producers will produce less when they can sell goods and services at

• lower prices.

• higher prices.

• equilibrium price.

• a changing price.

Which of the following is not a characteristic of a command economy?

• competition

• centrally-planned economy

• central ownership of property/resources

• lack of consumer choice

Available resources and consumer preferences determine

• what is purchased.

• what is sold.

• what is produced.

• price.

The most common type of economic system today is-

• free market.

• command.

• traditional.

• mixed.

Consumer preferences and price determine

• what is purchased.

• what is made.

• what is produced

• scarcity