Crash Course Economics Quiz

What is economics the study of?

• Money and banking

• How the stock market works

• People and the choices they make

• How to become rich

Which of the following is an example of a real-world economic decision?

• What color to paint your room

• Whether to go to college or start working

• What book to read for fun

• Whether to go outside or stay in

What is opportunity cost?

• The money you spend on something

• The value of the next best thing you didn’t choose

• The total price of your decision

• Something that doesn’t cost anything

What does every choice involve?

• A mistake

• A loss of money

• A cost

• A reward

What does scarcity mean?

• We have too much stuff

• People always want more

• Resources are unlimited

• People want more than there are resources

Why do people, businesses, and governments make choices?

• Because everything is free

• Because they enjoy making lists

• Because resources are limited

• Because they don’t care about costs

What is an incentive?

• A type of price

• A reason or reward that motivates someone to act

• A kind of punishment

• A bill from the government

What’s a problem with bad or “perverse” incentives?

• They cost too much

• They confuse people

• They can lead to unexpected or worse outcomes

• They never work at all

What does macroeconomics study?

• One small company’s prices

• The choices of one person

• The whole economy, like inflation and unemployment

• How to invest in stocks

How does studying economics help you?

• It guarantees you’ll make more money

• It teaches you how to become a banker

• It helps you make smarter decisions and understand the world

• It shows you how to avoid working