Intro. to Economics Practice Quiz

What is the likely result when a population's wants and needs exceed the population's available resources?

• Scarcity of Goods and Services
• Falling Prices of Goods and Services
• Surplus of Goods and Services
• Further Increased Demand of Goods and Services

How does scarcity typically impact businesses in an economy?

• Scarcity reduces barriers to entry into competitive markets for businesses
• Scarcity forces businesses to lower the prices of their goods to ensure high demand.
• Scarcity reduces the costs associated with production for businesses.
• Scarcity forces businesses to prioritize the production of certain goods and services.

The New York State Legislature approved a grant to the city of Buffalo, permitting the city to update its bridges, highways, and sidewalks. The effect of this grant will MOST LIKELY be:

• A decrease in economic growth because the road will close during construction.
• An increase in economic growth because the investment in infrastructure will create new jobs.
• A decrease in unemployment because people will get jobs elsewhere while the city is under construction.
• An increase in unemployment because updated infrastructure will result in fewer jobs in highway repair.

A popular social media influencer posts a series of videos promoting a new skin care product. What economic effect is this most likely to have?

• Increased demand for the skin care product.
• Decreased demand for the new skin care product.
• Decrease in price for the new skin care product.
• Decreased product awareness.

In December 1913, Henry Ford began using moving assembly lines to manufacture automobiles. What was the economic impact of this technological and industrial innovation?

• Increased speed and efficiency led to the growth of the manufacturing sector.
• The ability to divide labor and tasked increased the demand for skilled workers.
• Increased costs of production led to higher automobile prices for consumers.
• The decline in the quality of automobiles reduced demand for the products.

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