Basic business Concepts Quiz

What are the three basic needs of people?

• Food, water, shelter

• Food, clothing, shelter

• Food, medicine, housing

• Clothing, money, shelter

Activity that results in the satisfaction of our needs is called:

• Direct production

• Economic activity

• Specialization

• Barter

People are sometimes called “economic animals” because:

• They hunt for food

• They are always active

• They engage in economic activity

• They live in communities

Early people met all their needs by themselves. This is called:

• Barter

• Direct production

• Token money

• Specialization

A system where people only produced enough to survive is called:

• Surplus economy

• Money economy

• Subsistence economy

• Barter system

The term “hunter-gatherer” refers to:

• Early farmers

• People who hunted animals and gathered plants for food

• Traders who bartered goods

• People who built permanent houses

The development of farming allowed early people to:

• Spend less time searching for food

• Stop building houses

• Depend more on barter immediately

• Eliminate the need for tools

Building permanent homes and forming primitive communities became possible because:

• People learned to barter

• People produced a surplus

• People learned to farm and keep animals

• Money was invented

Producing extra goods beyond what was needed is called:

• Exchange rate

• Surplus

• Token money

• Direct production

The exchange of goods without money is known as:

• Specialization

• Direct production

• Barter

• Surplus trade