Economics: Basic Overview Quiz

What happens according to the Law of Supply when the price of a good increases?

• Producers are willing to supply less.

• Consumers want to buy more.

• Producers are willing to supply more.

• Consumers want to buy less.

What is the equilibrium price?

• The price where the amount supplied is less than the amount demanded.

• The price where the amount supplied equals the amount demanded.

• The price where the amount supplied is more than the amount demanded.

• The price where the demand is zero.

What factor generally leads to higher wages for workers?

• Lower skill level

• Higher skill level

• Fewer job opportunities

• Economic recession

What can cause wages to stay lower despite high demand for jobs?

• Many qualified workers

• Few qualified workers

• High economic growth

• High skill level

What is one effect of higher production costs on goods?

• Prices decrease

• Prices increase

• Prices remain stable

• Prices become unpredictable

What is the Law of Demand?

• As the price of a good increases, consumers want to buy more.

• As the price of a good decreases, consumers want to buy more.

• As the price of a good decreases, producers supply more.

• As the price of a good increases, producers supply less.

What is one effect of economic growth on job availability?

• It reduces high-demand jobs

• It creates more high-demand jobs

• It has no effect on jobs

• It makes jobs obsolete

What is one of the roles of government in a capitalist economy related to competition?

• Regulation

• Inflation

• Taxation

• Privatization

What is an example of a public good funded by the government?

• Private schools

• Roads

• Shopping malls

• Restaurants

Which role involves using policies to prevent extreme economic downturns?

• Regulation

• Stabilization

• Privatization

• Deregulation