Quiz: The Three Basic Economic Questions

Which of the following is one of the three basic economic questions?

• How should goods and services be distributed internationally?

• What goods and services should be produced?

• What laws should regulate the economy?

• Which resources should be protected?

The question “How should goods and services be produced?” is mainly concerned with:

• The method of production

• Who consumes the product

• What goods to produce

• Government taxation

The question “Who consumes goods and services?” addresses:

• a. Distribution of resources

• b. Efficiency of production

• c. Freedom of choice

• d. Environmental protection

Which of the following is NOT an economic goal?

• Economic equity

• Economic efficiency

• Military conquest

• Economic freedom

Economic freedom means:

• Government makes all decisions

• People can make their own choices

• Businesses operate without rules

• Everyone has the same income

Economic equity refers to:

• Fairness in wealth and opportunity

• Unlimited production

• Growth and innovation

• Efficiency in using resources

Which goal is about using resources wisely?

• Economic growth

• Economic efficiency

• Federalism

• Equity

Growth and innovation are important because:

• They lower freedom

• They reduce living standards

• They improve living standards

• They increase taxes

Which of the following is an additional goal mentioned in the lesson?

• Protecting the environment

• Expanding military bases

• Increasing exports only

• Limiting employment

Full employment means:

• Every business is profitable

• All available workers have jobs

• Government owns all resources

• Only skilled workers are hired