Economics Quiz

Economics is the study of how people:

• Make choices with limited resources

• Spend all their money

• Make laws

• Travel around the world

Which of the following is an example of a need?

• Designer shoes

• Food

• Video game

• Jewelry

Scarcity means:

• Resources are unlimited

• Wants are limited

• Resources are limited while wants are unlimited

• Everyone is rich

Opportunity cost is:

• The amount of money earned

• The next best alternative given up

• The price of a product

• A government tax

Which is NOT one of the factors of production?

• Land

• Labor

• Capital

• Advertisement

Labor refers to:

• Natural resources

• Human effort used in production

• Machines and tools

• Business profit

Which of the following is a capital resource?

• Farmer

• Water

• Tractor

• Forest

Land as a factor of production includes:

• Workers

• Money

• Natural resources

• Factories

Entrepreneurship is:

• Managing resources and taking risks to start a business

• Buying products

• Working in a factory

• Saving money in a bank

Which of the following is a service?

• Laptop

• Rice

• Haircut

• Cellphone