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How do we decide what to produce?

Total questions: 12

Worksheet time: 14mins

Name
Class
Date
1.

When goods or services are hard to get or find, we say they are......

a)

easy.

b)

scarce.

c)

empty.

d)

plentiful.

2.

When goods, services or resources are scarce, decisions have to be made about who will have them first. We call this process.......

a)

allocation.

b)

consumers.

c)

producers.

d)

economics.

3.

Economic resources are the goods or services available to people and businesses that are used to makes products we need and want.

a)

True

b)

False

4.

The price of a product rises. What will happen to the demand for its complement?

a)

It will contract

b)

It will extend

c)

It will decrease

d)

It will increase

5.

In what type of economy allocation do government officials determine how to produce goods/services?

a)

Government

b)

Command

c)

Market

d)

Traditional

6.

In what type of economy allocation do individuals and firms determine what will be produced?

a)

Government

b)

Command

c)

Market

d)

Traditional

7.

Which group do incentives influence to change their behavior?

a)

Buyers

b)

Sellers

c)

Both buyers and sellers

d)

None of these answers.

8.

When price increases, demand....

a)

increases

b)

decreases

9.

Which condition would lead to the highest prices?

a)

Low supply, high demand

b)

High supply, high demand

c)

High supply, low demand

d)

Low supply, low demand

10.

In a market, price is determine by the interaction of:

a)

inputs and outputs

b)

supply and demand

c)

push and pull factors

d)

demand and means on distribution

11.

If demand for a product increases beyond the ability of produces to supply the product, what will happen to the price of the product?

a)

the price will increase

b)

the price will decrease

c)

the prices will stay the same

d)

the price will decrease until producers can make more

12.

What is government intervention?

a)

taxes and subsidies

b)

is any action carried out by the government or public entity that affects the market economy

c)

when employees of the government decide to take action after contemplation whilst creating economic models to predict market economy

d)

a consequence of an industrial or commercial activity which affects other parties in turn being reflected in market prices