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Unit 1 Economics Quiz

Total questions: 25

Worksheet time: 6hrs 15mins

Name
Class
Date
1.

Define Economics

a)

How governments spend money

b)

The study of how people satisfy needs and wants

c)

The study of money

d)

The study of how money is used

2.

Define needs

a)

Things that make our lives better

b)

Things that make things easier

c)

Things that help us live

d)

Things we must have to survive

3.

Which of the following is an example of a want

a)

Water

b)

House

c)

New Car

d)

Food

4.

Define Scarcity

a)

A limited amount of resources to meet unlimited wants and needs

b)

A small amount of money

c)

Not a lot of something

d)

A lot of a certain thing

5.

What are the three causes of scarcity

a)

Personal Perspective, Lack of Money, Lack of Use for Product

b)

Decrease in Demand, Personal Perspective, Lack of Money

c)

Personal Perspective, Poor Distribution of Products, Increase of Demand

d)

Increase of Demand, Good Distribution of Products, Personal Perspective

6.

What is one of the ways to deal with Scarcity

a)

Doing without something

b)

Don't do anything and let scarcity happen

c)

Create less resources

d)

Make more money

7.

Define Real Costs

a)

How much money you spend

b)

What you gain from something

c)

The benefits of something

d)

All resources used to produce a good or service

8.

Define Trade Offs

a)

When you choose between 2 possible uses for a resource

b)

The resources used to produce a good or service

c)

The Value of time, money, goods and services given up in a economic choice

d)

Not using resources

9.

Define Opportunity Costs

a)

What you gain from a trade off

b)

The value of time, money, goods, and services given up in an economic choice

c)

How we make better use of our resources

d)

Profit

10.

Which of the following is NOT a good

a)

Vaccum

b)

Water Bottle

c)

Mechanic

d)

Tool

11.

Which of the following is NOT a service

a)

Teaching

b)

NFL Quarterback

c)

Mechanic

d)

Water

12.

What is 1 of the 4 basic economic questions

a)

Who are the goods and services produced for?

b)

Why produce them?

c)

What produces them?

d)

How much will it cost?

13.

Define Resources

a)

How much it costs to make goods

b)

Materials that goods and services are made from

c)

What you get out of goods and services

d)

What credentials you need to get a certain job

14.

Which of the following is NOT one of the three types of resources

a)

Human

b)

Natural

c)

Artificial

d)

Capital

15.

Which of the following is a example of a traditional economy

a)

Amish

b)

China

c)

America

d)

England

16.

Which of the following is an example of a common economy

a)

Japan

b)

America

c)

China

d)

Canada

17.

Which of the following is an example of a free market economy

a)

China

b)

Russia

c)

Amish

d)

Japan

18.

What is a mixed economy

a)

A economy with different types of money

b)

A old civilization

c)

A country with lots of diversity

d)

A economy that has a mix between 2 economies: ex a country that has traits of both free market and command economies

19.

What are the 3 features of American Command Economy

a)

Government regulation of some business practices, Government limits certain choices, Government provides aid to the needy

b)

Government limits certain choices, I provide aid to the needy, I regulate business practices

c)

I provide aid to the needy, I regulate business practices, I put limits on certain choices

d)

Government provides for needy, Government limits certain choices, I regulate business practices

20.

Define Economic Freedom in American Free Market Economy

a)

No one has the right to choose

b)

Government has the right to choose

c)

Individuals have the right to choose

d)

Government and Individuals have the right to choose

21.

Define Competition in American Free Market Economy

a)

Government is the producer of goods and services

b)

No producer of goods or services

c)

Only one producer of goods or services

d)

More than one producer of goods/services insures choice

22.

Define Private Property in American Free Market Economy

a)

The people can't own their own property

b)

No one owns property

c)

Government owns all property

d)

Individuals have the right to own their own property, including businesses

23.

Define Self-Interest in American Free Market Economy

a)

Individuals make decisions based on what's best for their government

b)

Government makes decisions based on what is best for the government

c)

Individuals make decisions based on what is best for them

d)

Government makes decisions based on what's best for their people

24.

Define Voluntary Exchange in American Free Market Economy

a)

Individuals may freely buy and sell goods

b)

Individuals can only buy and sell goods if the government allows them to

c)

Individuals can only buy goods but can't sell them

d)

Individuals can only buy goods if they come from the government

25.

Define Profit Motive in American Free Market Economy

a)

Individuals are forced by government to make profit

b)

Individuals are driven by a desire to profit

c)

Individuals don't have any drive because government gets the profit

d)

Individuals are forced to make profit for the government