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Economy: Markets Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is a market?

a)

A place where people meet for social gatherings

b)

A place where people go shopping for groceries

c)

A place where buyers and sellers exchange goods and services

d)

A place where people go to watch movies

2.

What are the factors of production?

a)

Books, clothes, and furniture

b)

Cars, computers, and smartphones

c)

Natural resources, labour, capital, and entrepreneurship

d)

Water, air, and sunlight

3.

What do natural resources refer to?

a)

Machines, tools, and buildings

b)

Human effort put into production

c)

Water, arable land, mineral deposits, and the environment

d)

Money and investments

4.

What does labour refer to?

a)

Machines, tools, and buildings

b)

Human effort put into production

c)

Water, arable land, mineral deposits, and the environment

d)

Money and investments

5.

What is entrepreneurship?

a)

People who invest in stocks

b)

People who work in offices

c)

People who take calculated risks and seize opportunities

d)

People who build machines

6.

What does capital comprise of?

a)

Machines, tools, and buildings

b)

Human effort put into production

c)

Water, arable land, mineral deposits, and the environment

d)

Money invested by owners into the business

7.

What is the price of labour in the factor market?

a)

Rent

b)

Wages and salaries

c)

Interest

d)

Profit

8.

What is the labour market?

a)

A market for buying and selling land

b)

A market for trading labour services

c)

A market for buying and selling capital

d)

A market for trading goods and services

9.

What is a financial market?

a)

A market for trading goods and services

b)

A market for buying and selling land

c)

A market for trading labour services

d)

A market for lending and borrowing to finance purchases

10.

What do households offer in the factor market?

a)

Machines, tools, and buildings

b)

Money and investments

c)

Natural resources, labour, capital, and entrepreneurship

d)

Goods and services

11.

What is the product market?

a)

A market for buying and selling land

b)

A market for trading labour services

c)

A market for trading goods and services

d)

A market where finished goods and services are bought and sold

12.

What determines the prices of factors in a factor market?

a)

Global trade agreements

b)

Weather conditions

c)

Government regulations

d)

Supply and demand

13.

Where do resource owners get money to buy goods and services?

a)

From government subsidies

b)

From selling their resources in the factor markets

c)

From borrowing money from banks

d)

From winning the lottery

14.

How are business firms connected to factor and product markets?

a)

They only operate in product markets

b)

They only operate in factor markets

c)

They sell in factor markets and buy in product markets

d)

They buy in factor markets and sell in product markets

15.

Why is interdependence important in a market economy?

a)

To increase government control

b)

To promote self-sufficiency

c)

To reduce competition

d)

To show how people specialize and trade in markets