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Economics Basics Test

Total questions: 20

Worksheet time: 19mins

Name
Class
Date
1.

What is an entrepreneur?

a)

a worker

b)

a business owner

c)

an interpreter

d)

a raw material

2.

All of the following are examples of natural resources EXCEPT

a)

land.

b)

water.

c)

gold.

d)

paper.

3.

The main goal of every business is to

a)

produce quality goods.

b)

make money.

c)

produce a large amount of goods.

d)

ensure their customers are satisfied.

4.

What is another term for buyers?

a)

consumers

b)

employees

c)

entrepreneurs

d)

businesss

5.

Which of these is NOT an example of a service?

a)

babysitter

b)

auto mechanic

c)

landscaper

d)

talking robot

6.

Scarcity occurs when everyone has enough resources to meet their needs and wants.

a)

True

b)

False

c)

Sometimes true

7.

What type of economic system did humans use first, before money was invented?

a)

command economy

b)

market economy

c)

mixed economy

d)

traditional economy

8.

Which of the following is NOT an example of capital?

a)

assembly line worker

b)

delivery truck

c)

office supplies

d)

factory building

9.

Which of the following is NOT a factor of production?

a)

capital

b)

labor

c)

natural resources

d)

services

10.

This term refers to how much people want a good/service and how much they are willing and able to pay for it.

a)

demand

b)

supply

c)

scarcity

d)

economics

11.

What economic principle says that, in general, businesses are more willing to make more of a good/service if the price of that good/service is higher?

a)

Law of Demand

b)

Law of Supply

c)

Scarcity

d)

Profit

12.

This type of economy has the government controlling all aspects of the economy.

a)

traditional economy

b)

market economy

c)

command economy

d)

mixed economy

13.

Which law says that as the price of a good goes down, consumers are more willing to buy?

a)

Law of Supply

b)

Law of Demand

c)

Factor of Production

d)

Scarcity

14.

Which type of economy is driven by supply and demand, and competition, and includes NO government control/ownership?

a)

command economy

b)

market economy

c)

mixed economy

d)

traditional economy

15.

Which of the following best describes labor as a factor of production?

a)

The natural resources used in production.

b)

The human effort used in the creation of goods and services.

c)

The machinery and tools used in production.

d)

The financial capital invested in a business.

16.

The value of all possessions a person or country has is called

a)

economy

b)

money

c)

wealth

d)

power

17.

What is currency?

a)

type of money

b)

type of resource

c)

type of profit

d)

type of capital

18.

Which of these is NOT an example of a good?

a)

trucks

b)

houses

c)

auto repair

d)

computers

19.

This is a medium of exchange; it has value and is measurable

a)

barter

b)

money

c)

economy

d)

capital

20.

What is a profit?

a)

money left after paying expenses

b)

money made from sales

c)

money a business has lost

d)

money used to pay expenses