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- 1. Multiple Choice
Which is a basic economic question that must be answered by all economic systems?
What will be the share of profits that go to businesses?
What will be the amount of the minimum wage for workers?
How will goods and services be produced?
How will government collect income taxes?
- 2. Multiple Choice
An example of a capital good needed by someone who builds new homes is a
faucet
screwdriver
doorbell
ceiling fan
- 3. Multiple Choice
Bill Gates and Henry Ford are examples of entrepreneurs because
They were immigrants who came to America to start families
They were workers on the most famous assembly line
They were willing to take a chance to start a business and make a profit
They co-wrote the book The Wealth of Nations
- 4. Multiple Choice
The factors of production are used for
The creation of goods and services
A business model for entrepreneurs
Practicing good environmental choices
Farming practices
- 5. Multiple Choice
Which of the following is a market economy primarily based on?
Capitalism and individual choice
Traditionalism and command
Incentives and traditionalism
Informed judgments
- 6. Multiple Choice
Capitalism is best supported by the ideas of _______________
Adam Smith
Karl Marx
Dr. Seuess
William Gates
- 7. Multiple Choice
Communism is best supported by the idea of _____________
Adam Smith
Karl Marx
Dr. Suess
Jesus Christ
- 8. Multiple Choice
A carpenter purchasing his own tools is an example of _________________
Capital Resources
Entrepreneurship
Human Resources
Natural Resources
- 9. Multiple Choice
Economics is best described as ___________________
the part of economics concerned with single factors and the effects of individual decisions
the branch of knowledge concerned with the production, consumption, and transfer of wealth.
the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.
Something I am forced to learn that makes my head want to explode
- 10. Multiple Choice
The law of supply states that:, if nothing else changes.....
Firms are more likely to produce goods when theyare sold at a higher price
Firms will only produce goods sold at lower prices
Consumers are more willing to purchase items that are sold at a high price
- 11. Multiple Choice
The law of demand states, that if nothing else changes.....
Consumers are more willing to purchase items that are sold at a lower price
Firms will only produce goods sold at lower prices
Consumers are more willing to purchase items that are sold at a high price
- 12. Multiple Choice
Equilibrium is
The price point where supply equals demand
The price point where there is a surplus of an item
The price point when there is a shortage of an item
BOGO baby!!!
- 13. Multiple Choice
Which situation describes a good being "elastic"
regardless of the supply or demand of an item, the price stays the same
if there is a shift in demand or supply there is an effect on the price of a good
Some goods are produced in limited supply
Some goods do not have a large demand
- 14. Multiple Choice
A BOGO (buy one get one free) sale is an example of which of these terms?
Opportunity Cost
trade off
Incentive
Marginal Cost
- 15. Multiple Choice
Which of the following best describes the relationship between factors of production and people’s wants?
Factors and wants are both limited
Factors are limited and wants are unlimited
Factors and wants are both unlimited
Factors are unlimited and wants are limited
- 16. Multiple Choice
Which of the following is NOT one of the basic economic questions?
How to produce?
Why to produce?
What to produce?
For whom to produce?
- 17. Multiple Choice
The concept that the government should not interfere with business is known as
Laissez-faire
Invisible hand
Demand concept
Supply Systems
- 18. Multiple Choice
A mixed economy is made up of both
Traditional and market economies
Traditional and Command economies
Market and command economies
Command and conventional
- 19. Multiple Choice
Adam Smith proposed his theory of the “invisible hand” guiding consumers to make the right economic decisions in which economy?
Traditional
Mixed market
Market
Command
- 20. Multiple Choice
Where do people spend their money?
Factor Market
Government Sector
Product Market
Business Sector
- 21. Multiple Choice
Capitalism thrives on competition. What is the main benefit of competition?
Lower prices
better decision making
a successful democracy
Marginal cost and benefits
- 22. Multiple Choice
Which of the following is a market economy primarily based on?
Capitalism and free enterprise
Traditionalism and command
Incentives and traditionalism
Informed judgments
- 23. Multiple Choice
Demand tends to deal with what person?
Producer
Supplier
Retailer
Consumer
- 24. Multiple Choice
When there is equilibrium, the market price will tend to stay constant until either supply or demand changes. If there is a _____ the price will go down.
Surplus
Shortage
Supply
Demand
- 25. Multiple Choice
Supply tends to deal with what person?
Consumer
Producer
Government
Customer
- 26. Multiple Choice
A shortage of a good involves which of the following scenarios?
more buyers than goods
more goods than buyers
More sellers than buyers
More buyers than sellers
- 27. Multiple Choice
Which type of business allows stockholders to own a share in a company?
Sole proprietorship
Cooperative
Corporation
Partnership
- 28. Multiple Choice
Which two types of businesses have unlimited liability?
Corporation and sole proprietorship
Corporation and partnership
Partnership and sole proprietorship
Cooperative and partnership
- 29. Multiple Choice
One advantage to having this type of business is the ability to share the cost of starting a business
Partnership
Sole Proprietorship
Cooperative
Corporation
- 30. Multiple Choice
Which of these is illegal in the United States?
Oligopoly
Cooperative
Monopoly
Natural Monopoly
- 31. Multiple Choice
What do monopolies eliminate from the decisions of the consumers?
Demand
Supply
Choice
Opportunity Cost
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