Economics and Financial Literacy Test

An economic system is the social science that studies the production, distribution, and consumption of goods and services.

• True

• False

Renewable resources are always available or are naturally replaced in a relatively short time.

• True

• False

GDP measures the total value of all the goods and services produced in a country in a year.

• True

• False

Economy consists of the production and exchange of goods and services among a group of people.

• True

• False

The knowledge that allows an individual to make informed and effective decisions with all of their financial resources is called Financial Literacy.

• True

• False

There are three basic types of economic systems. Traditional economy, command economy, and market economy.

• True

• False

If you allocate a long period of time or even money in the expectation of some benefit in the future, this would be a type of investment.

• True

• False

A country that chooses to focus on producing only one or two products of resources are called specialized economies.

• True

• False

Market economy is one in which production of goods and services is decided by a central government.

• True

• False

A mixed economy is when goods and services are traded, but money is rarely exchanged.

• True

• False