Economics Quiz

Which of the following is one of the three basic economic questions?

• What should be taxed?

• How can income be shared?

• What goods and services should be produced?

• How is a budget created?

Which type of economic system has consumers and producers make economic decisions?

• traditional economy

• market economy

• command economy

• mixed economy

Which type of economic system has the highest level of government control?

• traditional economy

• market economy

• command economy

• mixed economy

Which of the following is a feature of a good budget?

• money reserved for saving

• income that is less than its expenses

• high use of credit

• economic incentives

How do companies make a profit?

• They try to increase the cost of making goods and decrease money earned.

• They try to decrease the cost of making goods and increase money earned.

• They try to decrease the cost of making goods and decrease money earned.

In a growing economy, prices may increase over time. This general increase in prices is called

• inflation

• deflation

• recession

A decline in production over six or more months in a row is known as a

• inflation

• deflation

• recession

Tia calculates the cost of supplies, help, and electricity to find the minimum cost per cupcakes. She sees supplies will cost $.50, help will cost $1.00 and electricity costs $.75. What would be the minimum price per cupcake?

Pat's Pizza opens up in Jenkintown. Kate's Pizza opens up across the street. The marginal cost (minimum) for pizza is $6.00. Pat's Pizza offers 1 cheese pizza for $8.00. In order to successfully compete with Pat, What should Kate charge for 1 cheese pizza?

Basic Value

• Economics

• Demand

• Principle

• Minimum