CE 11a Economics Quiz

What is scarcity?

• The inability to satisfy all wants at the same time

• The amount of money exchanged for a good or service

• The combining of resources to make goods or provide services

• The selection of an item or action from a set of possible alternatives

What is opportunity cost?

• The inability to satisfy all wants at the same time

• The amount of money exchanged for a good or service

• What is given up when a choice is made

• The selection of an item or action from a set of possible alternatives

What are the types of resources used in the production of goods and services?

• Natural, human, capital, and entrepreneurship

• Scarcity, resources, choice, and opportunity cost

• Supply and demand, production, and consumption

• Price, incentives, and ownership of resources

What determines the price of a good or service?

• The amount of money exchanged for a good or service

• The interaction of supply and demand

• The selection of an item or action from a set of possible alternatives

• The combining of resources to make goods or provide services

What is the amount of a good or service that consumers are willing and able to buy at a certain price called?

• Supply

• Demand

• Production

• Consumption

What is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services called?

• Supply

• Demand

• Production

• Consumption

What is the using of goods and services called?

• Supply

• Demand

• Production

• Consumption

What type of economy relies on economic decisions based on custom and historical precedent?

• Traditional economy

• Command economy

• Free market economy

• Mixed economy

What type of economy has minimal government involvement and individual choice?

• Traditional economy

• Command economy

• Free market economy

• Mixed economy

What type of economy has both private and public sectors with government involvement greater than a free market economy but less than a command economy?

• Traditional economy

• Command economy

• Free market economy

• Mixed economy