Economic Basics Quiz

What is supply and demand?

• Supply and demand is an economic model that explains the relationship between the availability of a product or service (supply) and the desire or need for that product or service (demand).

• Supply and demand is a political theory that explains the distribution of resources in a society.

• Supply and demand is a mathematical equation used to calculate the price of a product.

• Supply and demand is a marketing strategy used to manipulate consumer behavior.

What is opportunity cost?

• The value of the least desirable alternative

• The cost of a decision

• The cost of an opportunity

• The value of what you gave up in making a decision.

What are the types of economic systems?

• The types of economic systems are agricultural, industrial, and service-based.

• The types of economic systems are capitalist, socialist, and communist.

• The types of economic systems are democratic, authoritarian, and totalitarian.

• The types of economic systems are traditional, command, market, and mixed.

What are the factors of production?

• Land, labor, capital, and resources

• Land, labor, capital, and management

• Land, labor, capital, and technology

• Land, labor, capital, and entrepreneurship

What is the role of government in the economy?

• The role of government in the economy is to control all aspects of production and distribution.

• The role of government in the economy is to completely stay out and let the free market regulate itself.

• The role of government in the economy is to prioritize the interests of corporations over the well-being of its citizens.

• The role of government in the economy is to provide stability, regulate markets, promote economic growth, and ensure the well-being of its citizens.

What happens to price when demand increases and supply decreases?

• The price remains the same.

• The price fluctuates.

• The price increases.

• The price decreases.

Which economic system is characterized by private ownership of resources and competition in the market?

• capitalism

• feudalism

• socialism

• communism

Which factor of production refers to the physical and mental effort put into producing goods and services?

• entrepreneurship

• labor

• capital

• land

Which economic system is characterized by government ownership of resources and central planning?

• socialism

• fascism

• communism

• capitalism

What is the total value of all goods and services produced in a country in a given year?

• Gross National Product (GNP)

• Net Domestic Product (NDP)

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)