Economics Basics Quiz

What is economics?

• The performance of duty or work for another person

• An organized money system

• The study of how people meet their wants and needs

• The careful and wise use of resources

What are goods?

• Physical products

• Helpful or valuable actions

• The cost of what you have to give up

• The difference between the amount earned and the amount spent

What are services?

• Physical products

• Helpful or valuable actions

• The difference between the amount earned and the amount spent

• The cost of what you have to give up

Who are producers?

• People who create or produce goods or provide services

• The cost of what you have to give up

• Those who buy goods and services

• The difference between the amount earned and the amount spent

Who are consumers?

• The difference between the amount earned and the amount spent

• Those who buy goods and services

• The cost of what you have to give up

• People who create or produce goods or provide services

What is profit?

• The careful and wise use of resources

• The study of how people meet their wants and needs

• A financial gain

• The performance of duty or work for another person

What is opportunity cost?

• The study of how people meet their wants and needs

• The cost of what you have to give up

• The careful and wise use of resources

• A financial gain

What is a traditional economy?

• Economic decisions are based on group's customs and values and often using bartering and trading.

• Government closely controls the economy

• Based on principles of freedom, competition and profit

• The different ways that people make and distribute goods and services

What is a market economy?

• The different ways that people make and distribute goods and services

• People make economic decisions based on group's customs and values

• Based on principles of freedom, competition and profit

• Government closely controls the economy

What is a command economy?

• Government closely controls the economy

• Based on principles of freedom, competition and profit

• People make economic decisions based on group's customs and values

• The different ways that people make and distribute goods and services