Economic Concepts Quiz

What is the difference between a want and a need?

• a) Wants are things we must have; needs are things we desire.

• b) Wants are things we desire; needs are essential for survival.

• c) Wants and needs are the same thing.

Ice cream, bicycles, and books are examples of:

• a) Wants

• b) Needs

• c) Services

If a toy becomes very popular, what might happen to its price?

• a) It goes up

• b) It goes down

• c) The price stays the same.

What is bartering?

• a) Buying and selling goods with money.

• b) Exchanging goods or services without using money.

• c) Saving money in a piggy bank.

What is the name of the paper money issued by the government?

• a) Coins

• b) Checks

• c) Currency

If you put your allowance in a piggy bank, are you:

• a) Saving

• b) Spending

• c) Donating

What do we call a person who starts and runs their own business?

• a) Employee

• b) Entrepreneur

• c) Customer

Why does the government collect taxes?

• a) To buy toys for kids

• b) To provide public services like schools and roads

• c) To give everyone free candy

When two countries exchange goods and services, it is called:

• a) Macroeconomics

• b) Bartering

• c) International trade

What is the term for the next best alternative that must be given up when a choice is made?

• a) Opportunity cost

• b) Money cost

• c) Trade-off