Economics Quiz

Using the information in the table, create a supply and demand graph. On the graph indicate the market equilibrium price with an X.

In a free market society, the answer to the question about how much to produce is determined by —

• census data

• profit projections

• consumer demand

• government quotes

Which factor of production completes the excerpt?

• Laborers

• Landlords

• Entrepreneurs

• Capital investors

On a supply and demand graph, supply will decrease and shift to the left when which of the following happens?

• The number of firms leaving the industry increases.

• There are fewer government regulations in place.

• The total cost of inputs decreases.

• Production taxes decline over a short period of time.

Which of the following is a basic characteristic of all economic systems?

• Price controls

• Wage incentives

• Small business owners

• Distribution of goods and services

With regard to food and clothing in the production-possibilities curve above, what does Point B represent?

• A combination that can be attained only if all resources are used

• A combination that is impossible for this country to attain under current conditions

• A combination that can be attained only if a technological advance occurs

• A combination that can be attained without using all the country's resources

Based on the information in the excerpt, what economic policy distinguishes Sweden’s free market economy from that of the United States?

• Sweden limits government spending

• Privatization of the social welfare system

• High levels of administrative inefficiency

• Government funding of education and health care

What basic economic question is addressed in the press release?

• How to produce?

• What to produce?

• For whom to produce?

• How much to produce?

In comparison to the U.S. free enterprise system the economy of China is characterized by a lack of —

• competition

• well-paying jobs

• trade incentives

• manufacturing industries

Paying rent instead of purchasing tickets to a concert is an example of —

• scarcity

• property rights

• opportunity cost

• circular flow model