Economics Quiz

Sal was promised a new vehicle for his 18th birthday. He was given a choice between a truck and a car. Sal chose the truck because he was planning to go 4-wheeling over the summer. The car represents which economic principle?

• Opportunity cost

• Supply

• Demand

• Resources and Choice

Consumer preference and price determine

• What is produced

• What is purchased

• Price

• Opportunity cost

Devon is digging a hole for the basement of a new home. The digging has left large piles of dirt on the property and he must use a bulldozer to move the dirt. The bulldozer is an example of what type of resource.

• Entrepreneurship

• Human

• Natural

• Capital

Each of us is a consumer because we

• Provide skills and labor to produce goods

• Use a barter system instead of money

• Live in a democratic society

• Purchase goods and services

While on vacation, Adam went to the store and found that there was only one brand of chips, hot dogs, bread, and milk. Adam is most likely visiting a country that is exercising which type of economy?

• Free market

• Mixed

• Traditional

• Command

Which answer choice below best describes the rivalry between producers/sellers of a good or service that results in better quality goods and services at a lower price.

• Profit

• Consumer sovereignty

• Competition

• Scarcity

Sam and Son, Incorporated is a manufacturing business that acts as a legal person regardless of the number of owners in the company. What type of business organization is Sam and Son?

• Corporation

• Proprietorship

In 1978, two friends decided to take a risk and open an ice cream business in Vermont. Their ice cream became popular and today Ben & Jerry's has become a worldwide business. What type of business ownership did Ben & Jerry's start out as?

• Proprietorship

• Partnership

• Corporation

• Competition

Businesses sell ________ to households and governments.

• Products

• Shares

• Resources

• Services

Which of the following earns interest?

• Cash

• Credit cards

• Money in a savings account

• Stocks purchased through a broker