Economics Quiz L1

What is the study of how individuals, families, businesses, and societies use limited resources to fulfill their unlimited wants?

• Scarcity

• Macroeconomics

• Economics

• Microeconomics

Which term describes the condition of not being able to have all the goods and services one wants because wants exceed what can be made from all available resources?

• Trade-off

• Scarcity

• Opportunity cost

• Productivity

What are tangible objects that can satisfy people’s wants or needs called?

• Goods

• Labor

• Capital

• Services

What is the value of the next best alternative given up for the alternative that was chosen?

• Opportunity cost

• Hypothesis

• Economic model

• Trade-off

Which branch of economic theory deals with behavior and decision making by small units such as individuals and firms?

• Microeconomics

• Entrepreneurship

• Macroeconomics

• Economy

What is the term for the study of the overall aspects and workings of a national economy?

• Microeconomics

• Macroeconomics

• Econometrics

• Economic theory

Which term refers to the tools, equipment, machinery, and factories used in the production of goods and services?

• Labor

• Capital

• Goods

• Services

What is the term for the human effort used to produce goods and services?

• Labor

• Capital

• Entrepreneurship

• Resources

What is the term for the financial gain received by selling something for more than its cost?

• Revenue

• Profit

• Investment

• Income

Which economic principle states that as the price of a good or service increases, the quantity demanded decreases, and vice versa?

• Law of Supply

• Law of Demand

• Equilibrium

• Market Price