Introduction to Economics Quiz

What is the economic problem?

• Surplus of services

• Abundance of goods

• Unlimited resources

• Scarcity of resources

Which of the following is NOT a category of productive resources?

• Capital goods

• Financial resources

• Natural resources

• Human resources

What does opportunity cost refer to?

• The cost of production

• The value of the best alternative passed up

• The total cost of goods

• The cost of resources

Which type of economy is characterized by private ownership of all resources?

• Mixed economy

• Pure market economy

• Pure command economy

• Traditional economy

What is a key assumption about behavior in economic theory?

• People have unlimited resources

• People act in rational self-interest

• People do not make choices

• People act irrationally

Which of the following is an example of a renewable resource?

• Natural gas

• Forests

• Oil

• Coal

What is the primary role of households in the economy?

• To supply goods and services

• To demand goods and services

• To produce capital goods

• To regulate the market

What is the goal of economic theory?

• To complicate economic models

• To make predictions about the real world

• To eliminate all economic choices

• To maximize government control

Which of the following is a problem with pure market economies?

• Overproduction of public goods

• Difficulty enforcing property rights

• Excessive government intervention

• High levels of employment

What are the three economic questions all economies must answer?

• When, where, and why

• Who, what, and where

• What, when, and how

• What, how, and for whom