Economics Quiz

What is the definition of supply?

• the desire to buy goods

• the amount of items available

• the price you pay for something

• the amount of money it costs to make something

Which of the following descriptions BEST explains supply and demand?

• A candy company makes one kind of candy bar. It never changes what it makes.

• A candy company only makes the type of candy bars that the government tells it to make.

• A candy company went out of business because their chocolate supplier went out of business.

• A candy company changes the kind of candy bars they make depending on what kind of candy bars kids are buying.

In a market economy, what are prices based on?

• supply and demand

• the government's rules

• goods traded for services

• all products at the same price

How does the government pay for items such as public schools and libraries?

• taxes

• donations

• tuition and fees

• prints their own money

Which of the following is an example of a voluntary exchange?

• making your favorite candy at home

• buying candy at the candy store that offers a variety of choices

• buying candy from the government store that limits the types of candy

• not buying candy because the laws forbid candy from being sold where you live

How are police, fire, and military services related?

• They are all public services paid for with taxes.

• They are all private services paid for with taxes.

• They are all public services billed to individuals each time they use the services.

• They are all private services billed to individuals each time they use the services.

How does trade help both a producer and a consumer?

• Both make a lot of money by trading with each other.

• Consumers make more money by selling goods that producers want.

• Both get something they need in exchange for something they did not need.

• Producers make money by selling consumers something they do not want or need.

What word defines the idea of exchanging goods or services when a person needs or wants something?

• Money

• Taxes

• Trade

• Dependence

In a voluntary exchange system, what does the term interdependent mean?

• Dependent on others for goods

• Dependent on yourself for goods

• Dependent on your family for goods

• Dependent on the government for goods

Which of the following is the BEST example of depending on others?

• growing your own food

• owning a large piece of land

• moving west for farm land

• shopping at the grocery store