Economics Quiz

What is the Law of Supply?

• As price increases, quantity supplied increases.

• As price decreases, quantity supplied increases.

• As price increases, quantity demanded increases.

• As price decreases, quantity demanded increases.

What is the Law of Demand?

• As price increases, quantity demanded increases.

• As price decreases, quantity demanded decreases.

• As price increases, quantity demanded decreases.

• As price decreases, quantity supplied increases.

What does a Demand Curve represent?

• The relationship between price and quantity supplied.

• The relationship between price and quantity demanded.

• The relationship between income and consumption.

• The relationship between resources and goods.

What does a Supply Curve represent?

• The relationship between price and quantity supplied.

• The relationship between price and quantity demanded.

• The relationship between income and consumption.

• The relationship between resources and goods.

What is the Circular Flow of Income Model?

• A model showing the flow of money in a closed economy.

• A model showing the flow of income, resources, goods, and services.

• A model showing the flow of goods only.

• A model showing the flow of resources only.

What are the components of income in the Circular Flow of Income Model?

• Wages, rent, interest, profit, dividends.

• Goods, services, resources, consumption.

• Labor, land, capital, enterprise.

• Spending, saving, investing, borrowing.

What are considered resources in the Circular Flow of Income Model?

• Goods and services.

• Wages, rent, interest, profit.

• Labor, land, capital, enterprise.

• Income and consumption.

What does consumption refer to in the Circular Flow of Income Model?

• Spending on goods and services.

• Earning income from resources.

• Saving money for future use.

• Investing in capital goods.

In the Circular Flow of Income Model, who provides resources?

• Firms/Business Sector.

• Government Sector.

• Household Sector.

• Foreign Sector.

In the Circular Flow of Income Model, who provides goods and services?

• Household Sector.

• Firms/Business Sector.

• Government Sector.

• Foreign Sector.