Economic Concepts Test Review

Jane is going to do her monthly grocery shopping at the local grocery store. She tries to do the majority of her shopping around her payday to supply her family with the food for their meals for basic survival. She is fulfilling her family’s

• Values

• Wants

• Needs

• Goals

Johnny wants to go out with his buddies this weekend. They plan to attend the homecoming football game on Friday night, which has a $5.00 admission fee. They plan on meeting at McDonald’s to grab a bite to eat for the game, which is normally about $7.00. They want to go see the new release of a movie on Saturday night. The movie tickets are $10.00 and the popcorn snack special is $10.00. One person is driving so they are all chipping in $3.00 for gas. Johnny only has $25.00. This is an example of

• Equilibrium pricing

• Demand

• Supply

• Scarcity

Which of the following is NOT one of the three key economic questions?

• What goods and services should be produced?

• For whom should goods and services be produced?

• When should the production of goods and services take place?

• How should goods and services be produced?

He is called the Father of Modern Economics because he is responsible for popularizing many of the ideas that underpin the school of thought that became known as classical economics. Mark only one oval.

• Adam Smith

• Newt Gingrich

• Thomas Jefferson

• Ronald Regan

A market economy is one in which. Mark only one oval.

• Buyers and sellers operate according to government guidelines.

• Individuals are free to engage in business transactions.

• Stores stay open until late at night.

• There is a central market committee that solves problems.

Members of a family might not be able to afford the things they want because of an economic factor called. Mark only one oval.

• The basic economic problem or scarcity

• The family economic problem or bankruptcy

• Multiple greed

• Human desires

Raw materials found on or in the earth are called. Mark only one oval.

• Capital resources

• Human Resources

• Entrepreneurship

• Natural Resources

Which of the following describes a situation in which scarcity can be a problem? Mark only one oval.

• A city wants to give firefighters a large increase in pay.

• A business wants to enlarge its plant.

• A family wants to go on an extended vacation.

• All of the above.

• None of the above.

An economic system in which the government makes decisions about what and how much is to be produced is a. Mark only one oval.

• Mixed economy

• Command economy

• Market economy

• Traditional economy

The means through which goods and services are produced are. Mark only one oval.

• Factors of Production

• Economic Resources

• Productive Resources

• All of the above.

• None of the above.