Economic Concepts Quiz

What are rewards that are offered to try to get people to take certain economic actions?

• Incentives

• Penalties

• Taxes

• Subsidies

The wants and needs of people are restricted by _______________.

A clothing company manufactures 500 anniversary editions of a shirt. Since there are so few shirts to sell, what effect will this likely have on the price of the shirt?

• The price will likely increase due to limited supply.

• The price will likely decrease due to limited supply.

• The price will remain the same regardless of supply.

• The price will fluctuate randomly.

Which term refers to the government-set maximum price that can be charged for goods and services?

• Price Floor

• Price Ceiling

• Market Price

• Equilibrium Price

What is the minimum wage?

• $7.25 per hour

• $10.00 per hour

• $15.00 per hour

• $20.00 per hour

How are prices set in a competitive market?

• By government regulation

• By individual sellers

• By supply and demand

• By consumer preferences

When a business concentrates on goods or services that it can produce better than anyone, it is using:

• specialization

• diversification

• integration

• globalization

What term refers to having only one business produce a product and there is no substitute good?

• Monopoly

• Oligopoly

• Monopsony

• Perfect Competition

What are the 4 Factors of Production?

• Land, Labor, Capital, Entrepreneurship

• Land, Labor, Money, Management

• Resources, Labor, Capital, Innovation

• Land, Labor, Technology, Entrepreneurship

What is inflation?

• A decrease in the general price level of goods and services

• An increase in the general price level of goods and services

• A measure of economic growth

• A type of tax imposed by the government