SOL CE 11: Basics of Economics

A restaurant is in the process of opening. It has to first purchase stoves, plates, utensils, and lighting. These products serve as what type of resource for the restaurant?

• Capital

• Natural

• Human

• Entrepreneurial

The interaction of supply and demand determines what?

• The quality of goods and services.

• The taxes placed on goods and services.

• The price of goods and services.

• The choices we have in goods and services.

Products such as fidget spinners, beanie babies, and hula hoops were extremely popular at one time and therefore were made in large number. However the demand for each has mostly disappeared so very few a made today. This is due to what principle?

• Proprietorship

• Consumer Sovereignty

• Due Process

• Opportunity Cost

The Equilibrium Price is the ...

• The lowest that an item will sell for.

• The cost of the item to be made

• The price at which supply and demand meet.

• The most that the government allows to be charged for that item.

All economies have to answer three basic questions. Which of these is not one of them?

• What goods and services will be produced?

• Who will produce the goods and services?

• For whom are the goods and services being produced?

• How much will the goods and services cost?

The type of economy that a nation has is based upon what factor?

• The price of goods and services.

• The number of businesses that are operating.

• The size of the population.

• The amount the government is involved.

The Law of Demand states that...

• Individuals will demand more of a good or service when prices are low.

• Individuals will demand less choices in goods or services.

• Individuals will demand less of a good or service when prices are low.

• Individuals will demand more of a good or service when quality is low.

What form of economy is based on profit, competition, and consumer sovereignty? The government plays little to no role in this economy.

• Free Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy

Every economy must face the problem of...

• Profit

• Consumer Sovereignty

• Competition

• Scarcity

What form of economy has shared decision-making between individuals and the government? Individuals plan for the private sector, while the government plans for the public sector.

• Free Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy