Economics Test Study Guide

Which of the following terms refers to the amount of product producers are willing and able to offer at different prices?

• Demand

• Wants

• Supply

• Needs

Which of the following terms refers to the study of people’s choices and how they allocate limited resources to satisfy unlimited wants and needs?

• Incentives

• Opportunity Costs

• Scarcity

• Economics

Which of the following terms refers to the state in which people do not and cannot have enough income, time or other resources to satisfy every desire?

• Scarcity

• Supply

• Economics

• Needs

Which of the following terms refers to everything people desire beyond basic goods and services that meet their needs?

• Demand

• Wants

• Supply

• Needs

Which of the following descriptions best represents the basic problem in economics?

• There are unlimited resources and unlimited wants.

• There are limited resources and unlimited wants.

• There are limited resources and limited wants.

Which of the following terms best describes the process of changing resources into goods that satisfy the needs and wants of individuals and businesses?

• Consumption

• Production

• Surplus

• Shortage

Which of the following products would be a good example of complementary goods?

• DVD Player and BlueRay Player

• Chevy Silverado and Ford F-150

• Hamburgers and Buns

• Pencils and Pens

Which of the following would be considered substitute goods?

• Eggs and Toast

• Coke and Pepsi

• Milk and Cookies

• Roast Beef and Mashed Potatoes

What is the type of economic system where individuals own the factors of production and make economic decisions through free interaction while looking out for their own best interests without much government intervention?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

What is the type of economic system that combines characteristics of more than one type of economic system?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy