Multiple Choice
Identify the
choice that best completes the statement or answers the question.
|
|
|
1.
|
All people have both needs and wants. Which statement
BEST describes the difference between needs and wants?
A | Needs are things that are necessary to survive. Wants are things
that are nice to have. | B | Needs are things that you
desire. Wants are things that you must have. | C | Needs are things you really
want to have. Wants are things that you need to have. | D | Needs are usually affordable. Wants are usually
expensive. |
|
|
|
2.
|
From the list below, select the item(s) that most people
would consider BASIC needs.
A | food, shelter, clothing | B | transportation | C | smartphone | D |
haircut |
|
|
|
3.
|
Needs and wants include both goods and services. From the
list below, select the item which is a service.
A | food, shelter, clothing | B | transportation | C | smartphone | D | haircut |
|
|
|
4.
|
In the exchange of goods and services, there is a consumer
and producer. Which statement illustrates an action of a producer?
A | buying a meal in a restaurant | B | cooking a meal in a restaurant | C | paying for a
meal | D | buying groceries |
|
|
|
5.
|
Factors of production are the things needed to produce goods
and services. From the list below, select the item which is NOT a factor of production.
A | natural and human resources | B | capital goods | C | entrepreneurship | D | consumer |
|
|
|
6.
|
Minerals, plants, and animals are examples of which factor
of production?
A | natural resources | B | capital
goods | C | human resources | D | entrepreneurship |
|
|
|
7.
|
Textile mills, factories, and printing shops are examples of
which factor of production?
A | natural resources | B | capital goods | C | human
resources | D | entrepreneurship |
|
|
|
8.
|
The value of a person's skills and education is an
example of which factor of production?
A | natural resources | B | capital goods | C | human
resources | D | entrepreneurship |
|
|
|
9.
|
A person who starts his/her own business is an example of
which factor of production?
A | natural resources | B | capital goods | C | human
resources | D | entrepreneurship |
|
|
|
10.
|
When the newest game system or smartphone is released, it is
not always available to everyone who wants it. This is an illustration of which economic
concept?
A | resource allocation | B | scarcity | C | specialization | D | cost/benefit
analysis |
|
|
|
11.
|
When a person makes a decision, the value of the next best
alternative is referred to by which economic term?
A | trade-off | B | opportunity cost | C | demand | D | supply |
|
|
|
12.
|
The amount of a good that is for sale is referred to by
which term?
A | trade-off | B | opportunity cost | C | demand | D | supply |
|
|
|
13.
|
The amount of a good that people are willing to buy is
referred to by which term?
A | trade-off | B | opportunity cost | C | demand | D | supply |
|
|
|
14.
|
What might result when a producer makes a small amount of a
good?
A | The price decreases. | B | The price increases. | C | The amount sold
increases. | D | The demand decreases. |
|
|
|
15.
|
Traditions, beliefs and habits influence which form of
economy?
A | market economy | B | traditional economy | C | mixed
economy | D | command economy |
|
|
|
16.
|
Government planning groups make the basic economic decisions
in which form of economy?
A | market economy | B | traditional economy | C | mixed
economy | D | command economy |
|
|
|
17.
|
Supply and demand determine economic decisions in which form
of economy?
A | market economy | B | traditional economy | C | mixed
economy | D | command economy |
|
|
|
18.
|
What term below describes the total value of all goods and
services produced in one country in one year?
A | inflation | B | gross domestic product | C | consumer price
index | D | tariff |
|
|
|
19.
|
Which term below describes a tax on imported goods that
causes an increase in the price of a good to consumers?
A | inflation | B | gross domestic product | C | consumer price
index | D | tariff |
|
|
|
20.
|
Which term below describes continual increases in the price
of goods and services?
A | inflation | B | gross domestic product | C | consumer price
index | D | tariff |
|