Multiple Choice Identify the
choice that best completes the statement or answers the question.
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1.
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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. |
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2.
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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 |
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3.
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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 |
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4.
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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 |
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5.
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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 |
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6.
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Minerals, plants, and animals are examples of which factor
of production?
A | natural resources | B | capital
goods | C | human resources | D | entrepreneurship |
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7.
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Textile mills, factories, and printing shops are examples of
which factor of production?
A | natural resources | B | capital goods | C | human
resources | D | entrepreneurship |
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8.
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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 |
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9.
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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 |
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10.
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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 |
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11.
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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 |
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12.
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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 |
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13.
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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 |
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14.
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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. |
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15.
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Traditions, beliefs and habits influence which form of
economy?
A | market economy | B | traditional economy | C | mixed
economy | D | command economy |
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16.
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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 |
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17.
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Supply and demand determine economic decisions in which form
of economy?
A | market economy | B | traditional economy | C | mixed
economy | D | command economy |
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18.
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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 |
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19.
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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 |
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20.
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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 |
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