Section 1 Econ Quiz

Macroeconomics is...

How people make decisions

The study of how a person spends their money

The study of the economy as a whole

Which of the following is not an example of a good?

An apple

A computer

Iced Tea

A haircut

Scarcity happens because...

People spend too much money

People’s income and time are limited

People need more goods and less services

Shortage is determine by..

Price

Taxes

The government

All choices have both.. (choose 2)

Benefits

Costs

Decisions

Choices

Giving up something to obtain another thing is known as a:

Trade-off

Swap

Sacrifice

Value of the next best alternative given up for the alternative that was chosen.

Economic freedom

Opportunity cost

Banking

Is it possible for everyone to get their needs?

Yes.

No.

Factor

Refers to markets where services of the factors of production are bought and sold such as the labor markets, the capital market, the market for raw materials.

Where goods and services produced by businesses are sold to households

Product

Refers to markets where services of the factors of production are bought and sold such as the labor markets, the capital market, the market for raw materials.

Where goods and services produced by businesses are sold to households

Allocative Efficiency

Occurs when the economy is utilizing all of its resources efficiently

Is a type of economic efficiency in which producers produce only those types of goods and services that are more desirable in the society while in high demand

Productive Efficiency

Is a type of economic efficiency in which producers produce only those types of goods and services that are more desirable in the society while in high demand

Occurs when the economy is utilizing all of its resources efficiently

The maximum output of a combination of goods and services that can be produced from a _____________ of resources in a given period of time.

Large amount

Fixed amount

Small amount

Negative amount

is the study of the individual consumers and businesses

Economics

Microeconomics

Macroeconomics

PPC

Something a person would like to have, but it is not necessary for survival

Want

Need

Specialty

Something a person cannot live without

Request

Need

Basic component of life

Luxury

Economics is...

The study of life and money

The study of how people interact with each other and how that effects the environment

The study of how people make decisions, based on needs and wants, due to limited resources

Section 1 Econ Quiz

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