Unit 9: Basics of Economics Test Day

Question 1

A student is interested in two fall sports: cross country and golf. They decide to join the cross country team. Golf is:

Accepted Answer

the opportunity cost

Question 2

The higher the price customers will pay for good or services, the more producers will decide to offer for sale. This is:

Accepted Answer

The Law of Supply

Question 3

Which of these examples is NOT correctly matched with its resource type?

Accepted Answer

Goat = Capital

Question 4

Combining resources together with entrepreneurial ability to create a good or service is called:

Accepted Answer

Production

Question 5

In a ___ economy, people barter; people learn job skills from elders in their family; and local resources are used.

Accepted Answer

Traditional

Question 6

Which type of economy has government control of resources, no individual choice, and no competition?

Accepted Answer

Command

Question 7

Which of the following is an example of an incentive to buy that a consumer might encounter?

Accepted Answer

An offer of Buy One, Get One Free

Question 8

Which business structure offers one owner all of the profit, along with all of the risk?

Accepted Answer

Proprietorship

Question 9

Price can be located:

Accepted Answer

At the intersection of supply and demand curves

Question 10

A(n) __: can be any type of business organization; takes risks for profit; creates competition; & helps grow the economy

Accepted Answer

Entrepreneur

Question 11

People have unlimited needs & wants, but limited resources; they can't meet all needs & wants at the same time. This is:

Accepted Answer

Scarcity

Questions 11