31 Jan 20. Prices are important

Question 1

1. Which economic system features the government as the main economic decision-maker?

A. Command

B. Traditional

C. Generational

D. Market

Question 2

2. The _______ price is the point at which supply and demand for a good are equal.

A. perfect

B. market

C. elastic

D. middle

Question 3

3. In a market economy, who decides what will be produced?

A. Government

B. Consumers

C. Traditions

D. Managers

Question 4

4. Banks get most of the money to loan out to people from

A. taxes charged by banks.

B. other banks.

C. people that deposit money in the bank for safekeeping.

D. the government.

Question 5

5. What’s a possible opportunity cost when you spend $100 on a pair of sneakers?

A. Not being able to buy sneakers again

B. $100

C. $110 after inflation

D. Not being able to spend that $100 on some furniture for your house

Question 6

6. What might cause a consumer to have an elastic demand for a product?

A. The product was produced outside of the United States.

B. The product is priced at $5.

C. The product isn’t a necessity.

D. The product is a necessity.

Question 7

7. In the circular flow of the US economy, what does government provide to households?

A. Taxes and resources

B. Resources and payments

C. Taxes and resources

D. Services and income

Question 8

8. Which of the following people is likely to benefit from inflation?

A. A person who has a large savings account

B. A retired person on a fixed income

C. A person with low income

D. A person who owes $200,000 on a loan

Question 9

9. A tractor to help with farm work would be an example of what kind of economic resource?

A. A natural resource

B. A human resource

C. A capital resource

D. A farm resource

Question 10

10. A useful characteristic of money is that money

A. is only printed by the US government.

B. is something that everyone wants.

C. allows us to compare the values of goods and services.

D. is difficult to count accurately.

Question 11

11. An advantage of using a check rather than cash to make a purchase is that checks are

A. light and can be carried easily.

B. safer because only you can use your checks.

C. easy to count.

D. widely accepted by merchants.

Question 12

12. The United States is a mixed economy because

A. only private individuals make economic decisions.

B. a mix of products and services is produced.

C. only the government makes economic decisions.

D. both private individuals and government officials make economic decisions

Question 13

13. Generally speaking, the means of production in a market economy are

A. not needed.

B. owned by government.

C. passed down according to tradition.

D. owned by individuals.

Question 14

14. Why are retired people hurt by inflation?

A. They’re afraid of change.

B. Since they’re on fixed incomes, their income doesn’t rise to meet higher prices.

C. They live beyond their means.

D. Retired people often buy products that are especially likely to experience inflation.

Question 15

15. Which of the following would be an example of a service?

A. A pair of shoes

B. A wooden shelf

C. A waiter serving food

D. A television

Question 16

16. What term describes the rise in prices of most goods and services?

A. Recession

B. Inelasticity

C. Deflation

D. Inflation

Question 17

17. Which of the following products is likely to have an inelastic supply reaction to a change in price?

A. Shoes

B. Cars

C. Corn

D. Televisions

Question 18

18. All countries have what type of economy?

A. Command

B. Market

C. Traditional

D. Mixed

Question 19

19. Which economic system has economic roles that are passed from generation to generation?

A. Generational

B. Traditional

C. Command

D. Market

Question 20

20. Prices are important to the US economy because they

A. let you know how much an item costs.

B. act as signals to buyers and sellers.

C. are set by the US government.

D. determine the quality of a product.