Question 1

What is the law of demand?

Accepted Answer

As the price of a good increases, the quantity demanded decreases

Answer

As the price of a good decreases, the quantity demanded increases

Answer

As the price of a good decreases, the quantity demanded decreases

Answer

As the price of a good increases, the quantity demanded increases

Question 2

What is the concept of scarcity in economics?

Accepted Answer

Limited resources compared to unlimited wants

Answer

Excess resources compared to limited wants

Answer

Unlimited resources compared to unlimited wants

Answer

Limited resources compared to limited wants

Question 3

What is the concept of opportunity cost?

Accepted Answer

The value of the next best alternative foregone

Answer

The cost of materials and labor required to produce a good or service

Answer

The price at which a good or service is sold in the market

Answer

The total cost of producing a good or service

Question 4

What is an opportunity cost?

Accepted Answer

The value of the next best alternative foregone

Answer

The cost of materials and labor required to produce a good or service

Answer

The price at which a good or service is sold in the market

Answer

The total cost of producing a good or service

Question 5

What is the law of supply?

Accepted Answer

As the price of a good increases, the quantity supplied increases

Answer

As the price of a good decreases, the quantity supplied increases

Answer

As the price of a good increases, the quantity supplied decreases

Answer

As the price of a good decreases, the quantity supplied decreases

Question 6

What is a tradeoff?

Accepted Answer

A situation things must be given up in order to gain something else.

Answer

A situation where both parties benefit equally.

Answer

A situation where there is no compromise.

Answer

A situation where one party gains and the other loses.

Question 7

What is a tradeoff in personal finance?

Accepted Answer

Choosing between spending money on immediate wants or saving for future goals.

Answer

Choosing between different banks for savings accounts.

Answer

Choosing between different credit card rewards programs.

Answer

Choosing between different investment options.

Question 8

What is an economic model?

Accepted Answer

A simplified representation of economic problem.

Answer

A system of trade between countries.

Answer

A type of financial investment.

Answer

A government policy to regulate prices.

Question 9

What is the law of supply and demand?

Accepted Answer

The theory that states the price of a product is determined by the relationship between the quantity supplied and the quantity demanded.

Answer

A law that governs criminal activities related to supply and demand.

Answer

A regulation that sets a minimum wage for workers.

Answer

A principle that determines the quality of goods and services.

Question 10

What does the 'D' in the PACED Decision Making Model stand for?

Accepted Answer

Decide

Answer

Define

Answer

Disengage

Answer

Design

Question 11

What does the 'A' in the PACED Decision Making Model stand for?

Accepted Answer

Alternatives

Answer

Analyze

Answer

Approve

Answer

Action

Question 12

What does the 'C' in the PACED Decision Making Model stand for?

Accepted Answer

Criteria

Answer

Create

Answer

Conclude

Answer

Control

Question 13

What does the 'E' in the PACED Decision Making Model stand for?

Accepted Answer

Evaluate

Answer

Execute

Answer

Estimate

Answer

Examine

Question 14

What does the 'P' in the PACED Decision Making Model stand for?

Accepted Answer

Problem

Answer

Prioritize

Answer

Perform

Answer

Plan

Question 15

What is barter?

Accepted Answer

A method of exchanging goods or services without using money

Answer

A type of currency

Answer

A system of taxation

Answer

A machine used for making drinks

Question 16

Which of the following is an example of barter?

Accepted Answer

Trading a bicycle for a guitar

Answer

Paying rent with credit card

Answer

Buying groceries with cash

Answer

Exchanging stocks for bonds

Question 17

What does the term 'marginal utility' refer to?

Accepted Answer

The additional satisfaction or benefit obtained from consuming an additional unit of a good or service.

Answer

The total satisfaction or benefit obtained from consuming a good or service.

Answer

The satisfaction or benefit obtained from consuming the last unit of a good or service.

Answer

The decrease in satisfaction or benefit obtained from consuming additional units of a good or service.

Question 18

What is the law of diminishing marginal utility?

Accepted Answer

As a person consumes more units of a good, the additional satisfaction or benefit they derive from each additional unit decreases.

Answer

As a person consumes more units of a good, the total satisfaction or benefit they derive decreases.

Answer

As a person consumes more units of a good, the satisfaction or benefit they derive remains constant.

Answer

As a person consumes more units of a good, the total satisfaction or benefit they derive increases.

Question 19

What is an incentive?

Accepted Answer

A motivating influence that stimulates action or effort

Answer

A negative consequence for not achieving a goal

Answer

A reward for completed tasks

Answer

A punishment for unacceptable behavior

Question 20

What is a positive incentive?

Accepted Answer

A reward or benefit given to encourage a specific behavior

Answer

An unexpected consequence of a behavior

Answer

A neutral outcome that does not affect behavior

Answer

A punishment imposed to discourage a specific behavior

Question 21

Which of the following is an example of a positive incentive?

Accepted Answer

Receiving a bonus for meeting a sales target

Answer

Getting a parking ticket for parking in a restricted area

Answer

Being ignored by others for talking too loudly

Answer

Losing a point for incorrect answer in a quiz

Question 22

Which of the following is an example of a positive incentive in education?

Accepted Answer

Awarding a scholarship for academic excellence

Answer

Suspending a student for disciplinary issues

Answer

Giving detention for arriving late to class

Answer

Decreasing a student's grade for missing homework

Question 23

What is a negative incentive?

Accepted Answer

A penalty or punishment that is imposed to discourage a certain behavior.

Answer

An encouragement to achieve a goal.

Answer

An indirect consequence of an action.

Answer

A reward given for good behavior.

Question 24

Which of the following is an example of a negative incentive?

Accepted Answer

A fine for speeding.

Answer

A discount for loyal customers.

Answer

A promotion for outstanding performance.

Answer

A bonus for meeting sales targets.

Question 25

What is a negative incentive used in fitness programs?

Accepted Answer

A penalty fee for missed workouts.

Answer

A cash reward for achieving weight loss goals.

Answer

Access to exclusive training sessions for high performance.

Answer

Complimentary fitness gear for consistent attendance.

Question 26

Which of the following is a factor of production?

Accepted Answer

Labor

Answer

Sales

Answer

Research

Answer

Advertising

Question 27

Which of the following is a capital resource?

Accepted Answer

Machinery

Answer

Time

Answer

Skills

Answer

Education

Question 28

Which of the following is considered a natural resource?

Accepted Answer

Oil

Answer

Customer service

Answer

Human capital

Answer

Marketing

Question 29

Which of the following is an example of an entrepreneurial resource?

Accepted Answer

Innovation

Answer

Labor

Answer

Financial capital

Answer

Raw materials

Question 30

Which of the following is an example of a human resource?

Accepted Answer

Teacher

Answer

Oil

Answer

Machinery

Answer

Financial capital

Question 31

What happens when there is a surplus in a market?

Accepted Answer

Producers supply more than consumers demand.

Answer

Producers supply as much as consumers demand.

Answer

Producers supply the same as consumers demand.

Answer

Producers supply less than consumers demand.

Question 32

What happens when there is a shortage in a market?

Accepted Answer

Consumers demand more than producers supply.

Answer

Consumers demand the same as producers supply.

Answer

Consumers demand less than producers supply.

Answer

Consumers demand as much as producers supply.

Question 33

What is the equilibrium price?

Accepted Answer

The price at which the quantity demanded equals the quantity supplied.

Answer

The price at which there is no demand or supply.

Answer

The price at which the quantity supplied exceeds the quantity demanded.

Answer

The price at which the quantity demanded exceeds the quantity supplied.

Question 34

What is voluntary exchange?

Accepted Answer

The act of individuals freely trading goods or services with one another

Answer

A policy that imposes restrictions on trade

Answer

The act of individuals being forced to trade goods or services

Answer

The act of individuals trading goods or services under government supervision

Question 35

What is a key characteristic of voluntary exchange?

Accepted Answer

It is based on mutual consent

Answer

It is regulated by the government

Answer

It leads to economic inequality

Answer

It is forced upon individuals

Question 36

What is the primary function of a market?

Accepted Answer

To facilitate the exchange of goods and services

Answer

To regulate prices in an industry

Answer

To determine consumer preferences

Answer

To create barriers of entry for new competitors

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