Question 1

What is the study of how people and societies use scarce resources to produce goods and services?

Accepted Answer

Economics

Answer

Biology

Answer

History

Answer

Art

Question 2

What is the term for the items that people use to make or obtain what they need or want?

Accepted Answer

Resources

Answer

Money

Answer

Goods

Answer

Services

Question 3

What is the term for the unlimited desires or wants of people for goods and services?

Accepted Answer

Demand

Answer

Profit

Answer

Scarcity

Answer

Supply

Question 4

What is the term for the total value of all goods and services produced by a country in a year?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Budget Deficit

Answer

Stock Market Index

Answer

Consumer Price Index (CPI)

Question 5

What do we call the system in which goods and services are produced, distributed, and consumed in a society?

Accepted Answer

Economy

Answer

Environment

Answer

Education

Answer

Entertainment

Question 6

What does a demand curve show?

Accepted Answer

How much of a good or service people are willing and able to buy at different prices

Answer

How much money people have

Answer

How many pets people have

Answer

How tall people are

Question 7

What happens to demand if the price of a product goes down?

Accepted Answer

Demand usually goes up

Answer

Demand disappears

Answer

Demand stays the same

Answer

Demand usually goes down

Question 8

Why do demand curves slope downwards?

Accepted Answer

Because as the price decreases, more people are willing and able to buy the product

Answer

Because the price increases as demand goes down

Answer

Because the sky is blue

Answer

Because demand curves like to slope that way

Question 9

What is one factor that can cause a shift in the demand curve?

Accepted Answer

A change in consumer preferences

Answer

A change in the number of trees

Answer

A change in the weather

Answer

A change in the color of shoes

Question 10

If the price of ice cream cones goes up, what is likely to happen to the demand for ice cream cones?

Accepted Answer

Demand for ice cream cones will likely decrease

Answer

Demand for ice cream cones will likely increase

Answer

Demand for ice cream cones will likely double

Answer

Demand for ice cream cones will likely stay the same

Question 11

What does the demand curve show in relation to the price of a product?

Accepted Answer

The quantity of a product consumers are willing to buy at different prices

Answer

The temperature of the product

Answer

The color of the product

Answer

The names of consumers who buy the product

Question 12

What happens to demand if a popular singer endorses a new brand of sneakers?

Accepted Answer

Demand for the sneakers will likely increase

Answer

Demand for the sneakers will likely decrease

Answer

Demand for all shoes will increase

Answer

Demand for the sneakers will disappear

Question 13

What is demand?

Accepted Answer

The amount of a good or service that people are willing and able to buy at a certain price

Answer

The amount of sunshine in a day

Answer

The color of a rainbow

Answer

The number of stars in the sky

Question 14

What does the demand curve show in relation to price?

Accepted Answer

How much of a good or service people are willing to buy at different prices

Answer

How many pets people have

Answer

How much money people have

Answer

How tall people are

Question 15

What causes a shift in the demand curve?

Accepted Answer

Changes in income, preferences, or expectations.

Answer

Changes in the weather.

Answer

Changes in supply.

Answer

Changes in the price of the product.

Question 16

What can cause a shift in the demand curve?

Accepted Answer

Changes in consumer preferences.

Answer

Changes in government policies.

Answer

Changes in the weather.

Answer

Changes in the price of the product.

Question 17

What does a shift to the right in the demand curve indicate?

Accepted Answer

An increase in demand for the product.

Answer

An increase in the price of the product.

Answer

No change in demand for the product.

Answer

A decrease in demand for the product.

Question 18

How does a shift to the left in the demand curve affect the market?

Accepted Answer

It can lead to a decrease in the price and quantity of a product in the market.

Answer

It causes all sellers to stop selling the product.

Answer

It has no impact on the market.

Answer

It only affects one buyer in the market.

Question 19

What effect does an increase in consumer income have on the demand curve?

Accepted Answer

It can shift the demand curve to the right.

Answer

It can shift the demand curve to the left.

Answer

It makes the demand curve disappear.

Answer

It does not affect the demand curve.

Question 20

What does scarcity mean?

Accepted Answer

Not having enough of something

Answer

Only wanting a little bit of something

Answer

Having lots of everything

Answer

Giving away everything for free

Question 21

What is aggregate demand?

Accepted Answer

The total amount of goods and services that households, businesses, and the government are willing to buy at different price levels.

Answer

The total amount of money in circulation

Answer

The total amount of taxes collected by the government

Answer

The total amount of goods and services produced in an economy

Question 22

What types of goods are considered Veblen goods?

Accepted Answer

Luxury goods

Answer

Second-hand goods

Answer

Basic goods

Answer

Everyday goods

Question 23

According to Veblen, what is the characteristic of a Veblen good with respect to its price?

Accepted Answer

The demand for Veblen goods increases as their price increases

Answer

The demand for Veblen goods remains constant regardless of price changes

Answer

The demand for Veblen goods is independent of their price

Answer

The demand for Veblen goods decreases as their price decreases

Question 24

Which of the following is an example of an inferior good?

Accepted Answer

Public transportation

Answer

Limousines

Answer

Private jets

Answer

Sport cars

Question 25

What is an economy where the government controls the production and distribution of goods called?

Accepted Answer

Command economy

Answer

Market economy

Answer

Mixed economy

Answer

Traditional economy

Question 26

What is an economy where individuals and businesses determine what to produce and how to distribute it?

Accepted Answer

Market economy

Answer

Command economy

Answer

Traditional economy

Answer

Mixed economy

Question 27

What type of economy is a combination of a market economy and a command economy?

Accepted Answer

Mixed economy

Answer

Cash economy

Answer

Traditional economy

Answer

Barter economy

Question 28

Which of the following best describes positive analysis in economics?

Accepted Answer

An examination of facts and cause-and-effect relationships

Answer

A journey to outer space

Answer

An exploration of fictional stories

Answer

A study of magical creatures

Question 29

In economics, what does normative analysis focus on?

Accepted Answer

Opinions and value judgments

Answer

Mathematical equations and formulas

Answer

Scientific experiments and discoveries

Answer

Historical events and facts

Question 30

How is normative analysis different from positive analysis?

Accepted Answer

Normative analysis involves opinions and value judgments, while positive analysis deals with facts and cause-and-effect relationships.

Answer

Normative analysis looks at historical events, while positive analysis looks at scientific experiments.

Answer

Normative analysis involves baking cookies, while positive analysis involves flying to the moon.

Answer

Normative analysis focuses on magic tricks, while positive analysis focuses on fictional stories.

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