- 1. What would you find in arrow A?
A) Economy B) Resources C) Goods and Services D) Money
- 2. What would you find in arrow B?
A) Resources B) Economy C) Money D) Goods and Services
- 3. What would you find in arrow C?
A) Resources B) Economy C) Goods and Services D) Money
- 4. What would you find in arrow D?
A) Goods and Services B) Resources C) Money D) Economy
- 5. Which is NOT a type of resource?
A) human B) taxes C) capital D) natural
- 6. Which BEST describes the circular flow of an economy?
A) happens only in a goods and services market B) the exchange of money, goods, and services in an economy C) happens only resource market D) the flow between businesses and resources
- 7. Which is NOT true of public goods and services?
A) only given to the needy B) no one is prevented from using them C) shared by everyone-sometimes at the same time D) are paid for by taxes
- 8. Which is NOT a basic economic question faced by an economy?
A) What to produce? B) How to produce? C) How much profit will be made? D) For whom to produce?
- 9. Who pays for public goods and services?
A) philanthropists B) government C) only people who use them D) taxpayers
- 10. A free enterprise economy is a system in which economic decisions are made in markets by consumers and businesses.
A) False B) True
- 11. Due to scarcity, people cannot have all of the things they want.
A) True B) False
- 12. Businesses produce goods and services for citizens, who in turn supply labor and other resources to the businesses.
A) False B) True
- 13. Resources are the goods people buy from business.
A) False B) True
- 14. The merchandise, skills, and knowledge offered for sale by businesses or citizens are called
A) resources B) products C) private goods and services D) trade
- 15. Payments that citizens are required to make to government are called
A) goods and services B) products C) taxes D) resources
- 16. In a free enterprise economy, _____________ make the decisions about what they will sell.
A) government B) economy C) businesses
- 17. The exchange of goods and services is called
A) trade B) taxes C) money D) net pay
- 18. The total amount of an employee's earnings before deductions have been taken out is
A) gross pay B) profit C) net pay D) taxes
- 19. The amount of income left after taxes and deductions have been taken out is
A) gross pay B) net pay C) taxes D) profit
- 20. Efforts to improve the well-being of humankind, generally through giving money and time is philanthropy.
A) False B) True
- 21. The personal habits and attitudes that promote the well-being of a group is
A) resources B) opportunity cost C) ethics D) civic virtue
- 22. A place where people live, work, trade, and share is a
A) community B) business C) economy D) circular flow
- 23. An example of a private good would be
A) police B) road C) street lamp D) car
- 24. An example of a public good would be
A) land B) car C) boat D) road
- 25. The money that is left over after a business pays all its costs is
A) taxes B) profit C) debt D) opportunity cost
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