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