- 1. What would you find in arrow A?
A) Resources
B) Money
C) Goods and Services
D) Economy
- 2. What would you find in arrow B?
A) Resources
B) Money
C) Goods and Services
D) Economy
- 3. What would you find in arrow C?
A) Money
B) Resources
C) Economy
D) Goods and Services
- 4. What would you find in arrow D?
A) Resources
B) Money
C) Goods and Services
D) Economy
- 5. Which is NOT a type of resource?
A) taxes
B) capital
C) natural
D) human
- 6. Which BEST describes the circular flow of an economy?
A) happens only resource market
B) happens only in a goods and services market
C) the exchange of money, goods, and services in an economy
D) the flow between businesses and resources
- 7. Which is NOT true of public goods and services?
A) only given to the needy
B) are paid for by taxes
C) shared by everyone-sometimes at the same time
D) no one is prevented from using them
- 8. Which is NOT a basic economic question faced by an economy?
A) How much profit will be made?
B) How to produce?
C) What to produce?
D) For whom 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) 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) True
B) False
- 14. The merchandise, skills, and knowledge offered for sale by businesses or citizens are called
A) private goods and services
B) resources
C) products
D) trade
- 15. Payments that citizens are required to make to government are called
A) goods and services
B) taxes
C) resources
D) products
- 16. In a free enterprise economy, _____________ make the decisions about what they will sell.
A) economy
B) government
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) net pay
B) profit
C) gross pay
D) taxes
- 19. The amount of income left after taxes and deductions have been taken out is
A) gross pay
B) taxes
C) profit
D) net pay
- 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) ethics
B) civic virtue
C) opportunity cost
D) resources
- 22. A place where people live, work, trade, and share is a
A) economy
B) business
C) community
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) boat
B) car
C) land
D) road
- 25. The money that is left over after a business pays all its costs is
A) taxes
B) opportunity cost
C) profit
D) debt
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