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