- 1. What would you find in arrow A?
A) Resources B) Economy C) Goods and Services D) Money
- 2. What would you find in arrow B?
A) Goods and Services B) Money C) Resources D) Economy
- 3. What would you find in arrow C?
A) Economy B) Money C) Goods and Services D) Resources
- 4. What would you find in arrow D?
A) Economy B) Goods and Services C) Money D) Resources
- 5. Which is NOT a type of resource?
A) capital B) natural C) taxes D) human
- 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) no one is prevented from using them B) shared by everyone-sometimes at the same time C) are paid for by taxes D) only given to the needy
- 8. Which is NOT a basic economic question faced by an economy?
A) What to produce? B) How much profit will be made? C) For whom to produce? D) How to produce?
- 9. Who pays for public goods and services?
A) only people who use them B) government C) philanthropists 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) True B) False
- 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) 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) products C) goods and services D) taxes
- 16. In a free enterprise economy, _____________ make the decisions about what they will sell.
A) businesses B) economy C) government
- 17. The exchange of goods and services is called
A) net pay B) taxes C) money D) trade
- 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) profit C) taxes D) gross pay
- 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) civic virtue B) resources C) opportunity cost D) ethics
- 22. A place where people live, work, trade, and share is a
A) community B) business C) circular flow D) economy
- 23. An example of a private good would be
A) road B) street lamp C) car D) police
- 24. An example of a public good would be
A) land B) boat C) road D) car
- 25. The money that is left over after a business pays all its costs is
A) taxes B) profit C) opportunity cost D) debt
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