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Economics Practice Test

27 Questions
Economics Quizzes & Trivia

This practice test is for review only. You can attempt it as often as you like. Your scores will not be recorded.

Questions and Answers
  • 1. 
    What is the financial gain made in transactions? 
    • A. 

      Profit

    • B. 

      Resource

    • C. 

      Scarcity

    • D. 

      Wage

  • 2. 
    If a person makes a necklace that only costs $2.00 to make, and then sells the necklace for $12.00, they made a $10.00 ____?_____. 
    • A. 

      Wage

    • B. 

      Demand

    • C. 

      Profit

    • D. 

      Equilibrium price

  • 3. 
    What is an eeconomic or productive factor required to accomplish an activity? 
    • A. 

      Specialization

    • B. 

      Resource

    • C. 

      Traditional system

    • D. 

      Wage

  • 4. 
     What is it called when you have limited quantities of resources used to meet unlimited wants?
    • A. 

      Profit

    • B. 

      Specialization

    • C. 

      Cartel

    • D. 

      Scarcity

  • 5. 
    What is the concentration of the productive efforts of individuals and firms on a limited number of activities? 
    • A. 

      Socialism

    • B. 

      Specialization

    • C. 

      Factors of production

    • D. 

      Free enterprise

  • 6. 
    What is a social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society? 
    • A. 

      Captialism

    • B. 

      Socialism

    • C. 

      Traditional system

    • D. 

      Microeconomics

  • 7. 
    • A. 

      Capitalism

    • B. 

      Socialism

    • C. 

      Traditional system

    • D. 

      Barter system

  • 8. 
    What is a payment made my an employer to an employee? 
    • A. 

      Profit

    • B. 

      Marginal

    • C. 

      Interest

    • D. 

      Wage

  • 9. 
    What is a formal organization of producers that agree to coordinate prices and production? 
    • A. 

      Cartel

    • B. 

      Traditional system

    • C. 

      Command system

    • D. 

      Corporation

  • 10. 
    What are two goods that are bought and used together? 
    • A. 

      Monopolistic competition

    • B. 

      Market system

    • C. 

      Complementary goods

    • D. 

      Efficiency

  • 11. 
    • A. 

      Capital

    • B. 

      Free enterprise

    • C. 

      Specialization

    • D. 

      Corporation

  • 12. 
    What is the desire to own something and the ability to pay for it called? 
    • A. 

      Demand

    • B. 

      Allocation

    • C. 

      Capital

    • D. 

      Opportunity cost

  • 13. 
    What is the measure of how consumers react to a change in price? 
    • A. 

      Elasticity

    • B. 

      Marginal

    • C. 

      Equilibrium price

    • D. 

      Scarcity

  • 14. 
    What is the point at which the quantity demanded and the quantity supplied are equal called? 
    • A. 

      Elasticity

    • B. 

      Efficiency

    • C. 

      Equilibrium price

    • D. 

      Production possibilites

  • 15. 
     What is the study of economic behavior and decision making of small units, such as individuals, families, and businiesses called?
    • A. 

      Macroeconomics

    • B. 

      Microeconomics

    • C. 

      Economics

    • D. 

      Economic statistics

  • 16. 
    What is a market structure in which many companies sell products that are similar but not identical? 
    • A. 

      Monopoly

    • B. 

      Traditional system

    • C. 

      Oligopoly

    • D. 

      Monopolistic competition

  • 17. 
    The KIA plant was built by which country?
    • A. 

      North Korea

    • B. 

      South Korea

    • C. 

      China

  • 18. 
    The machines and robots at the KIA plant are an example of what?
    • A. 

      Capital

    • B. 

      Economic technology

    • C. 

      Specialization

  • 19. 
    The KIA plant was built in what Georgia city?
    • A. 

      Middleton

    • B. 

      Atlanta

    • C. 

      West Point

  • 20. 
    Which country represents a substantial degree of socialism?
    • A. 

      Denmark

    • B. 

      Canada

    • C. 

      United Kingdom

  • 21. 
    Corporations are in business for what?
    • A. 

      Profit

    • B. 

      Non-profit

    • C. 

      Stockholders

  • 22. 
    At full capacity, the KIA plant should produce how many vehicles per year?
    • A. 

      250,000,000

    • B. 

      1 billion

    • C. 

      300,000

  • 23. 
    • A. 

      Capitalism

    • B. 

      Monopolistic competition

    • C. 

      Incentive

  • 24. 
    How much did it cost KIA to build their plant in Georgia?
    • A. 

      $1 billion

    • B. 

      $2 billion

    • C. 

      $3 billion

  • 25. 
    What is financial compensation in exchange for labor?
    • A. 

      Profit

    • B. 

      Wage

    • C. 

      Capital

  • 26. 
    What is the hourly wage at KIA?
    • A. 

      $14-21/hr

    • B. 

      $15-25/hr

    • C. 

      $12-22/hr

  • 27. 
    • A. 

      Macroeconomics

    • B. 

      Microeconomics

    • C. 

      Home Economics