Economics Quiz: Test Your Basics!

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| By Shannon Lazek
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Shannon Lazek
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Economics Quiz: Test Your Basics! - Quiz


Are you ready to test the basics with this quiz on economics? Do you think you would be able to pass? With this quiz, you must learn the tangible and intangible factors of production, which kind of economy has no government involvement regarding economic decisions and production elements. This extraordinary quiz will help you test your basic knowledge of economics. Invest in this quiz, and you will earn a certificate.


Questions and Answers
  • 1. 

    Which factors of production are TANGIBLE?

    • A.

      Land

    • B.

      Labor

    • C.

      Capital

    • D.

      Entrepreneurship

    Correct Answer(s)
    A. Land
    C. Capital
    Explanation
    The factors of production that are tangible are land and capital. Land refers to natural resources such as forests, minerals, and water bodies that are used in the production process. Capital refers to physical assets like buildings, machinery, and equipment that are used to produce goods and services. Labor and entrepreneurship, on the other hand, are not tangible factors of production. Labor refers to the human effort and skills involved in production, while entrepreneurship refers to the ability to organize and manage the other factors of production.

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  • 2. 

    Which factors of production are INTANGIBLE?

    • A.

      Land

    • B.

      Labor

    • C.

      Capital

    • D.

      Entrepreneurship

    Correct Answer(s)
    B. Labor
    D. Entrepreneurship
    Explanation
    Labor and entrepreneurship are considered intangible factors of production because they cannot be physically touched or measured. Labor refers to the human effort and skills that are required to produce goods and services, which cannot be seen or touched. Entrepreneurship, on the other hand, refers to the ability to innovate, take risks, and organize the other factors of production. It is a skill or quality possessed by individuals and cannot be physically measured or observed.

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  • 3. 

    Which form of economy has NO GOVERNMENT involvement in economic decisions?

    Correct Answer(s)
    Market
    market
    Market Economy
    market economy
    Explanation
    A market economy is a form of economy where economic decisions are made by individuals and businesses based on supply and demand, without any government involvement. In this type of economy, prices are determined by the interactions of buyers and sellers in the market, and resources are allocated based on consumer preferences and business profitability. The government does not interfere in setting prices, regulating businesses, or controlling production and distribution. Instead, the market forces of supply and demand determine the allocation of resources and the distribution of goods and services.

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  • 4. 

    Examples of LAND are natural resources.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The given statement is true because land refers to the surface of the earth, including all natural resources such as minerals, water bodies, forests, and agricultural land. These resources are considered part of the land and are essential for various human activities and economic development. Therefore, the statement correctly states that examples of land include natural resources.

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  • 5. 

    The factors of production are Land, Labor, Capitol, and Entrepreneurship.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The given statement is false. The correct factors of production are Land, Labor, Capital, and Entrepreneurship, not "Capitol." This is a common mistake, as the words "capital" and "capitol" are homophones and can easily be confused. However, in the context of economics, "capital" refers to the physical and financial assets used in production, while "capitol" refers to a building where a legislative body meets. Therefore, the correct answer is false.

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  • 6. 

    The ECONOMY is

    • A.

      An organized way a nation provides for the needs and wants of its people.

    • B.

      All the things used in producing goods and services.

    • C.

      All the people that work.

    • D.

      Natural resources (gas, plants, soil, tree, oil)

    Correct Answer
    A. An organized way a nation provides for the needs and wants of its people.
    Explanation
    The correct answer is "an organized way a nation provides for the needs and wants of its people." This answer accurately describes the concept of the economy as a system that ensures the fulfillment of the needs and desires of the population. It implies the presence of structures, institutions, and processes that facilitate the production, distribution, and consumption of goods and services within a nation. This definition highlights the role of economic systems in addressing the requirements and aspirations of individuals and society as a whole.

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  • 7. 

    The U.S. is a mixed economy with an emphasis of the _____________ economy.

    • A.

      Command

    • B.

      Traditional

    • C.

      Market

    • D.

      Socialism

    Correct Answer
    C. Market
    Explanation
    The U.S. is a mixed economy with an emphasis on the market economy. In a market economy, the allocation of resources and the production of goods and services are primarily determined by supply and demand. This means that businesses and consumers have the freedom to make economic decisions based on their own self-interest. While the U.S. does have some government intervention and regulation, it predominantly operates on market principles, allowing for private ownership, competition, and profit motive to drive the economy.

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  • 8. 

    A political and economic philosophy characterized by marketplace competition and private ownership of businesses.

    • A.

      Socialism

    • B.

      Capitalism

    • C.

      Communism

    • D.

      Neoism

    Correct Answer
    B. Capitalism
    Explanation
    Capitalism is a political and economic philosophy that advocates for marketplace competition and private ownership of businesses. In a capitalist system, individuals and corporations have the freedom to own and control the means of production, and the market determines the prices and distribution of goods and services. This economic system encourages entrepreneurship, innovation, and individual initiative, as well as the accumulation of wealth. Capitalism is based on the principles of supply and demand, profit motive, and limited government intervention in the economy.

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  • 9. 

    Japan is a socialist country.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Japan is not a socialist country. It is a constitutional monarchy with a mixed economy, combining elements of capitalism and socialism. While Japan does have a strong welfare system and government intervention in certain industries, it also has a thriving private sector and market economy. Therefore, the statement that Japan is a socialist country is false.

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  • 10. 

    Entrepreneurs are allowed in a Communist country.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    In a Communist country, private ownership and entrepreneurship are typically restricted or heavily regulated by the government. The main goal of a Communist system is to achieve economic equality and eliminate class distinctions, which often involves the state controlling and directing the means of production. Therefore, entrepreneurs are generally not allowed in a Communist country, as the government seeks to centralize economic decision-making and minimize individual profit motives.

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