Economics Terms Quiz Questions!

1. Uncle Tom has lost his job and is looking for work. He can't find a job. Uncle Tom is _______________________

Lost

Starving

Unemployed

A hard worker

Uncle Tom is unemployed because he has lost his job and is currently looking for work. Being unemployed means that a person does not have a job or is without work.

Explanation

Uncle Tom is unemployed because he has lost his job and is currently looking for work. Being unemployed means that a person does not have a job or is without work.

2. If a person was lost in the desert with no water thet water is in ______________.

In demand

In Surplus

Not needed

Plentiful

The correct answer is "In demand" because if a person is lost in the desert with no water, it means that they are in need of water. Therefore, water would be in demand for that person in order to survive.

Explanation

The correct answer is "In demand" because if a person is lost in the desert with no water, it means that they are in need of water. Therefore, water would be in demand for that person in order to survive.

3. _____________ is a something we need to survive.

Want

Need

Choice

Supply

Need refers to something that is essential for our survival. It is a basic requirement that we cannot live without.

Explanation

Need refers to something that is essential for our survival. It is a basic requirement that we cannot live without.

4. Which of the following are the three Factors of Production needed to produce goods and services?

Natural Resources, Consumption, Capital

Consumption, Human Resource (Labor), Economy

Natural Resources, Human Resource (Labor), Capital

Human Resource (Labor), Capital, Money

The three factors of production needed to produce goods and services are natural resources, human resources (labor), and capital. Natural resources refer to the materials and substances found in nature that are used in production, such as land, water, and minerals. Human resources, or labor, refer to the physical and mental effort contributed by individuals to the production process. Capital refers to the financial resources and physical assets, such as machinery and equipment, used in production.

Explanation

The three factors of production needed to produce goods and services are natural resources, human resources (labor), and capital. Natural resources refer to the materials and substances found in nature that are used in production, such as land, water, and minerals. Human resources, or labor, refer to the physical and mental effort contributed by individuals to the production process. Capital refers to the financial resources and physical assets, such as machinery and equipment, used in production.

5. America owes China billions of dollars. America imports more goods from China than it exports. Because of this America has a large_______________________

Trade Deficit

Tariff

Tax

Surplus

The given correct answer for this question is "Trade Deficit". This is because when a country imports more goods from another country than it exports, it creates a trade deficit. In this case, America owes China billions of dollars, indicating that it imports more goods from China than it exports, resulting in a trade deficit.

Explanation

The given correct answer for this question is "Trade Deficit". This is because when a country imports more goods from another country than it exports, it creates a trade deficit. In this case, America owes China billions of dollars, indicating that it imports more goods from China than it exports, resulting in a trade deficit.

6. The pratice of exchanging goods and services between people instead of money is know as:

Capitalism

Bartering

Communism

Exporting

Bartering refers to the practice of exchanging goods and services between people without the use of money. It is an ancient form of trade that predates the use of currency. In a barter system, individuals directly exchange goods and services with each other, based on their needs and wants. This system allows for the direct exchange of goods without the need for a medium of exchange like money.

Explanation

Bartering refers to the practice of exchanging goods and services between people without the use of money. It is an ancient form of trade that predates the use of currency. In a barter system, individuals directly exchange goods and services with each other, based on their needs and wants. This system allows for the direct exchange of goods without the need for a medium of exchange like money.

7. Who combines natural resources, labor, and capital to make a profit?

Middle Men

Owners

Entrepreneurs

Factories

Entrepreneurs combine natural resources, labor, and capital to make a profit. They are individuals who take risks and start new businesses or ventures. They identify opportunities in the market, assemble the necessary resources, and manage the operations to generate profits. Entrepreneurs play a crucial role in the economy by creating jobs, driving innovation, and contributing to economic growth. They are distinct from owners, who may not actively participate in the management of the business, and middlemen, who primarily facilitate transactions between buyers and sellers. Factories, on the other hand, are physical locations where goods are produced, but they do not necessarily involve the combination of resources for profit-making.

Explanation

Entrepreneurs combine natural resources, labor, and capital to make a profit. They are individuals who take risks and start new businesses or ventures. They identify opportunities in the market, assemble the necessary resources, and manage the operations to generate profits. Entrepreneurs play a crucial role in the economy by creating jobs, driving innovation, and contributing to economic growth. They are distinct from owners, who may not actively participate in the management of the business, and middlemen, who primarily facilitate transactions between buyers and sellers. Factories, on the other hand, are physical locations where goods are produced, but they do not necessarily involve the combination of resources for profit-making.

8. In order to raise money the United States has decided to tax all good from China. This tax is known as a

Tariff

Income Tax

Payroll Tax

FICA

The correct answer is Tariff. A tariff is a tax imposed on goods imported from another country. In this case, the United States has decided to tax all goods from China in order to raise money. This tax is known as a tariff.

Explanation

The correct answer is Tariff. A tariff is a tax imposed on goods imported from another country. In this case, the United States has decided to tax all goods from China in order to raise money. This tax is known as a tariff.

9. America signed the Delcaration of Independence on July 10th, 1776.

True

False

The given statement is false because America signed the Declaration of Independence on July 4th, 1776, not July 10th.

Explanation

The given statement is false because America signed the Declaration of Independence on July 4th, 1776, not July 10th.

10. Air, Food, Money and Shelter are all needs that we must have to survive.

True

False

Air is a basic need for survival as we need oxygen to breathe. Food is also essential for providing the necessary nutrients and energy for our bodies. Money, on the other hand, is not a basic need for survival but rather a means of acquiring goods and services. Shelter is important for protection and comfort, but it is not a fundamental requirement for survival. Therefore, the statement that Air, Food, Money, and Shelter are all needs for survival is false.

Explanation

Air is a basic need for survival as we need oxygen to breathe. Food is also essential for providing the necessary nutrients and energy for our bodies. Money, on the other hand, is not a basic need for survival but rather a means of acquiring goods and services. Shelter is important for protection and comfort, but it is not a fundamental requirement for survival. Therefore, the statement that Air, Food, Money, and Shelter are all needs for survival is false.