Civics Today Citizenship, Economics, & You

Chapter 18: What Is Economics?

Self-Check Quizzes

1
The fundamental economic problem is _____.
A)how to make money
B)scarcity
C)decision making
D)what type of economy to have
2
Choosing between building a new school or improving a wastewater treatment plant is an example of _____.
A)deciding WHAT to produce
B)deciding HOW to produce
C)deciding FOR WHOM to produce
D)deciding HOW MUCH to produce
3
When someone really likes a product, but that product is not necessary to stay alive, the product is ___.
A)a scarcity
B)a service
C)a need
D)a want
4
Not going to a movie with friends in order to study is an example of _____.
A)cost-benefit analysis
B)opportunity cost
C)macroeconomics
D)microeconomics
5
A mortgage payment is an example of a _____.
A)fixed cost
B)flexible cost
C)variable cost
D)marginal cost
6
The extra cost of producing one additional unit of output is called the _____.
A)unit price
B)variable cost
C)marginal cost
D)output price
7
A cost-benefit analysis is useful in _____.
A)determining the number of employees to hire
B)figuring corporate income taxes
C)creating presentations for the Board of Directors
D)deciding WHAT, HOW, and FOR WHOM to produce
8
Economics is the study of how we make decisions in a world in which _____.
A)wants are limited.
B)resources are limited
C)government does not interfere
D)businesses are regulated
9
Under _____, businesses are allowed to compete for profit with minimal government interference.
A)free enterprise
B)planned economies
C)traditional economies
D)socialist rule
10
____ is the branch of economics that deals with the performance of an economy as a whole.
A)Macroeconomics
B)Microeconomics
C)Free enterprise capitalism
D)Cost-benefit analysis
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