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Introduction to Basic Economics

Economics

Test your knowledge of fundamental economic concepts including scarcity, supply and demand, and factors of production.

scarcity market finance

12 Questions Easy Ages 5+ Apr 6, 2026

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About this Study Set

This study set covers Economics through 12 practice questions. Test your knowledge of fundamental economic concepts including scarcity, supply and demand, and factors of production. Every question includes the correct answer so you can learn as you go — pick any format above to get started.

Questions & Answers

Browse all 12 questions from the Introduction to Basic Economics study set below. Each question shows the correct answer — select a study format above to practice interactively.

1 What is the economic term for the situation where there are limited resources but unlimited human wants?

A Scarcity
B Surplus
C Inflation
D Abundance

2 What is the value of the next best alternative that is given up when a choice is made?

A Tax
B Opportunity cost
C Profit
D Interest

3 Which of these is considered a 'capital' resource in the factors of production?

A A forest
B A factory worker
C Machinery
D An entrepreneur

4 According to the Law of Demand, what usually happens when the price of a product increases?

A Demand stays the same
B People buy more
C Supply disappears
D The quantity demanded decreases

5 In which type of economic system are decisions mainly based on customs and beliefs passed down through generations?

A Traditional economy
B Market economy
C Command economy
D Mixed economy

6 Which of the following is classified as an economic 'need' rather than a 'want'?

A A smartphone
B Basic clothing
C A video game
D Movie tickets

7 What is the term for people or businesses that make and sell goods and services?

A Consumers
B Voters
C Producers
D Borrowers

8 What is the term for the system of trading goods and services directly without using money?

A Barter
B Credit
C Investment
D Tariff

9 In economics, what is the term for the human effort, both physical and mental, used to produce goods?

A Land
B Capital
C Entrepreneurship
D Labor

10 What occurs in a market when the quantity supplied is greater than the quantity demanded?

A Shortage
B Surplus
C Equilibrium
D Recession

11 What is the primary function of money when it is used to pay for a haircut?

A Store of value
B Unit of account
C Medium of exchange
D Standard of deferred payment

12 What do we call a person who takes the risk of starting and managing a new business?

A Entrepreneur
B Employee
C Consumer
D Stockholder

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