About this Study Set
This study set covers Economics through
18 practice questions.
Basic economic concepts including scarcity, resources, and trade. Every question includes the correct answer so you can learn as you go — pick any format above to get started.
Questions & Answers
Browse all 18 questions from the
Foundations of Economics study set below.
Each question shows the correct answer — select a study format above to practice interactively.
1
What term describes the basic economic problem where wants are unlimited but resources are limited?
-
A
Scarcity
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B
Inflation
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C
Supply
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D
Profit
2
Which of the following is considered a 'natural resource' in economics?
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A
Factory machinery
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B
Skilled labour
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C
Timber
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D
Computer software
3
What do we call the value of the next best alternative that is given up when a choice is made?
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A
Fixed cost
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B
Opportunity cost
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C
Interest rate
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D
Revenue
4
Which sector of the economy involves the extraction of raw materials like farming and mining?
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A
Tertiary sector
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B
Secondary sector
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C
Primary sector
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D
Quaternary sector
5
What is the term for the total amount of a specific good or service that is available to consumers?
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A
Demand
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B
Supply
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C
Consumption
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D
Investment
6
What is the primary medium of exchange used to purchase goods and services in modern economies?
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A
Barter
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B
Credit
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C
Money
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D
Bonds
7
Which of the following is a 'service' rather than a 'good'?
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A
A loaf of bread
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B
A haircut
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C
A mobile phone
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D
A pair of shoes
8
What is the term for a person who buys goods and services for personal use?
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A
Producer
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B
Manufacturer
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C
Consumer
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D
Supplier
9
What do we call a person who creates or provides goods and services?
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A
Consumer
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B
Producer
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C
Investor
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D
Borrower
10
In a simple economic system, what is the exchange of goods and services for other goods and services without money called?
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A
Bartering
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B
Inflation
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C
Importing
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D
Exporting
11
Which of these is an example of 'human capital'?
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A
A tractor
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B
A factory building
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C
The skills and education of a worker
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D
Raw iron ore
12
What is the primary goal of a for-profit business?
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A
To minimize production
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B
To maximize profit
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C
To eliminate competition
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D
To increase taxes
13
What do we call the goods that are brought into a country from another country?
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A
Exports
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B
Imports
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C
Tariffs
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D
Subsidies
14
What do we call the goods that are sent out of a country to be sold in another country?
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A
Imports
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B
Exports
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C
Dividends
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D
Assets
15
Which of the following is a 'capital good' used in production?
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A
A hammer
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B
A sandwich
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C
A movie ticket
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D
A gallon of gasoline
16
What is the term for the increase in the general price level of goods and services over time?
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A
Deflation
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B
Recession
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C
Inflation
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D
Depression
17
Which factor of production refers to the physical and mental effort used to produce goods and services?
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A
Land
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B
Capital
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C
Labour
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D
Technology
18
What is the name for a tax placed on imported goods?
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A
Quota
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B
Tariff
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C
Dividend
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D
Interest
