Questions & Answers
Browse all 18 questions from the
Elementary Economics Fundamentals study set below.
Each question shows the correct answer — select a study format above to practice interactively.
1
What is the name for the amount of a good or service that producers are willing and able to offer for sale at a given price?
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A
Demand
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B
Scarcity
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C
Supply
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D
Inflation
2
When the price of a good goes up, what generally happens to the quantity demanded by consumers, assuming all other factors remain the same?
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A
It increases
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B
It decreases
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C
It stays the same
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D
It doubles
3
What does the term 'scarcity' in economics refer to?
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A
When there is too much of a good
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B
When resources are unlimited
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C
When wants exceed the resources available to satisfy them
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D
When prices are too low
4
Which of the following is a basic need that people require to survive?
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A
A new video game
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B
A fancy car
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C
Food
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D
A larger television
5
What is the term for the next best alternative that must be given up to obtain something else?
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A
Profit
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B
Opportunity Cost
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C
Budget
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D
Commodity
6
Which of these is an example of a 'service' that a person can provide?
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A
A loaf of bread
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B
A bicycle
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C
A haircut
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D
A toy car
7
What is the main function of a bank in an economy?
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A
To print money
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B
To lend money and accept deposits
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C
To create new goods
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D
To set all prices
8
If a country produces more of one good, what must it generally give up to produce more of another, due to limited resources?
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A
More money
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B
Less money
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C
Another good
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D
No change
9
What is the term for the money earned from working or selling goods and services?
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A
Expense
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B
Debt
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C
Income
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D
Tax
10
Which economic concept explains that consumers will buy more of a product when its price is lower?
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A
Law of Supply
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B
Law of Demand
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C
Law of Scarcity
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D
Law of Inflation
11
What is a 'good' in economics?
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A
An action that helps someone
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B
A physical item that can be bought or sold
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C
A plan for spending money
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D
A type of investment
12
When producers make more of a good or service, and the price is higher, what generally happens to the quantity supplied?
-
A
It decreases
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B
It stays the same
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C
It increases
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D
It becomes zero
13
What is the term for the amount of money that is spent on goods and services?
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A
Income
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B
Profit
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C
Revenue
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D
Expenditure
14
Which of the following is a 'want' rather than a 'need'?
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A
Water
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B
Shelter
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C
A toy
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D
Medicine
15
What is the process of making goods and services available to people?
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A
Consumption
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B
Production
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C
Distribution
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D
Regulation
16
When many people want to buy a limited item, what usually happens to its price?
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A
It goes down
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B
It stays the same
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C
It goes up
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D
It disappears
17
What is the primary role of a consumer in an economy?
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A
To create goods
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B
To buy and use goods and services
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C
To set prices
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D
To borrow money
18
What does a 'budget' help individuals or families to do?
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A
Spend all their money
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B
Save money
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C
Plan how to spend and save their money
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D
Borrow more money
