Personal Finance 2.06 Quiz – Economic Basics

What is scarcity? Scarcity is when people want more of something than is available.
Which of the following producers is a producer of services? Raul, who fixes cars, is a producer of services.
Which of the following is not something that money does in an economy? Money does not keep the rate of inflation low.
The teenage market is a market that is categorized in what way? The teenage market is categorized by consumer.
Which of the following is not a characteristic of a weak economy? A low unemployment rate is not a characteristic of a weak economy.
Which economic system has the most government control? A planned economy
Which of the following is a feature of capitalism? Competition between businesses is a feature of capitalism.
A company that is most motivated to make money has a ___________. Profit motive
A store that sells books and a store that sells tools are what type of competitors? Noncompetitors
What is capital as a factor of production? Capital as a factor of production is the tangible goods created by labor.
What is demand? Demand is the amount of something that consumers want.
Which of the following will probably happen to a product when demand is low? When demand for a product is low, the price will go down.
What might happen to a product when supply is low? When supply is low, the price of a product will go up.
Which of the following might financial planning help you do? Financial planning might help you keep track of earning and spending.
Joey owns a shoe store in a neighborhood with other shoe stores. Demand for the products he sells is probably ____________. Elastic

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