2.what's the term for the idea that there aren't enough resources to satisfy everyone's wants and needs?

a. scarcity

b. consumer

c. demand

d. supply

3.if a worker is free to quit a job and find a new job at another place of employment, what us economic goal has been met?

a. economic stability

b. economic freedom
c. economic justice

d. economic security

4.a tractor to with farm work would be an example of what kind of economic resource?

a. a farm resource

b. a human resource

c. a capital resource

d. a natural resource

5.why are people with savings hurt by inflation?

a. the money they saved in the past is worth less in the future.

b. inflation reduces the interest savings accounts pay.

c. inflation discourages people from saving.

d. the money is worth more now than it was in the past, leading to a higher tax bill.

6.who decides how goods and services will be produced in a command economy?

a. private business owners

b. entrepreneurs

c. the government

d. individual consumers

7. what role does an entrepreneur play in the making of goods and services?

a. the entrepreneur harvests the natural resources.

b. the entrepreneur brings together the factors of production into workable businesses.
c. the entrepreneur provides the labor for a business.

d. the entrepreneur buys goods that are made.

8.which economic system has economic roles that are passed from generation to generation?

a. market

b. generational

c. traditional

d. command

9.in a market economy, who decides what will be produced?

a. government

b. traditions

c. managers

d. consumers

10.what tool does the us government use to keep track of inflation throughout the years?

a. the inflation scale

b. the monetary supply

c. the value calculator

d. the consumer price index

11.banks get most of the money to loan out to people from

a. taxes charged by banks.

b. the government.

c. other banks.

d. people that deposit money in the bank for safekeeping.

12.prices are important to the us economy because they

a. determine the quality of a product.

b. let you know how much an item costs.
c. are set by the us government.

d. act as signals to buyers and sellers.

13.one of the benefits of competition in an economy is that competition

a. results in economic security.

b. always results in higher wages.

c. results in higher prices.

d. creates better and more services

14.which type of currency is now in use in the united states?

a. cash money

b. commodity money
c. fiat money

d. specie money

15.what might cause a consumer to have an elastic demand for a product?

a. the product is a necessity.

b. the product is priced at $5.

c. the product isn't a necessity.

d. the product was produced outside of the united states.

16.which of the following would be a human resource in terms of the factors of production?

a. wood to make a table

b. the time a woodworker puts into carving a table

c. a hammer and saw used to construct a table

d. the money used to purchase supplies to build a table

17.the profit motive is important to a market economy because it

a. encourages people to open businesses and invent new products.
b. allows the government to collect extra in taxes.

c. allows workers to get paid.

d. encourages consumers to buy more products.

18.what term describes the rise in prices of most goods and services?

a. recession

b. deflation

c. inflation

d. inelasticity

19.commercial banks create money by

a. printing money as the needs of the economy change.

b. borrowing money from other banks.

c. accepting loan payments that are made on time.

d. making loans while only keeping a fraction of deposits in cash on hand at any given time.

20.which of the following would be an example of a service?

a. a pair of shoes

b. a television

c. a wooden shelf

d. a waiter serving food