Economics of the United States of America: Interactive Learning Quizzes

Question 1

What is the term for the total value of all goods and services produced in a country in a year?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Standard of living

Answer

Inflation

Answer

Economic growth

Question 2

What is a basic idea in economics?

Accepted Answer

People usually want more than they can get.

Answer

Trading is the only way to get what you want.

Answer

The president makes all the economic choices for the country.

Answer

Economics is only about making money.

Question 3

Which of these is a fundamental idea in economics?

Accepted Answer

Supply and demand

Answer

The force of gravity

Answer

The Pythagorean theorem

Answer

The theory of relativity

Question 4

What is the main focus of economics?

Accepted Answer

How people make choices about using resources.

Answer

How businesses earn profits.

Answer

How the government manages the economy.

Answer

How to become wealthy.

Question 5

Which of these is NOT a resource used to create products or offer services?

Accepted Answer

Government policies

Answer

Land

Answer

Labor

Answer

Capital

Question 6

What does scarcity mean in economics?

Accepted Answer

We have to make choices about how to use limited resources.

Answer

There is more than enough of everything for everyone.

Answer

We can have as much as we want of everything.

Answer

Only air is scarce, while other resources are abundant.

Question 7

In economics, what resources are used to create products?

Accepted Answer

Land, labor, capital, and entrepreneurship

Answer

Time, effort, and energy

Answer

Ideas, machines, and buildings

Answer

Labor, money, and knowledge

Question 8

What is the main idea of economics?

Accepted Answer

Making choices with limited resources to meet our needs.

Answer

Studying how money moves around a country.

Answer

Learning how to make a profit.

Answer

Saving money for the future.

Question 9

You have $10 and can buy either a toy car or a book. If you buy the toy car, what else could you have bought instead?

Accepted Answer

The book

Answer

Nothing else

Answer

A different toy

Answer

Candy

Question 10

You go to the store to buy your favorite candy bar, but they're out. What does this mean?

Accepted Answer

The candy bar is scarce.

Answer

The candy bar is unlimited.

Answer

The candy bar is abundant.

Answer

The candy bar is expensive.

Question 11

Which of these is NOT a factor of production that businesses use to make products?

Accepted Answer

Schooling

Answer

Natural resources

Answer

Workers

Answer

Tools and equipment

Question 12

When making a toy car, which of the following is used as a factor of production?

Accepted Answer

Wood or plastic

Answer

Money paid for the car

Answer

Air surrounding you

Answer

Idea of a car

Question 13

What are resources used to create goods and services called?

Accepted Answer

Factors of production

Answer

Goods

Answer

Services

Answer

Products

Question 14

Which term refers to the overall well-being of people in a country, including their comfort, health, education, and happiness?

Accepted Answer

Standard of Living

Answer

Gross Domestic Product (GDP)

Answer

Consumer Price Index (CPI)

Answer

Unemployment Rate

Question 15

When the price of something increases, what happens to the number of people who want to buy it?

Accepted Answer

Fewer people want to buy it.

Answer

More people want to buy it.

Answer

The same number of people want to buy it.

Question 16

Jack's mom bought him a new video game. What economic activity did she do?

Accepted Answer

Consumption

Answer

Production

Question 17

When you purchase a toy at a store, which economic activity are you participating in?

Accepted Answer

Consuming the toy

Answer

Producing the toy

Answer

Transporting the toy to the store

Answer

Saving money to buy the toy

Question 18

You have $10 to spend at the school carnival. There are many fun games and tasty treats you want to try, but you can't buy everything. What is this an example of?

Accepted Answer

Scarcity

Answer

Unlimited resources and unlimited wants

Answer

Abundance

Answer

Excess

Question 19

What is a fundamental concept in economics?

Accepted Answer

People have endless desires and needs, but resources are scarce.

Accepted Answer

Prices are set by the interplay of supply and demand.

Answer

The government should manage all economic activities.

Question 20

Which term refers to the overall well-being of people in a country, including their comfort, health, education, and happiness?

Accepted Answer

Standard of Living

Answer

Gross Domestic Product

Answer

Economic Growth

Answer

Inflation Rate

Question 21

What type of paper money do we use to buy things in the United States?

Accepted Answer

Dollar bills

Answer

Gold coins

Answer

Mexican pesos

Answer

Euro bills

Question 22

What step in the economic process occurs when a factory creates toy cars?

Accepted Answer

Production

Answer

Distribution

Answer

Consumption

Question 23

When countries focus on producing different goods and services, what is a potential benefit?

Accepted Answer

Increased production of goods and services

Answer

Reduced variety of options for consumers

Answer

Elimination of the need for trade between countries

Answer

Consistent decrease in prices

Question 24

In a country where there is not enough food for everyone, what economic concept is at play?

Accepted Answer

Scarcity

Answer

Production

Answer

Distribution

Answer

Consumption

Question 25

When there's not enough of a product, what happens to its price?

Accepted Answer

It goes up.

Answer

It goes down.

Answer

It stays the same.

Answer

It depends on the weather.

Question 26

When a company makes toys, what are the three main steps it must complete to create the toys and get them to customers?

Accepted Answer

Getting the materials, making the toys, and delivering them to stores

Answer

Buying toys from other companies, selling them to customers, and helping customers

Answer

Hiring workers, drawing the toys, and setting up a production line

Answer

Studying what people want, guessing how many toys to make, and handling money

Question 27

How do technological advancements affect the economy and our lives?

Accepted Answer

Create new jobs, boost productivity, and drive economic growth.

Answer

Always lead to job losses and economic decline.

Answer

Only benefit big companies, not people or the economy.

Answer

Have no impact on the economy.

Question 28

In a market economy, who ultimately determines which goods and services will be produced?

Accepted Answer

Consumers

Answer

The government

Answer

Business owners

Answer

Everyone in the country

Question 29

In a market economy, how does the concept of 'opportunity cost' primarily influence an individual's decision-making?

Accepted Answer

It compels individuals to think about the benefits they give up when making a choice.

Answer

It requires individuals to only consider the most expensive option available.

Answer

It encourages individuals to make choices based solely on their feelings.

Answer

It prevents individuals from making choices that involve any risk or uncertainty.

Question 30

How does the government help ensure fair markets and protect consumers?

Accepted Answer

Making sure products are safe and preventing fraud

Answer

Setting prices for goods and services

Answer

Owning all the businesses in the country

Answer

Printing all the money in the country

Question 31

Imagine a law that sets a minimum wage, which is the lowest amount employers can pay their workers. What are some possible outcomes of such a law?

Accepted Answer

Some workers with lower skills might lose their jobs because businesses may not be able to afford to pay the higher wages.

Accepted Answer

The gap between the earnings of high-paid and low-paid workers might become smaller.

Accepted Answer

The cost of some products and services might increase because businesses may pass on the higher labor costs to customers.

Answer

There would be more jobs available because businesses would need to hire more workers to meet the increased demand for goods and services.

Question 32

Which of these is NOT a characteristic of capitalism?

Accepted Answer

Government control of businesses

Answer

Private ownership

Answer

Profit as a goal

Answer

Competition between businesses

Question 33

Which of the following resources takes millions of years to form and cannot be replaced naturally?

Accepted Answer

Coal

Answer

Trees

Answer

Water

Question 34

In addition to price, what other factors influence a person's spending decisions?

Accepted Answer

Personal preferences, advertising, and peer influence

Answer

Only personal preferences and price

Answer

Only availability and price

Question 35

Which government action restricts the quantity of goods that can be brought into the country?

Accepted Answer

Import Quota

Answer

Import Tax

Answer

Trade Ban

Question 36

In a progressive tax system, who pays more in taxes?

Accepted Answer

People with higher incomes

Answer

People with the same income

Answer

People with lower incomes

Answer

People who own more property

Question 37

Imagine a new toy called the 'SuperFunToy'. If the price of the 'SuperFunToy' increases, what will happen to its demand?

Accepted Answer

Demand will go down.

Answer

Demand will go up.

Answer

Demand will stay the same.

Answer

Demand will first go up and then go down.

Question 38

When inflation occurs, what happens to the value of savings?

Accepted Answer

Decreases

Answer

Increases

Answer

Stays the same

Question 39

Which of these does NOT affect how much of a product is available?

Accepted Answer

Consumer demand

Answer

Cost of production

Answer

Availability of materials

Answer

Government regulations

Question 40

What are two possible benefits of international trade for a country?

Accepted Answer

More choices of products and services

Accepted Answer

Lower prices for goods and services

Answer

Less need to make things in our country

Answer

No more taxes on imported goods

Question 41

Which policy helps the economy grow while protecting the environment?

Accepted Answer

Tax breaks for businesses using clean energy

Answer

Loans to companies mining coal

Answer

Higher fees on imported goods

Answer

Fewer rules protecting air and water

Question 42

When there are many people who want to buy a product, but the amount of that product available to buy stays the same, what will happen to the price of that product?

Accepted Answer

The price will go up.

Answer

The price will go down.

Answer

The price will stay the same.

Question 43

Tariffs are taxes on goods brought into a country. What is a potential issue with tariffs?

Accepted Answer

They can make goods more expensive for buyers.

Answer

They can create more jobs in a country.

Answer

They can improve the quality of imported goods.

Question 44

What are two benefits of international trade?

Accepted Answer

More choices for consumers

Accepted Answer

Lower costs for businesses

Answer

More pollution

Answer

Less economic growth

Question 45

Who are the individuals who choose to establish and operate new businesses?

Accepted Answer

Entrepreneurs

Answer

Managers

Answer

Investors

Answer

Employees

Question 46

How does the stock market assist businesses in expanding?

Accepted Answer

It enables businesses to raise funds by selling shares of their company.

Answer

It aids businesses in obtaining loans from financial institutions.

Answer

It aids businesses in monitoring their profits and losses.

Answer

It guarantees that all businesses have equal access to resources.

Question 47

When there are more goods available than people want, what happens to prices?

Accepted Answer

Prices go down

Answer

Prices go up

Answer

Prices stay the same

Answer

Prices fluctuate randomly

Question 48

A car is an example of which type of good?

Accepted Answer

Consumer good

Answer

Factory equipment

Answer

Raw materials

Answer

Software license

Question 49

Which of these is a natural resource?

Accepted Answer

Oil

Answer

Computer

Answer

Car

Answer

Stock

Question 50

What is the term for producing large amounts of goods?

Accepted Answer

Mass production

Answer

Luxury goods

Answer

Specialized goods

Answer

Handmade goods

Question 51

In the United States, what is the name of the healthcare system for older adults?

Accepted Answer

Medicare

Answer

National Health Service

Answer

Private insurance

Answer

Medicaid

Question 52

Why do governments create rules for businesses?

Accepted Answer

To protect people's safety

Accepted Answer

To ensure fair competition

Answer

To make money

Answer

To increase employment

Question 53

Which three things tell us how well the U.S. economy is doing?

Accepted Answer

GDP, unemployment rate, inflation rate

Answer

Interest rates, stock prices, consumer confidence

Answer

Population growth, crime rate, education level

Answer

Government spending, tax revenues, trade balance

Question 54

How do new technologies help the economy grow?

Accepted Answer

They help businesses make things faster and cheaper.

Accepted Answer

They create new businesses and jobs.

Answer

They make things more expensive, leading to more spending.

Answer

They reduce jobs, leading to less economic growth.

Question 55

In a capitalist economy, who usually owns the businesses, land, and factories?

Accepted Answer

Private citizens and businesses

Answer

The government

Question 56

You're excited to play with your new toy car, but you know that if you do, you won't have time to finish your homework before bedtime. What do you give up by choosing to play with the toy car?

Accepted Answer

The time you could spend finishing your homework

Answer

The fun you will have playing with the toy car

Answer

The money you could have earned by doing homework

Answer

The punishment you might receive for not finishing your homework

Question 57

Which tax system requires people with higher incomes to pay a larger share of their earnings in taxes?

Accepted Answer

Progressive tax

Answer

Flat tax

Answer

Regressive tax

Answer

Value-added tax

Question 58

Which economic system involves the government making decisions about what goods and services are produced and how they are distributed?

Accepted Answer

Planned economy

Answer

Mixed economy

Answer

Market economy

Answer

Traditional economy

Question 59

Negative externalities are costs that affect people not involved in a transaction. Which of these is an example of a negative externality?

Accepted Answer

A chemical plant that releases harmful chemicals into the air

Answer

A factory that provides jobs to the local community

Answer

A farmer who grows organic produce

Question 60

Economists use three main ways to measure the health of an economy. What are they?

Accepted Answer

Economic growth, inflation, and unemployment

Answer

Income, spending, and investment

Answer

Trade, taxes, and government spending

Question 61

How do companies and countries gain advantages by focusing on producing specific goods or services?

Accepted Answer

Producing goods and services more efficiently

Answer

Producing a smaller variety of products

Answer

Charging higher prices for their products

Answer

Limiting consumer choices

Question 62

Which of these does NOT affect the supply of goods and services?

Accepted Answer

How many people want to buy the goods or services

Answer

Cost of making the goods or services

Answer

Technology used to make the goods or services

Answer

Government rules about making the goods or services

Question 63

What is the name for the amount of a product or service that people want to buy at a certain price?

Accepted Answer

Demand

Answer

Supply

Answer

Balance

Answer

Shortage

Question 64

Which of these is an example of an industry that takes raw materials and turns them into products?

Accepted Answer

Manufacturing

Answer

Farming

Answer

Retail

Answer

Finance