Economics Quiz
1. To ______________ is to buy or bring goods into a country.
a. Trade
b. export
c. barter
d. import
2. A _________________ country has a strong economy built on industry.
a. developing
b. developed
c. market
d. command
3. An economic practice where goods and services are exchanged instead of money.
a. export
b. balance of trade
c. barter system
d. import
4. Why do countries impose tariffs?
a. to cut down on taxes
b. to stop people from buying imported goods
c. to increase the demand for products d. to encourage people to buy imported goods
5.



Factories are owned by the government
Government decides what will be produced
Variety of products is defined by the government
What type of economic system is described above?
a. Market Economy
b. Command Economy
c. Democracy
d. Traditional Economy
6. The basic concept of supply and demand states: If supply is low and the demand is high, the price is ______. If
the supply is high and the demand is low, then the price is __________.
a. Low, Low
b. Low, High
c. High, High
d. High, Low
7. To _____________ is to send/ship/sell goods to another country.
a. barter
b. export
c. sale
d. import
8. A long period of severe downturn in economic activity with high loss of jobs and very low investment.
a. stock market
b. emerging market
c. depression
d. recession
9. A short period of slight downturn in economic activity.
a. recession
b. closed market
c. emerging market
d. depression
10. A fee or a tax placed on imported goods.
a. export
b. import
c. tariff
d. barter
11. Which of these is most associated with an economic depression?
a. higher pay for workers
b. increased consumer spending
c. higher prices for goods
d. increased business failure
12. Inflation can be described as
a. a prolonged rise in prices
c. shortage of government aid
b. a decrease in prices
d. shortage of goods
13. In a ______________economy, individuals make choices about what to make, sell, and buy.
a. market
b. command
c. traditional
d. communist
Adam Smith wrote about reasons people trade in his 1776 economics book, The Wealth of Nations:
“Whoever offers to another a bargain of any kind, proposes to do this [trade]. Give me that which I want, and you shall
have this which you want, is the meaning of every such offer. …It is not from the benevolence [kindness] of the butcher,
the brewer, or the baker that we expect our dinner, but from their regard [attention] to their own interest.” -from The
Wealth of Nations
14. According to the passage, people trade because they
a. they hope to show kindness toward others.
b. they want to satisfy their own needs and wants.
c. they have to obey their governments. d. they need to get around unfair laws.
15. According to the passage, what action primarily takes place when people trade with each other?
a. a meeting of minds on common issues.
b. an agreement to protect one another
c. an exchange of goods on the basis of self-interest
d. a willingness to respect each other’s differences
16. What is Economics?
a. The study of how people make, distribute, and consume goods.
b. Employment, gross domestic product, growth
c. Deals with behavior and decision making
d. A rise in prices
17. What is scarcity?
a. giving up something to have something else
b. extra cost of producing one additional unit of production
c. The condition that results from society not having enough resources to produce all the things people
would like to have
d. A rise in the general level or prices
18. Name three types of economies.
a. Traditional, command, market
c. traditional, market, competitive
b. command, market, competitive
d. command, traditional, competitive
19. What is microeconomics?
a. The area of economics that deals with the behavior and decision making of individual households and
private companies
b. The area of economics that deals with the behavior and decisions of the whole world.
c. The branch of economics that deals with the economy as a whole country
d. The branch of economics that deals with the monetary value
20. What is macroeconomics?
a. the branch of economics that deals with the monetary value.
b. The area of economics that deals with behavior and decision making of individual households.
c. The branch of economics that deals with the economy of the whole country.
d. The area of economics that deals with the behavior of your personal life.
21. In which type of economy will you most likely find an entrepreneur?
a. Command b. traditional
c. market
22. Today, most of the world’s countries take part in some form of international trade. This process is called:
a. tariffs
b. inflation
c. command economy d. globalization
23. The scarcity of a resource can most directly affect which economic process?
a. Supply & demand
b. entrepreneurship
c. opportunity cost
b.
d. none of these
24. 2014 is in which century?
a. 19th
b 20th c. 21st d. 22nd
25. Which of the following are in the correct order?
a. 200 A.D., 5000 BC, 350 AD, 6 BC, 1 AD
b. 5000 BC, 6 BC, 1 AD, 200 AD, 350 AD
c. 1 AD, 6 BC, 200 AD, 350 AD, 5000 BC
d. 6 BC, 5000 BC, 1 AD, 350 AD, 200 AD,
In 3-4 sentences describe the differences between the three different types of economies and give examples of the
way of life in each type of economy. Choose the type of economy you think works the best. In 2-3 sentences, explain
why that economy works the best in comparison to the others using specific evidence from what you have learned about
each type of economy.