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Quiz about Economic Basics
Quiz about Economic Basics

Economic Basics Trivia Quiz


This quiz contains questions about basic economic concepts.

A multiple-choice quiz by rldonlon. Estimated time: 4 mins.
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Author
rldonlon
Time
4 mins
Type
Multiple Choice
Quiz #
349,095
Updated
Dec 03 21
# Qns
10
Difficulty
Average
Avg Score
6 / 10
Plays
860
Last 3 plays: AndySed (8/10), Guest 51 (8/10), Guest 31 (7/10).
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Question 1 of 10
1. Which of the following is NOT a way the United States government promotes competition? Hint


Question 2 of 10
2. Which of the following is a way the US Federal Reserve could try to stimulate (speed-up) the economy? Hint


Question 3 of 10
3. Which of the following is a primary characteristic that helps to determine the type of economy a country has? Hint


Question 4 of 10
4. Which of the following is NOT a direct result of competition? Hint


Question 5 of 10
5. Which of the following is a way US federal agencies protect consumers? Hint


Question 6 of 10
6. Which of the following is NOT a characteristic of a free market economy? Hint


Question 7 of 10
7. Banks, savings and loans, credit unions, and brokerage houses are examples of what? Hint


Question 8 of 10
8. The United States has which type of economy? Hint


Question 9 of 10
9. Which of the following is NOT an example of consumption? Hint


Question 10 of 10
10. Which three groups participate in the economic circular flow? Hint



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Most Recent Scores
Mar 15 2024 : AndySed: 8/10
Feb 25 2024 : Guest 51: 8/10
Feb 16 2024 : Guest 31: 7/10

Score Distribution

quiz
Quiz Answer Key and Fun Facts
1. Which of the following is NOT a way the United States government promotes competition?

Answer: By imposing taxes on exports

The US government promotes competition in order to encourage lower prices, higher quality, and more choices. Anti-trust laws prevent monopolies. Supporting business start-ups helps to create more businesses that may compete for the same consumers. Trading with foreign nations creates competition in the global market.
2. Which of the following is a way the US Federal Reserve could try to stimulate (speed-up) the economy?

Answer: Decreases the discount rate

The Federal Reserve stimulates the economy by a combination of lowering the reserve requirement, lowering the discount rate, and buying government securities. Conversely, it may choose to slow down the economy by raising the reserve requirement, raising the discount rate, and selling government securities.
3. Which of the following is a primary characteristic that helps to determine the type of economy a country has?

Answer: The amount of government involvement in decision making.

Little to no government involvement is a free market economy.

Some government involvement combined with supply and demand is a mixed market economy.

High level of government involvement, not allowing the economy operate by supply and demand, is a command economy (also known as centrally planned).
4. Which of the following is NOT a direct result of competition?

Answer: Government controlled prices

Competition is primarily prevalent in both free market and mixed market economies. Command economies lack competition, often resulting in lower prices, few or no choices, and high prices.
5. Which of the following is a way US federal agencies protect consumers?

Answer: Establish guidelines for public health and safety

Federal agencies are put into place to help regulate business practices with the goal of protecting public health and safety.
6. Which of the following is NOT a characteristic of a free market economy?

Answer: Government ownership of resources

A free market economy is based on supply and demand with very little government involvement.
7. Banks, savings and loans, credit unions, and brokerage houses are examples of what?

Answer: Private financial institutions

Private financial institutions encourage saving and investing by providing incentives to consumers.
8. The United States has which type of economy?

Answer: Mixed Market

The United States has a combination of government involvement and allowing supply and demand to influence the economy.

Of the other options, a tradition economy is based on traditions and culture. A Free Market economy involves little to no government control and is based on supply and demand (the "invisible hand").

In a command economy, the government controls what to produce, who produces it, and who gets it.
9. Which of the following is NOT an example of consumption?

Answer: Kenny sells cookies at a bake sale

Consumption is the buying and using of goods and services.

Please note: other prolific chains of hot-drinks vendors are available.
10. Which three groups participate in the economic circular flow?

Answer: individuals, businesses, government

Economic circular flow is the constant flow of money between individuals, businesses, and the government. The government gains revenue primarily through taxing individuals and businesses and spends the money on public goods and services and expenses. Businesses gain revenue through sales of goods and services and spend the money on expenses (often giving money back to other businesses) and human labor (individuals).

Individuals provide services through human labor to businesses and gain revenue in the form of income.
Source: Author rldonlon

This quiz was reviewed by FunTrivia editor stedman before going online.
Any errors found in FunTrivia content are routinely corrected through our feedback system.
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