FREE! Click here to Join FunTrivia. Thousands of games, quizzes, and lots more!

Economic Basics Trivia Quiz

This quiz contains questions about basic economic concepts.

A multiple-choice quiz by rldonlon. Estimated time: 4 mins.

Author
rldonlon

Time
4 mins

Type
Multiple Choice

Quiz #
349,095

Updated
Dec 03 21

# Qns
10

Difficulty
Average

Avg Score
6 / 10

Plays
912

One at a Time - Single Page - Timed Game

Question 1 of 10

1. Which of the following is NOT a way the United States government promotes competition? Hint

By enforcing anti-trust laws

By trading with foreign countries

By supporting business start-ups

By imposing taxes on exports

NEXT>

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

Decreases the discount rate

Increases the reserve rate

Sells government securities (bonds)

Cuts taxes

NEXT>

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

How many consumers and producers are in the marketplace

The amount of government involvement in decision making.

Voter participation levels

How educated the citizens are in that country

NEXT>

Question 4 of 10

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

Government controlled prices

More choices

Higher quality products

Lower prices

NEXT>

Question 5 of 10

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

Establish guidelines for public health and safety

Write contracts for consumers

Ask the Supreme Court to research businesses

Approve all consumer contracts before they go into effect

NEXT>

Question 6 of 10

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

Consumer sovereignty

Government ownership of resources

Competition

Individual choice

NEXT>

Question 7 of 10

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

Partnerships

Private financial institutions

Corporations

Public goods and services

NEXT>

Question 8 of 10

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

Tradition

Command

Free Market

Mixed Market

NEXT>

Question 9 of 10

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

Kenny sells cookies at a bake sale

Annie buys and drinks a coffee at Starbucks

Sam buys and wears new sneakers

Jody pays a plumber to fix her drain

NEXT>

Question 10 of 10

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

labor, land, capital

proprietorships, partnerships, corporations

legislative, executive, judicial branches

individuals, businesses, government

(Optional) Create a Free FunTrivia ID to save the points you are about to earn:

Select a User ID:

Choose a Password:

Your Email:

Most Recent Scores

Dec 11 2024 : Guest 69: 8/10
Oct 26 2024 : matthewpokemon: 2/10

Score Distribution

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.