Types of Economic Systems Quiz

Choice & Opportunity Cost Quiz
Grades 7 – 9

1. Why do people have to make choices?
Resources are unlimited
Resources are limited
Choices are optional

2. Which of the following is a resource?
Money
Land
All of the above

3. Individuals choose how to use their:
Machines
Money
Factories

4. Businesses choose how to use:
Workers and machines
Laws
Schools

5. Governments choose resources to:
Benefit the largest number of people
Make profit
Stop production

6. Choosing one option means:
All options are chosen
Nothing is lost
Giving up another option

7. Opportunity cost is:
Extra profit
The benefit you give up
Government tax

8. Opportunity cost happens because:
Resources are unlimited
People make choices
Demand is high

9. If land is used for a hotel, what is lost?
Tourism
Farming benefits
Profit

10. The lost farming benefit is called:
Competition
Productivity
Opportunity cost

11. Goods in a market economy are produced to meet:
Government plans
People’s demand
Traditions

12. Businesses want to be efficient to:
Reduce work
Increase profits
Stop competition

13. People work harder to improve their:
Standard of living
Taxes
Pollution

14. Higher productivity helps:
Only businesses
The whole economy
Only workers

15. Competition encourages:
Innovation
Laziness
Unemployment

16. One disadvantage of a market economy is:
Innovation
Focus on profit over essential services
High productivity

17. Some workers may receive:
High wages
Very low wages
No work rules

18. Who may be excluded in a market economy?
People who cannot work
Business owners
Consumers

19. Overproduction means:
Making too few goods
Making too many goods
Importing goods

20. Pollution is an example of:
Environmental cost
Profit
Demand

21. Choice means:
Selecting one option
Having everything
No decision

22. Opportunity cost is:
What you gain
What you give up
What you save

23. Productivity means:
Working slowly
Efficient production
Selling goods

24. Competition happens when businesses:
Avoid customers
Try to attract customers
Close shops

25. Market competition mainly benefits:
Consumers
Only producers
Government