Economics Unit: Lesson 1 Quiz

How is macroeconomics different from microeconomics? Macroeconomics deal with individuals Microeconomics are used in small countries Macroeconomics are used by large industries Microeconomics are used in communist nations Which of these is a characteristic of a nation with free enterprise capitalism? Businesses compete for profit with little government interference. Government controls the types of products produced. No competition means the prices will always be high. There is a high chance of monopolies. Which of these is NOT a positive feature of capitalism? There is a lot of choice for consumers. High consumer demand leads to more manufacturing of a product. Small groups may control a large amount of wealth. Citizens are free to own their own business. Materials that meet and satisfy human needs are _. services goods resources capital Which of these would be an example of a trade-off? A nation's government controlling the production of goods. Two businesses joining to build a bigger business. A low supply of a product leading to a low price for that item. A student deciding to stay home and study for a test instead of playing video games at their friend's house. Explain how scarcity could lead to more countries in conflict and war in the future.