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The Economic Process Quiz #2

True/False
Indicate whether the statement is true or false.
 

 1. 
Changes in one part of the Producers-Consumers-Distributors relationship has an effect on all other parts.
 

 2. 
Supply and demand affect the amount of goods and services produced and purchased.
 

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 3. 
Which of the following do NOT contribute to economic interdependence?
a.
Producers
c.
Distributors
b.
Government
d.
Consumers
 

 4. 
Which of the following parts of the Business Cycle can be skipped in certain situations?
a.
prosperity
b.
recession
c.
depression
d.
recovery
 

 5. 
Which of the following factors doesn’t normally affect consumer demand?
a.
income
c.
substitutes
e.
consumer tastes
b.
fads
d.
production costs
 

Multiple Response
Identify one or more choices that best complete the statement or answer the question.
 

 6. 
Choose all that are correct.
Distributors....
 a.
buy goods and services from producers.
 b.
pay wages and benefits to consumers for labor used in production
 c.
sell goods and services to consumers
 d.
work for producers to earn wages and benefits
 e.
turn economic resources into factors of production
 

Completion
Complete each statement.
 

 7. 
The good or service that you give up when you choose another good or service is known as _________________   ________________.
 

 

 8. 
________________ sell their labor to Producers.
 

 

 9. 
________________ sell produced goods and services to distributors.
 

 

 10. 
Terms or phrases that describe this state of the Business Cycle are:
-decreased confidence in the economy
-reduction in spending
-increased unemployment
What is the state of the business cycle?
 

 



 
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