VIRTUAL SC ECONOMICS CP EXAM PREP
QUESTIONS AND ANSWERS 2026 STUDY
GUIDE
◉ The study of economics involves ________________
a) explaining how people deal with scarcity
b) studying how things are made, bought, sold, and used
c) explaining how incomes are earned and how jobs are created
d) all of these. Correct Answer: D
◉ Which of the following descriptions best explains the meaning of
opportunity cost?
a) the initial cost of starting a new business
b) the cost of business failure
c) the cost of choosing one alternative over another
d) the risk associated with producing a new item. Correct Answer: C
◉ A nation's wealth is determined by its ______________
a) accumulation of all tangible and intangible resources
b) natural resources
c) accumulation of all tangible products
d) product possibilities frontier. Correct Answer: C
,◉ Consumers waiting in long lines for a new product is an example of
___________
a) consumerism
b) consumer rights
c) consumer responsibilities
d) scarcity. Correct Answer: D
◉ The efficient use of scarce resources leads to an increase in
____________
a) productivity
b) investment
c) scarcity
d) capital. Correct Answer: A
◉ The most comprehensive measure of a nation's wealth is provided by
its ______________
a) gross domestic product
b) TINSTAAFL rating
c) product possibilities curve
d) capital goods. Correct Answer: A
, ◉ When a business needs to decide whether a certain action is worth the
cost, the most helpful analysis would be a(n) ___________
a) production possibility comparison
b) cost-benefit analysis
c) economic model
d) needs assessment. Correct Answer: B
◉ What is the main cause of a change in quantity demanded?
a) substitution
b) changes in revenue
c) change in price
d) the income effect. Correct Answer: C
◉ What is the relationship between income and demand?
a) a decrease in income increases demand
b) a decrease in price decreases income
c) an increase in price increases income
d) an increase in income increases demand. Correct Answer: D
◉ When the price of something increases, the quantity demanded
___________
a) increases
QUESTIONS AND ANSWERS 2026 STUDY
GUIDE
◉ The study of economics involves ________________
a) explaining how people deal with scarcity
b) studying how things are made, bought, sold, and used
c) explaining how incomes are earned and how jobs are created
d) all of these. Correct Answer: D
◉ Which of the following descriptions best explains the meaning of
opportunity cost?
a) the initial cost of starting a new business
b) the cost of business failure
c) the cost of choosing one alternative over another
d) the risk associated with producing a new item. Correct Answer: C
◉ A nation's wealth is determined by its ______________
a) accumulation of all tangible and intangible resources
b) natural resources
c) accumulation of all tangible products
d) product possibilities frontier. Correct Answer: C
,◉ Consumers waiting in long lines for a new product is an example of
___________
a) consumerism
b) consumer rights
c) consumer responsibilities
d) scarcity. Correct Answer: D
◉ The efficient use of scarce resources leads to an increase in
____________
a) productivity
b) investment
c) scarcity
d) capital. Correct Answer: A
◉ The most comprehensive measure of a nation's wealth is provided by
its ______________
a) gross domestic product
b) TINSTAAFL rating
c) product possibilities curve
d) capital goods. Correct Answer: A
, ◉ When a business needs to decide whether a certain action is worth the
cost, the most helpful analysis would be a(n) ___________
a) production possibility comparison
b) cost-benefit analysis
c) economic model
d) needs assessment. Correct Answer: B
◉ What is the main cause of a change in quantity demanded?
a) substitution
b) changes in revenue
c) change in price
d) the income effect. Correct Answer: C
◉ What is the relationship between income and demand?
a) a decrease in income increases demand
b) a decrease in price decreases income
c) an increase in price increases income
d) an increase in income increases demand. Correct Answer: D
◉ When the price of something increases, the quantity demanded
___________
a) increases
