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Economics: Introduction Practice Tests

These Grade 9 Social Studies practice tests introduce how people, businesses, and governments make choices with scarce resources. Questions cover scarcity, opportunity cost, incentives, production, specialization, supply and demand, markets, economic systems, trade, and basic economic indicators.

Skills covered

  • Explaining scarcity, opportunity cost, trade-offs, incentives, marginal analysis, and rational choices
  • Identifying land, labor, capital, entrepreneurship, productivity, specialization, division of labor, and human capital
  • Applying demand, supply, equilibrium, shortages, surpluses, market changes, and production costs
  • Comparing market, command, and mixed economies and explaining property rights, competition, public goods, and externalities
  • Understanding comparative advantage, imports, exports, tariffs, GDP, unemployment, inflation, and economic growth

How to use these practice tests

Begin by identifying the scarce resource or economic decision. Then determine the opportunity cost, incentive, market force, or indicator involved and connect it to the evidence in the question.

For more Grade 9 Social Studies practice, return to the Grade 9 Social Studies category.

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Grade 9 Economics: Introduction Practice Tests

Practice Grade 9 Social Studies questions about scarcity, opportunity cost, production, incentives, supply and demand, economic systems, trade, and basic economic indicators.

Choose the best answer. Identify the scarce resource, incentive, market force, economic system, or indicator described and apply the relevant principle.

10 Questions
0/10 Questions0 %
Correct 0
Incorrect 0
Unanswered 10
1. QuestionMultiple choice

What is a market economy?

Please select an answer first.

Correct answer: A

The correct answer is An economy in which many decisions about production and exchange are coordinated through prices and voluntary transactions..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Market economies rely substantially on decentralized choices, prices, competition, and private or voluntary exchange.
  3. Check the answer: The correct answer is An economy in which many decisions about production and exchange are coordinated through prices and voluntary transactions..

Market economies rely substantially on decentralized choices, prices, competition, and private or voluntary exchange.

2. QuestionMultiple choice

What is a command economy?

Please select an answer first.

Correct answer: B

The correct answer is An economy in which central authorities make major decisions about production and allocation..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Command economies use central planning or authority to direct significant resources and production decisions.
  3. Check the answer: The correct answer is An economy in which central authorities make major decisions about production and allocation..

Command economies use central planning or authority to direct significant resources and production decisions.

3. QuestionMultiple choice

What is a mixed economy?

Please select an answer first.

Correct answer: C

The correct answer is An economy combining market decisions with government involvement and public programs..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Most modern economies combine private markets with taxes, regulation, public goods, and government services.
  3. Check the answer: The correct answer is An economy combining market decisions with government involvement and public programs..

Most modern economies combine private markets with taxes, regulation, public goods, and government services.

4. QuestionMultiple choice

Why are property rights important in an economy?

Please select an answer first.

Correct answer: D

The correct answer is They define who may use, control, transfer, or benefit from resources and goods..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Clear property rights can support investment, exchange, stewardship, and accountability, although rights are defined and limited by law.
  3. Check the answer: The correct answer is They define who may use, control, transfer, or benefit from resources and goods..

Clear property rights can support investment, exchange, stewardship, and accountability, although rights are defined and limited by law.

5. QuestionMultiple choice

What is competition among firms?

Please select an answer first.

Correct answer: A

The correct answer is Rivalry to attract consumers, sell products, or earn profits..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Competition can encourage lower prices, better quality, innovation, and efficient use of resources.
  3. Check the answer: The correct answer is Rivalry to attract consumers, sell products, or earn profits..

Competition can encourage lower prices, better quality, innovation, and efficient use of resources.

6. QuestionMultiple choice

What is a public good?

Please select an answer first.

Correct answer: B

The correct answer is A good that is difficult to exclude people from using and can be used by many people at once..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Examples can include national defense or some public information; governments may provide or support public goods because markets may underprovide them.
  3. Check the answer: The correct answer is A good that is difficult to exclude people from using and can be used by many people at once..

Examples can include national defense or some public information; governments may provide or support public goods because markets may underprovide them.

7. QuestionMultiple choice

What is an externality?

Please select an answer first.

Correct answer: C

The correct answer is A cost or benefit of an activity that affects people not directly involved in the transaction..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Pollution is a negative externality, while benefits such as some vaccinations or education can create positive externalities.
  3. Check the answer: The correct answer is A cost or benefit of an activity that affects people not directly involved in the transaction..

Pollution is a negative externality, while benefits such as some vaccinations or education can create positive externalities.

8. QuestionMultiple choice

Why might governments regulate pollution?

Please select an answer first.

Correct answer: D

The correct answer is Pollution creates external costs that private market prices may not fully include..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Regulation, taxes, standards, or permits can help account for environmental costs and protect public health.
  3. Check the answer: The correct answer is Pollution creates external costs that private market prices may not fully include..

Regulation, taxes, standards, or permits can help account for environmental costs and protect public health.

9. QuestionMultiple choice

What is a budget?

Please select an answer first.

Correct answer: A

The correct answer is A plan for expected income and spending over a period of time..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: Budgets help households, businesses, and governments allocate scarce resources among competing priorities.
  3. Check the answer: The correct answer is A plan for expected income and spending over a period of time..

Budgets help households, businesses, and governments allocate scarce resources among competing priorities.

10. QuestionMultiple choice

Why can inflation affect household choices?

Please select an answer first.

Correct answer: B

The correct answer is Rising general prices reduce the purchasing power of a unit of money..

  1. Identify the economics concept: Determine whether the question concerns scarcity, choices, production, markets, trade, or economic indicators.
  2. Apply the economic principle: When the general price level rises, the same amount of money buys fewer goods and services, especially if income does not keep pace.
  3. Check the answer: The correct answer is Rising general prices reduce the purchasing power of a unit of money..

When the general price level rises, the same amount of money buys fewer goods and services, especially if income does not keep pace.

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