Economics Worksheet - Multiple Choice Questions

Front

Economics is primarily concerned with which of the following? Use of resources, Methods of production, future cost of goods, values and objectives of a society

Back

Use of resources

Front

The value of the next best alternative that has to be given up for the action that is chosen is the

Back

opportunity cost

Front

All the combinations of goods and services that can be produced in a given time with a fixed amount of resources are called

Back

production possibilities

Front

Land, labor, capital, and entrepreneurship are-

Back

factors of production

Front

A higher price reduces the quantity of a product demanded because:

Back

individuals will buy less of the product and more of its substitutes

Front

A hungry man is willing to pay a high price for food. After he is no longer hungry, he is not willing to pay the same high price. Which of the following best defines this example?

Back

Diminishing marginal utility

Front

Equilibrium is reached when what occurs?

Back

quantity supplied equals quantity demanded

Front

Inflation occurs when

Back

There is a sustained increase in the general price level of goods and services

Front

The term "business cycle" refers to:

Back

Fluctuations in economic activity, such as expansion and contraction.

Front

Unemployment is defined as:

Back

People who are actively seeking work but unable to find employment