PFET: Unit 1, Weeks 1 and 2 Review

Charlotte is trying to decide how to use her limited allowance to buy the things she wants and needs. Economics is the study of _________________

• how individuals buy things

• how individuals sell things

• how individuals buy and sell things

• how individuals and society make decisions about ways to use scarce resources to fulfill wants and needs

Evelyn is deciding how to spend her monthly budget on groceries, entertainment, and savings. Is this an example of what microeconomics studies?

• true

• false

Benjamin is learning about economics in school. He wonders if macroeconomics is about the day-to-day decisions that people make every day. Is Benjamin correct?

• true

• false

Sophia is part of a team at a factory, and she asks, "When are we going to produce this product?" Is this question an example of one of the five economic questions?

• true

• false

Oliver is studying different types of economies in his class. He learns about economies where traditions and customs shape the goods and services produced. Which of the following is an example of a traditional economy?

• United States

• North Korea

• Amish society

• Australian economy

In Priya's country, the government decides what goods are produced, how they are produced, and who receives them. This is an example of an economy where___________________

• government has little control of the economy

• the government has total control of the economy

• the government has limited control of the economy

• nothing to do with the economy

In a country where the government allows Olivia and other consumers to freely choose which products to buy, their choices influence how industries and financial markets operate. Is this an example of a market economy?

• false

• true

Sophia is studying different types of economies for her class project. She wants to find an example of a mixed market economy. Which country should she choose?

• North Korea

• Amish society

• United States

• Poland

Benjamin has two job offers. If he chooses one, the opportunity cost is the value of the next best thing he gives up. Is this statement true?

• true

• false

Anika runs a textile factory and produces cotton cloth, which is then sold to clothing manufacturers. In this context, is cotton cloth an example of a capital good?

• false

• true