WorksheetsCh. 1 What is Economics
Total questions: 35
Worksheet time: 18mins
Name
Class
Date
1.
work that is performed for someone
a)
good
b)
service
c)
human capital
d)
market
2.
location or other mechanism that allows buyers and sellers to exchange a certain economic product
a)
land
b)
capital
c)
market
d)
sservice
3.
an item that is economically useful or satisfies an economic want
a)
good
b)
service
c)
need
d)
value
4.
a measure of the amount of output produced by a given amount of inputs in a specific period of time
a)
paradox of value
b)
wealth
c)
trade-off
d)
productivity
5.
the sum of the skills, abilities, health, and motivation of people
a)
human capital
b)
paradox of value
c)
economics
d)
production
6.
Diagram representing maximum combinations of goods and/or services an economy can produce when all resources are fully employed
a)
cost-benefit analysis
b)
production possibilities frontier
c)
factors of production
d)
paradox of value
7.
A good that will not last three years
a)
durable good
b)
non-durable good
c)
utility
d)
capital
8.
A good that will last more than at least three years
a)
durable good
b)
non-durable good
c)
utility
d)
capital
9.
the situation in which some non-necessities have a much higher value than other necessities
a)
capital good
b)
production possibilities frontier
c)
opportunity cost
d)
paradox of value
10.
Manufactured goods needed to produce other goods and services are called ________.
a)
non-durable goods
b)
consumer goods
c)
capital goods
d)
Gross Domestic Product (GDP)
11.
The study of economics is important because it enables us to _____
a)
increase consumption of consumer goods
b)
determine what goods ought to be produced
c)
become better decision makers
d)
describe our standard of living
12.
The dollar value of all final goods and services and the most comprehensive measure of a country's total production output is
a)
its standard of living
b)
Gross Domestic Product (GDP)
c)
financial capital
d)
a cost benefit analysis
13.
The money used to buy the tools and equipment needed for production is known as
a)
capital goods
b)
financial capital
c)
the factors of production
d)
wealth
14.
Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of
a)
opportunity costs
b)
trade-offs
c)
specialization
d)
economic interdependence
15.
What is the fundamental problem of economics?
a)
scarcity
b)
the factors of production
c)
capital
d)
labor
16.
Which of the following lists the four factors of production?
a)
land, labor, wants, entrepreneurs
b)
labor, needs, capital, entrepreneurs
c)
land, labor, capital, scarcity
d)
land, labor, capital, entrepreneurs
17.
Division of labor refers to _____
a)
the process of creating goods and services
b)
the use of the four factors of production
c)
arranging work so that individual workers do fewer tasks than before
d)
performing one task relatively less efficiently than another.
18.
Which of the following is NOT a basic economic question?
a)
WHAT to produce
b)
FOR WHOM to procue
c)
WHEN to produce
d)
HOW to produce
19.
The study of economics includes all of the following EXCEPT
a)
description
b)
prediction
c)
production
d)
analysis
20.
For something to have value, it must ____
a)
cost a lot of money
b)
be on sale
c)
have utility
d)
never go out of style
21.
Which of the following is an example of a service?
a)
hairspray
b)
scissors
c)
blow dryer
d)
hair cut
22.
Imagine you buy a soccer ball for $35. What is the opportunity cost of buying that soccer ball?
a)
Time spent deciding to spend your money
b)
$35 cash
c)
Something else you could have bought
d)
The time spent making the purchase and the tax paid on the ball
23.
A cell phone provided to an individual by his employer for business purposes is a
a)
consumer good
b)
service
c)
capital good
d)
capital service
24.
A computer that is bought for household use is a
a)
consumer good
b)
service
c)
capital good
d)
capital service
25.
Each region of the United States producing mainly the crops they are best at (Idaho - Potatoes, Iowa - Corn, etc.) is an example of ______
a)
Specialization
b)
Gross Domestic Product
c)
Division of labor
d)
Production
26.
Which of the following is an example of a good?
a)
A car
b)
A tune-up
c)
An oil change
d)
A car wash
27.
What is economic interdependence?
a)
The reliance on others to provide goods and services
b)
The relationship between the four factors of production
c)
The ability to produce all goods and services
d)
The result of a division of labor
28.
Condition that results from society not having enough resources to produce all the things people would like to have
a)
capital
b)
utility
c)
scarcity
d)
wealth
29.
A factor of production that includes natural resources not created by humans
a)
land
b)
labor
c)
capital
d)
entrepreneur
30.
Factor of production that involves risk takers in search of profits who does something new with existing resources.
a)
land
b)
labor
c)
capital
d)
entrepreneurs
31.
The tools, equipment, machinery, and factories used in the production of goods and services
a)
labor
b)
factors of production
c)
specialization
d)
capital
32.
A way of thinking about a problem that compares the costs of an action to the benefits received
a)
production possibilities frontier
b)
cost-benefit analysis
c)
paradox of value
d)
factors of production
33.
The cost of the next best alternative use of money, time, or resources when one choice is made rather than another
a)
opportunity cost
b)
productivity
c)
financial capital
d)
human capital
34.
The study of how people try to satisfy unlimited wants and needs with limited resources
a)
trade-offs
b)
economics
c)
factors of production
d)
civics
35.
Where consumers and privately owned businesses answer the three basic economic questions
a)
traditional economy
b)
command economy
c)
free enterprise economy
d)
mixed economy
100 %
