WorksheetsEconomics CBA Review
Total questions: 18
Worksheet time: 9mins
Name
Class
Date
1.
On a Production Possibilities Curve, what does a point on the line represent?
a)
You are using all of your resources
b)
You are making enough product to make a profit
c)
You have resources left over
d)
You do not have the resources to reach that point
2.
On a Production Possibilities Curve, if a point is outside, or above, the line, how can you get there?
a)
Get more resources or invent new technology
b)
You cannot produce at that point
c)
You are using too many resources
d)
You are being efficient
3.
Why is it that having choices can produce negative effects?
a)
You have to give something up to make a choice
b)
Businesses produce too many goods to choose from
c)
People can decide how they want to live
d)
Some choices are good, while other choices are not
4.
Why is scarcity a problem in economics?
a)
There are not enough resources to satisfy peoples wants
b)
The government controls the resources
c)
There are too many resources to choose from
d)
Everyone gets resources, so they are not valuable
5.
Joining the military instead of going to college is an example of...
a)
Opportunity Cost
b)
Profit Motive
c)
Scarcity
d)
Circular Flow
6.
What is one basic decision that all countries must make about their economy?
a)
How to distribute goods and services
b)
How to keep people happy
c)
What kind of money they will print
d)
How much they will sell products for
7.
Which characteristic in Free Enterprise gives people a reason to work, save, and invest?
a)
Private Property Rights
b)
Profit Motive
c)
Consumer Sovereignity
d)
Voluntary Exchanges
8.
When you go to J.C. Penny's, you are visiting which sector of Circular Flow?
a)
Business
b)
Household
c)
Production
d)
Factor
9.
In the Circular Flow model, if resources start to become more expensive, then what happens to businesses and households?
a)
All expenses would increase
b)
Profit and incomes would increase
c)
No effect
d)
Businesses would hire more people
10.
When the price of a good rises,what will happen to the quantity of demand and supply
a)
Demand decreases, supply increases
b)
No change
c)
Demand increases, supply decreases
d)
They will both increase
11.
What happens when an additional sales tax is placed on a good?
a)
The demand curve moves left
b)
The demand curve moves right
c)
The supply curve moves left
d)
The supply curve moves right
12.
What is one non-price determinant of demand?
a)
Change in income
b)
Government subsidy
c)
Productivity levels
d)
Cost of resources
13.
What is the relationship between price and quantity demanded?
a)
They are inverse, or opposite
b)
They will move in the same direction
c)
No relationship
d)
As price increases, supply increases
14.
Where do you find price equilibrium?
a)
Where they two curves cross
b)
In the middle of the graph
c)
On the supply curve
d)
On the demand curve
15.
A price ceiling causes a...
a)
shortage
b)
surplus
c)
higher prices
d)
lower prices
16.
Which type of competition is theory only?
a)
Perfect/pure competition
b)
Monopolistic competition
c)
Oligopoly
d)
Imperfect competition
17.
What is capital?
a)
Machines and equipment
b)
human labor
c)
natural resources
d)
Land the building is on
18.
Name is Austrian economist who wrote "The Road to Serfdom"
a)
Friedrich August Von Hayek
b)
John Maynard Keynes
c)
Adam Smith
d)
Milton Friedman
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