WorksheetsUnit 1 Fundamentals Part I
Total questions: 25
Worksheet time: 25mins
Name
Class
Date
1.
The hammer used to build a piece of furniture would be classified as
a)
Entrepreneurship
b)
Human Resource
c)
Physical Capital
d)
Natural Resource
2.
The wood used to build a piece of furniture would be classified as
a)
Entrepreneurship
b)
Human Resource
c)
Physical Capital
d)
Natural Resource
3.
The carpenter's skill used to build a piece of furniture would be classified as
a)
Entrepreneurship
b)
Human Resource
c)
Physical Capital
d)
Natural Resource
4.
The person who started the furniture building business would represent
a)
Entrepreneurship
b)
Human Resource
c)
Physical Capital
d)
Natural Resource
5.
What could be the opportunity cost of spending $25 on a new shirt?
a)
The cost of producing the shirt.
b)
$25
c)
Going to the movies with your friends this weekend.
d)
Knowing your shirt is high quality.
6.
In economics, the idea that there are limited productive resource and unlimited wants is called
a)
Scarcity
b)
Opportunity Cost
c)
Shortage
d)
Efficiency
7.
A company becomes more productive by sending workers to training. This is an example of improving productivity by investing in
a)
natural resources
b)
human capital
c)
physical capital
d)
entrepreneurship
8.
In making a rational decision, which should be greater?
a)
Marginal benefit
b)
Marginal cost
9.
Which of the following could cause a country's production possibilities curve to shift inward to the left?
a)
Funding for education opportunities
b)
Investment in physical capital
c)
An increase in productivity of workers
d)
The workforce ages, and there is a shortage of workers.
10.
The phrase "input to output" can best be associated with
a)
Factors of Production
b)
Scarcity
c)
Entrepreneurship
d)
Productivity
11.
People trade voluntarily if they both expect to
a)
face opportunity costs
b)
gain
c)
eliminate scarcity
d)
have negative incentives
12.
Which of the following would classify as a "Human Resource".
I. Garbage truck driver
II. Skill of the garbage truck driver in driving vehicle.
III. Garbage truck.
I. Garbage truck driver
II. Skill of the garbage truck driver in driving vehicle.
III. Garbage truck.
a)
I only
b)
I and II only
c)
III only
d)
II and III only
13.
Resources used to produce all goods and services are called
a)
Efficiency Markets
b)
Factors of Production
c)
Opportunity Costs
d)
Production Possibilities Curves
14.
Sawyer offers Sinclair his chocolate cookie in exchange for her lemon cookie. Sinclair accepts. This BEST exemplifies
a)
Gain from trade
b)
Opportunity Cost
c)
Fraud
d)
Factors of Production
15.
Dr. Sabin says my parking pass will be taken away if I transport another student in the middle of the day. I tell my friend he can't ride with me. This BEST exemplifies
a)
Gain from Trade
b)
Opportunity Cost
c)
Responding predictably to incentives
d)
Scarcity
16.
"Improvements to that bridge means 500 miles of road will not get paved."
This BEST exemplifies
This BEST exemplifies
a)
Gain from Trade
b)
Opportunity Cost
c)
Responding Predictably to Incentives
d)
Increasing Productivity
17.
An economy is operating at a POINT BELOW the production possibilities curve. This tells us
a)
The society is efficient
b)
The society has increased the number of resources available
c)
There are fewer resources available
d)
The society is inefficient, as in recession
18.
Profit
Improving Society
New Innovation
Job Creation
These are all incentives for
Improving Society
New Innovation
Job Creation
These are all incentives for
a)
Natural Resource owners
b)
Teachers
c)
Entrepreneurs
19.
Going to Whitewater this weekend will be a rational decision if
a)
to make your friends jealous
b)
if the marginal benefit equals or exceeds the marginal cost
c)
if the marginal cost exceeds the marginal benefit
d)
if it costs less than another option
20.
When a country invests in education, training, and the health of its people, which of the following will MOST LIKELY happen
a)
They will go into debt
b)
Standard of living will improve
c)
There will be fewer wars
d)
More people will live in poverty
21.
This production process in the photo is known as
a)
Division of Labor
b)
Factor Maximization
c)
Profit Maximization
d)
Productivity Reduction
22.
Investing in Physical Capital
Improved Technology
Investing in Human Capital
Specialization/Division of Labor
The list above best relates to
Improved Technology
Investing in Human Capital
Specialization/Division of Labor
The list above best relates to
a)
Opportunity Cost
b)
Improved Productivity
c)
Marginal Cost
d)
Irrational Decisions
23.
Zullo-Welding
Esposito-HVAC
Hardin-Cosmetology
Wyche-Phlebotomy
This list is an example of
Esposito-HVAC
Hardin-Cosmetology
Wyche-Phlebotomy
This list is an example of
a)
Scarcity
b)
Productivity
c)
Physical Capital
d)
Specialization
24.
A company moves from point B to point C on their Production Possibilities Curve. What is their opportunity cost?
a)
20 Radios
b)
50 Radios
c)
15 TVs
d)
40 TVs
25.
The shift of the PPC to the right suggests
a)
Scarcity has been eliminated
b)
Productivity of resources has increased.
c)
Opportunity cost is no longer an issue.
d)
Factors of Production have been lost.
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