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Unit 1 Economics

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.
__________study of how people (including companies/countries) make choices on buying, selling, using, and distributing goods/services.
a)
Economics
b)
Consumer Science
c)
Opportunity Costs
2.
Government is the study of getting rich and the stock market.
a)
True
b)
False
3.
Basic Economic Problem: Mismatch of unlimited wants and needs and unlimited economic resources.
a)
True
b)
False
4.
__________ Things required to live such as food, shelter, clothing, air
a)
Need
b)
Want
c)
Tradeoff
5.
____________ The actual thing you gave up to have something else. Everything has a cost
a)
Opportunity Cost
b)
Tradeoff
c)
Incentive
6.
_____________ anything that it used to make a good or service.
a)
Resources
b)
Good
c)
Service
7.
The two branches of economics are micro & macro. 
a)
True
b)
False
8.
Money's only real benefit is as a medium of exchange
a)
True
b)
False
9.
Money must be durable, portable, and stable
a)
True
b)
False
10.
_____________ network of institutions, markets, and contracts that bring lenders and borrowers together
a)
Financial system
b)
banks
c)
Private Enterprise
11.
Thomas Malthus: population growth would outpace food production (didn’t take into account advancement in technology, agricultural production, or transportation).
a)
True
b)
False
12.
David Ricardo is also known as the father of economics
a)
True
b)
False
13.
_______________ father of economics, wrote the wealth of nations, and believed in a concept known as the invisible hand. 
a)
Adam Smith
b)
David Ricardo
c)
Thomas Malthus
14.
____________  supply & demand determines what gets produced
a)
Free Market Economy
b)
Closed Economy
c)
Socialism
15.

_____________________ study of production, employment, prices, and policies (will unemployment rise if there is an increase in taxes)

a)

Macroeconomics

b)

Microeconomics

c)

Opportunity Cost

16.

______________ not having enough resources to satisfy all of the needs/wants

a)

Scarcity

b)

Opportunity Cost

c)

Tradeoff

17.

Money is a medium of exchange, store of value, and a unit of account, durable, portable, divisible, and uniform.

a)

True

b)

False

18.

_____________ not enough of something that people want

a)

Scarcity

b)

Opportunity Cost

c)

Tradeoff

19.

Scarcity forces people to_____________________

a)

Make Choices

b)

satisfy all their wants and needs

c)

Give up opportunity cost

20.

The method a country uses to answer the three economic questions

a)

Economic System

b)

Economic Resources

c)

Capitalism