WorksheetsUnit 3 Economics
Total questions: 22
Worksheet time: 11mins
Name
Class
Date
1.
study of how the allocation of resources affects economic well-being.
a)
welfare economics
b)
GDP
c)
Consumer Surplus
2.
When a transaction between a buyer and seller directly affects a third party, the effect is called an
a)
Externality
b)
uncompensated mistake
c)
Consumer Surplus
3.
A consumers budget constraint shows the possible combinations of different goods they can purchase given their income
a)
income and price of goods
b)
decisions
c)
unlimited budget
4.
is an abstract measure of the satisfaction that a consumer receives from a bundle of goods and service
a)
Economic Utility
b)
Producer Surplus
c)
Cost of Production
5.
The ability to produce more output, per work, per hour. a country's standard of living depends on its ability to produce goods/services.
a)
Productivity
b)
Sales
c)
Cost
6.
The determinants of productivity only include natural resources.
a)
True
b)
False
7.
The determinants of productivity include: physical capital, human capital, natural resources, and technological knowledge.
a)
True
b)
False
8.
________companies that produce more can utilize mass production techniques and spread out fixed costs over many units.
a)
Economies of Scale
b)
Marginal cost
c)
gdp
9.
as you add variable resources (workers) to fixed resources (like equipment) the additional output generated will eventually diminish.
a)
economies of scale
b)
marginal cost
c)
law of diminishing returns
10.
cost of something is what you give up to get it. The opportunity cost of an hour of leisure is the amount of money that would have been earned if that hour were spent at work
a)
Opportunity Cost
b)
Trade Off
c)
Explicit Cost
11.
capital: the equipment and structures used to produce goods and services.
a)
True
b)
False
12.
the relationship between quantity of inputs used to make a good and the quantity of output of that good.
a)
production function
b)
productivity
c)
marginal product
13.
Every transaction must include a buyer and a seller
a)
True
b)
False
14.
is the market value of all final goods and services produced within a country in a given period of time.
a)
GDP
b)
Cost
c)
Microeconomics
15.
GDP measures the total income and total expenditure
a)
True
b)
False
16.
Microeconomics is the study of economy wide
a)
true
b)
false
17.
Microeconomics involves how consumers make decisions, taxes, and what products to produce
a)
True
b)
False
18.
Macroeconomics looks at the bigger picture and involves prices and inflation rates & employment.
a)
True
b)
False
19.
government budget deficits raise real interest rates, crowd out domestic investment, because the currency to appreciate, and push the trade balance toward deficit.
a)
Open Economy
b)
Closed Economy
c)
Microeconomics
20.
Circular Flow Diagram: Simple depiction of macroeconomics Illustrates GDP as spending, revenue, and income
a)
True
b)
False
21.
a measure of the overall cost of the goods and services bought by a typical consumer.
a)
CPI
b)
GDP
c)
Externalities
22.
a measure of the overall cost of the goods and services bought by a typical consumer.
a)
CPI
b)
GDP
c)
Externalities
100 %
