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WorksheetsCh 1 Introduction to Economics
Total questions: 16
Worksheet time: 9mins
Name
Class
Date
1.
Labor is a type of human resource.
a)
True
b)
False
2.
Tutoring is an example of a service, not a good.
a)
True
b)
False
3.
An exhaustible resource can be drawn upon indefinitely, as long as it is used wisely.
a)
True
b)
False
4.
What is an entrepreneur? A person who....
a)
develops a new product
b)
tries to earn a profit
c)
improves an existing product
d)
all of the above
5.
Which is NOT a productive resource?
a)
Human resources
b)
Capital resources
c)
Unnatural resources
d)
Natural resources
6.
Which of the following is an example of a capital good?
a)
rainwater
b)
coal
c)
a cow
d)
a screwdriver
7.
According to the circular-flow model, the flows of resources and products are supported by he flows of income and expenditure.
a)
True
b)
False
8.
Macroeconomics might focus on the shoe industry
a)
True
b)
False
9.
A rational decision maker will change the status quo when the following condition occurs:
a)
marginal cost exceeds the marginal benefit
b)
marginal benefit exceed marginal cost
c)
marginal benefit equals marginal cost
d)
None of the above
10.
Consumer goods and services are bought in which of the following markets?
a)
goods markets
b)
service markets
c)
product markets
d)
resource markets
11.
A statement that reflects someone's opinion is called....
a)
Positive
b)
Normative
c)
Negative
d)
Economical
12.
Even a person with unlimited wealth must deal with opportunity cost.
a)
True
b)
False
13.
It is not wise to spend your time and effort figuring out how to avoid sunk costs
a)
True
b)
False
14.
Economists assume that which of the following leads the average person to choose the most valued alternative among a number of possibilities?
a)
Rational Self-Interest
b)
Scarcity
c)
Opportunity Cost
d)
Sunk Cost
15.
What is the ultimate limiting factor in making choices?
a)
Money
b)
Knowledge
c)
Time
d)
Location
16.
Which of the following is true about opportunity costs?
a)
Its the value of all alternatives you pass up
b)
Its only measured in dollars
c)
Its the same for all individuals
d)
Its the value of the best alternative you give up
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