WorksheetsFundamental Review
Total questions: 18
Worksheet time: 19mins
Name
Class
Date
1.
Which type of cost occurs when an individual pays for a piano lesson instead of going to a movie?
a)
fixed cost
b)
residual cost
c)
marginal cost
d)
opportunity cost
2.
The basic economic condition that exist when unlimited wants exceed limited productive resources is called
a)
capital
b)
scarcity
c)
hyperinflation
d)
opportunity cost
3.
Because scarcity exits, any strategy for allocating scarce resources must address
a)
for whom to produce, what to produce, and which resources to produce
b)
for whom to produce, how toproduce, and what to produce
c)
how to produce and which resources to produce
d)
when to produce which resources
4.
For economists, the word "utility" means
a)
versatility and flexibility
b)
rationality
c)
pleasure and satisfaction
d)
purposefulness
5.
Workers on an assembly line are an example of
a)
allocation
b)
entrepreneurship
c)
homogenization
d)
specialization
6.
You should decide to go to to a movie
a)
if the marginal cost of the movie exceeds its marginal benefit
b)
if the marginal benefit of the movie exceeds its marginal cost
c)
if your income will allow you to buy a ticket
d)
because movies are enjoyable
7.
Which example of productive resources is matched correctly?
a)
land and surgeon
b)
capital and oil rig
c)
labor and telephone wire
d)
entrepreneurship and rice field
8.
"Marginal benefit" is most related to what economic concept?
a)
opportunity cost
b)
supply elasticity
c)
demand elasticity
d)
equilibrium price
9.
How does voluntary trade promote economic growth?
a)
It makes individuals self-sufficient.
b)
It discourages trade on the basis of comparative advantages.
c)
It encourages businesses to seek lower per-unit costs by adopting mass production methods.
d)
It moves goods, services and resources from people who value them more to individuals who value them less.
10.
Martha can cook 5 cakes or 10 pizzas in an hour. Howard can cook 3 cakes or 12 pizzas in an hour. Which item should each person specialize in?
a)
Marsha should only cook pizzas and cakes.
b)
Marsha should cook pizzas and Howard should cook cakes.
c)
Howard should only cook pizzas and cakes.
d)
Marsha should cook cakes and Howard should cook pizzas.
11.
In a command economy, how are the prices of goods and services determined?
a)
business owners
b)
the central government
c)
market forces of supply and demand
d)
independent agencies and independent regulators.
12.
The purpose of the Production Possibilities Curve is to show
a)
how supply and demand determine price.
b)
whether the supply of goods is elastic or not.
c)
the number of workers required for a specific task.
d)
how limited resources can be used to produce a combination of items.
13.
Trade usually
a)
decreases specialization.
b)
decreases consumption.
c)
increases unemployment.
d)
increases output.
14.
By showing the various alternatives, the _____________ allows producers to decide how to allocate limited resources.
a)
decision making grid
b)
production possibilities curve.
c)
opportunity cost.
d)
marginal analysis.
15.
To achieve economic growth a society must
a)
discover new resources.
b)
use resources less efficiently.
c)
increase taxes.
d)
decrease its labor force.
16.
All points outside the production possibilities curve are considered
a)
Attainable with available resources.
b)
Possible with current resources.
c)
Unattainable with available resources.
d)
Probable with current resources.
17.
Scarcity forces people to choose, and when people choose.
a)
They bear an opportunity cost.
b)
They pay higher prices.
c)
Total economic output increases.
d)
The frontier shifts outward.
18.
China has the comparative advantage over the USA in the production of HDTV's.Essentially this meand
a)
China can produce HDTV's at a lower opportunity cost than the USA
b)
China can produce HDTV's at a higher opportunity cost than the USA
c)
The USA has an absolute disadvantage over China in producing HDTV's.
d)
China and the USA enjoy the same low opportunity cost in producing HDTV's
100 %
