NEW
Font size
S
M
L
XL
WorksheetsFundamental Review
Total questions: 16
Worksheet time: 12mins
Name
Class
Date
1.
Which of the following tends to make economies more efficient?
a)
specialization
b)
government ownership of property
c)
income redistribution
d)
regulations aimed at economic equity
2.
In the production of chocolate chips, which represents the factor of capital?
a)
the dough used to bake the cookies
b)
the oven used to bake the cookies
c)
the worker who decorates the cookies
d)
the retailer who sells the cookies
3.
Which describes a method for allocating scarce resources?
a)
A group of stores get together to decide on the price of a good.
b)
The government of a country decides what to produce and for whom it will be produced.
c)
Businesses begin a new advertising campaign.
d)
The FED announces recent economic datat concerning the business cycle.
4.
Opportunity Cost is MOST RELATED to which concept?
a)
price floors
b)
scarcity
c)
elasticity
d)
absolute advantage
5.
Based on the PPF, which is true about countries A and B?
a)
Country A has fewer resources to make fish, but more resources to make coconuts.
b)
Country B has a fewer resources to make fish, but more resources to make coconuts.
c)
Country A has more total resources.
d)
Country B has more total resources.
6.
In economics, rational decisions occur when
a)
suppliers lower their prices to increase demand.
b)
marginal benefits of an action equal or exceed the marginal costs.
c)
a budget is used for spending and saving decisions.
d)
command economies answer the three basic questions.
7.
In college people can major in a wide variety of fields including medicine, journalism, business and design among others. This is an example of the concept of
a)
progressive taxation
b)
specialization
c)
elastic demand
d)
scarcity
8.
When two people engage in trade, both sides will benefit if the trade meets which two requirements?
a)
free and international
b)
rational and marginal
c)
non-voluntary and fraudulent
d)
voluntary and non-fraudulent
9.
Competition and free enterprise are most common in which type of economic system?
a)
traditional
b)
market
c)
communist
d)
planned
10.
Because command economies have a high degree of government interaction, they are better suited to meet which economic goals?
a)
freedom and equity
b)
efficiency and freedom
c)
growth and efficiency
d)
stability and equity
11.
A headline reads: "High Tech Firms Begin Producing New Generation of Computers." What basic economic question is being addressed in this headline?
a)
for whom to produce
b)
how to produce
c)
when to produce
d)
what to produce
12.
Which best describes productivity?
a)
the interaction of buyers and sellers
b)
the relationship of inputs to outputs
c)
producing at high opportunity costs
d)
trading based on absolute advantage
13.
Investing heavily in new capital equipment and technology is MOST related to
a)
supply and demand
b)
opportunity costs
c)
economic growth
d)
economic freedom
14.
International trade MOST OFTEN takes place because of differences in
a)
absolute advantage
b)
trade barriers
c)
comparative advantage
d)
exchange rates
15.
An assembly line can increase a factory's productivity because it allows workers to
a)
diversify their skills
b)
focus on a specific task
c)
put in overtime hours
d)
use a wide range of knowledge
16.
Economic growth is often tied to investment in machinery, new technology, and education of the population. This is because
a)
these items lead to greater productivity
b)
the only way to measure economic growth is to observe changes in these factors.
c)
investment in these items are the sole determinant of output.
d)
all of these items improve capital resources.
Reset
