WorksheetsIntroduction to Economics
Total questions: 20
Worksheet time: 8mins
Name
Class
Date
1.
The term "invisible hand" was Adam Smith's way of explaining the relationship between what two groups?
a)
The communist government and the people
b)
The producers and the consumers
c)
The government and the people
d)
The United States and other countries
2.
The total value of goods and services produced within the borders of a country during a specific time period, usually one year.
a)
GDP
b)
GNI
c)
GDP per capita
d)
HDI
3.
There are 4 _______________. They are land, labour, capital and entrepreneurship.
a)
Factors of Production
b)
Market Economy
c)
Profit
d)
Economics
4.
Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys, concert tickets, etc.
a)
Demand
b)
Needs
c)
Wants
d)
Presents
5.
The reason why you can't have everything you want is because of ___________________.
a)
Opportunity Cost
b)
Scarcity
c)
Incentive
d)
Choice
6.
Opportunity Cost is best defined as
a)
The value of the next best alternative that is given up due to the choice you made.
b)
The price you pay to purchase something.
c)
The benefit you gain by making a decision.
d)
The amount of debt you take on by making a decision.
7.
How do you satisfy your unlimited wants in a world of limited resources?
a)
by making more money
b)
by making choices
c)
by stealing
d)
by setting a budget
8.
Man-made resources used in the production process i.e. machines in a factory.
a)
Labor
b)
Capital
c)
Household
d)
Revenue
9.
The study of how people seek ways to meet their wants and needs by making choices is called?
a)
Economics
b)
Scarcity
c)
Capitalism
d)
Entrepreneurs
10.
What economic system is based upon consumers and producers independent decisions determining which products will be successful (sell)?
a)
Traditional Economy
b)
Control or Command Economy
c)
Free Market (Capitalist) Economy
d)
Socialist Economy
11.
What is consumer sovereignty?
a)
In a planned economy consumers can only purchase what they government created.
b)
Producers are free to create whatever they want.
c)
The freedom to buy what we want.
d)
Producers decide what gets consumed.
12.
What are physiological needs?
a)
Water, food, air
b)
Consistent employment
c)
Love, friendship, companionship
d)
Achievieng a life-long goal
13.
What structure fell in 1989 symbolizing the fall of Communism in Eastern Europe?
a)
St. Peter's Cathedral
b)
Brandenburg Gates
c)
Berlin Wall
d)
Jenga Tower
14.
Who wrote the "Communist Manifesto", which stated the government should have complete control of the economy?
a)
Joseph Stalin
b)
Vladimir Lenin
c)
Adolf Hitler
d)
Karl Marx
15.
In traditional economies what is the term for exchanging goods and services without using currency (money)?
a)
Trade off
b)
Bartering
c)
Stealing
d)
Tariff
16.
What two countries have the highest GDPs (Gross Domestic Product) in the world?
a)
USA & Germany
b)
Germany & China
c)
China & Japan
d)
USA & China
17.
In the same year in which our country was founded (1776) this person wrote, "The Wealth of Nations", which outlined capitalism.
a)
Adam Smith
b)
Karl Marx
c)
Thomas Jefferson
d)
Alexander Hamilton
18.
What factor of production does this picture represent?
a)
Land
b)
Capital
c)
Labor
d)
Entrenprenour
19.
If you were invited by friends to go to the movies but you instead to stayed in and watched Netflix what is the opportunity cost of your choice?
a)
Watching Netflix
b)
Going to the movies with your friends
c)
Taking a nap
d)
Ordering takeout
20.
Brazil and India have a large population and are both large in size. If their economies are to develop what factors of production do they need to increase?
a)
Labor and Land
b)
Entrepreneurship and Labor
c)
Capital and Land
d)
Capital and Entrepreneurship
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