WorksheetsEconomics Total Recall (Fundamentals)
Total questions: 15
Worksheet time: 11mins
Name
Class
Date
1.
In economics, rational decisions occur when
SSEF2b
SSEF2b
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
2.
Which is a human resource that Ms. Johnson could use for her art gallery?
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SSEF1b
a)
Light fixtures to help display the artwork.
b)
A security system to protect the artwork.
c)
Knowledge of trends in modern art.
d)
A series of paintings by a prominent local artist.
3.
Which is a fundamental questions every society must answer?
SSEF1a
SSEF1a
a)
What goods and services are to be produced?
b)
How are the goods and services to be produced?
c)
Who will get the goods and services that are produced?
d)
All of the above
4.
A and B both wash cars and change oil. Currently, each man washes and changes oil by himself, but the process takes lots of time. they would MOST LIKELY improve their efficiency if
SSEF2b
SSEF2b
a)
A & B wash a car and chang eoil together
b)
A washes car while B changes oil
c)
A washes B car while B washes A's car
d)
A and B reduce the number of cars they wash
5.
Susan offers to trade her old iPod for Claudia's cell phone and Claudia accepts. Assuming both products work perfectly, we can conclude that
SSEF3b
SSEF3b
a)
Claudia is now happier than Susan.
b)
neither party has gained because the exchange was fraudulent
c)
both people have gained because the exchange was voluntary and non-fraudulent
d)
Susan places the same value on cell phones as she does for iPods
6.
Investing heavily in new capital equipment and technology is MOST related to
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SSEF6b
a)
supply and demand
b)
opportunity costs
c)
economic growth
d)
economic freedom
7.
Competition and free enterprise are most common in which type of economic system?
SSEF4a
SSEF4a
a)
traditional
b)
market
c)
communist
d)
planned
8.
Economic growth is often tied to investment in machinery, new technology, and education of the population. This is because
SSEF6b
SSEF6b
a)
these items lead to a greater productivity of inputs
b)
the only way to measure economic growth is to observe change sin these factors
c)
investment in these items are sole determinant of output
d)
all of these items improve captal resources
9.
There are four types of economic systems. Most economies are _____.
SSEF4a
SSEF4a
a)
Traditional
b)
Command
c)
Market
d)
Mixed
10.
Which BEST describes productivity?
SSEF6a
SSEF6a
a)
the interaction of buyers and sellers
b)
the relationship of inputs and outputs
c)
producing at high opportunity costs
d)
trading based on absolute advantage
11.
In this type of economy, the government places control on businesses, but the individual decides what to make.
SSEF4b
SSEF4b
a)
Mixed
b)
Market
c)
Command
d)
Traditional
12.
Why do governments interact in economies to redistribute income, resolve market failures, and provide public goods and services?
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SSEF5a
a)
to provide equity and stability to the economy
b)
it is the easiest way to achieve economic growth
c)
central banks, like the Fed, do not have the ability to do these things
d)
to maximize the ups and downs of the business cycle
13.
Which provides the greatest incentive for entrepreneurs to take risks?
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SSEF1c
a)
prices
b)
inflation
c)
profits
d)
interest
14.
A production possibilities curve shows
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SSEF6d
a)
the technological changes that improve production
b)
choices a person makes between items
c)
all of society’s resources
d)
the combination of goods that can be produced with a set of resources
15.
If the producer in the PPC seen here is producing at point X, moving to point Z would mean an opportunity cost of
SSEF1d
SSEF1d
a)
3 pounds of cheese
b)
7 pounds of cheese
c)
10 gallons of milk
d)
20 gallons of milk
100 %
