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WorksheetsEconomics - Intro to Economics
Total questions: 47
Worksheet time: 3610secs
Name
Class
Date
1.
What is Economics?
a)
The opposite of government
b)
The study of how to make money
c)
The study of human populations
d)
The study of how people make choices to satisfy their needs and wants
2.
Capital is ...
a)
the human resource that bears the risk of procution
b)
the effort or talent devoted to making goods
c)
the human made resource or something physical to aid production
d)
natural resources used to make other goods
3.
The factors of production are...
a)
land, labor and capital
b)
good, service, need
c)
entrepreneur, land, knowledge
d)
skills, knowledge, money
4.
An example of an entrepreneur would be ...
a)
George Washington
b)
Ralph Funk
c)
Barack Obama
d)
Marc Zuckerberg
5.
Land is ...
a)
tools
b)
an educated labor force
c)
oil
d)
innovation
6.
Labor is ...
a)
effort (physical & mental) devoted to a task
b)
natural resources
c)
man made resources
d)
an ambitious leader, a risk taker
7.
A tractor is an example of ...
a)
land
b)
labor
c)
entrepreneur
d)
capital
8.
Why should students study economics?
a)
To become productive members of society
b)
To learn how to make money
c)
To get a good job someday
d)
To be successful in college
9.
What are the four types of economies?
a)
command, demand, capitalist, communism
b)
traditional, command, market, mixed
c)
mixed, market, traditional, primary
d)
None of the above
10.
The reason why you cant have everything you want is because of
a)
Opportunity Cost
b)
Scarcity
c)
Incentive
d)
Choice
11.
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
12.
The people who bring all the factors together to create something are practicing
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneurship
13.
What happens when the same amount of input, used in the same amount of time, produces a greater amount of output?
a)
Labor costs increase
b)
Productivity goes up
c)
The GDP goes down
d)
Workers lose jobs
14.
___________________ is the economic system in which citizens instead of the government make most economic decisions.
a)
capitalism
b)
human capital
c)
profit motive
d)
voluntary exchange
15.
Which of the following economic systems gives PEOPLE all the power in the economy?
a)
market economy
b)
mixed economy
c)
traditional economy
d)
command economy
16.
A market system is best described as a system with:
a)
free trade
b)
competition
c)
profit motive
d)
all of the above
17.
A system that most likely would use bartering or trading.
a)
Mixed
b)
Market
c)
Traditional
d)
command
18.
The Country of North Korea has a dictator that makes all of the economic decisions. What type of economy is this?
a)
Traditional
b)
Market
c)
Command
d)
Centrally Planned
19.
Which quote best identifies with capitalism?
a)
"Sharing is caring"
b)
"Get rich or die trying"
c)
"Government first"
d)
"Never talk back to authority"
20.
What economic system involves everyone sharing the public good?
a)
socialism
b)
capitalism
c)
communism
21.
An important characteristic of a successful entrepreneur is that:
a)
they are always rich
b)
they are risk takers
c)
they are usually shy
d)
they want to avoid hard work
22.
Which of the following is an example of horizontal merger between two businesses?
a)
An oil company and an insurance company merge
b)
A shoe shop buys out a shoe factory
c)
A steel firm takes over a coal mine that supplies coal
d)
Coca-Cola takes over a small soft drink business
23.
A ________ must name a board of directors that will make the major policy and financial decisions for the business.
a)
limited liability company
b)
proprietorship
c)
corporation
d)
limited liability partnership
24.
In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?
a)
corporation
b)
partnership
c)
proprietorship
d)
S corporation
25.
The easiest form of business to start and end is a(n)
a)
limited liability partnership
b)
S corporation
c)
franchise
d)
proprietorship
26.
Disadvantages include unlimited liability, difficult to raise financial capital, difficulty attracting qualified employees, limited life
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
27.
Disadvantages include limited life and
the potential for conflict between partners
the potential for conflict between partners
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
28.
Disadvantages include double taxation and more government regulation
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
29.
The merger of the oil companies Exxon and Mobil is an example of a
a)
conglomerate merger
b)
horizontal merger
c)
diversifying merger
d)
vertical merger
30.
How does specialization encourage international trade?
a)
When countries specialize in one product, they can master it and sell it to other nations.
b)
When countries make many different products, they do not have to trade.
c)
Specialization uses resources from many countries.
d)
Specialization does not encourage international trade.
31.
Each point on a production possibilities curve shows
a)
efficient utilization of resources.
b)
underutilization of resources.
c)
the potential for future growth.
d)
the relationship of shortage to scarcity.
32.
The purpose of a production possibilities curve is to
a)
show alternative ways to use an economy's resources.
b)
show how a factory can use its workers in different ways.
c)
give engineers a new way of deciding how to build manufacturing plants.
d)
tell farmers how many watermelons to plant.
33.
All alternate choices to something people desire
a)
Trade Offs
b)
Opportunity Cost
c)
Value
d)
Utility
34.
Individuals can do whatever they like to their property as long as it does not harm others. Provides the incentive to work and own items
a)
Private Property Rights
b)
Consumer Sovereignty
c)
Profit Motive
d)
Voluntary exchange
35.
What does a point inside the curve of a PPC indicate?
a)
all resources are fully employed
b)
not all resources are fully emplyed
c)
more resources are required
d)
less resources are required
36.
A circular flow model shows how
a)
all interactions occur in a market economy
b)
some interactions occur in a market economy
c)
all interactions occur in a traditional economy
d)
some interactions occur in a traditional economy
37.
Public goods are funded by
a)
charitable donations collected by the government
b)
profits made by private businesses
c)
profits made by public companies
d)
taxes collected by the government
38.
All of the following are weaknesses of a command economy EXCEPT that it
a)
can change direction drastically in a short time.
b)
lacks the flexibility to deal with minor problems.
c)
requires a large decision-making bureaucracy.
d)
provides few incentives for people to work hard.
39.
The definition of Scarcity is...
a)
An unlimited amount of resources to meet limited wants and needs
b)
A limited amount of resources to meet unlimited wants and needs.
c)
When people use time and energy to create events
d)
a city where individuals commit themselves to unlimited wants and needs
40.
Division of labor is characteristic of ?
a)
home craft business
b)
assembly line production
c)
classroom education
d)
none of the above
41.
Promotes wise decision making when using resources
a)
stability
b)
freedom
freedom
freedom
c)
efficiency
d)
security
42.
Allows each member of society to make choices about how to use their resources
a)
Security
b)
efficiency
c)
Freedom
d)
Satbiility
43.
Promotes a just and fair system
a)
freedom
b)
equity
c)
security
d)
growth
44.
Help to protect people from unexpected events
a)
stability
b)
growth
c)
equity
d)
security
45.
Reduces extreme ups and downs in our economy and helps to keep prices from changing too quickly
a)
security
b)
growth
c)
full employment
d)
stability
46.
The concept that human wants and need for resources, goods, and services exceed what is available is called:
a)
Supply
b)
Demand
c)
Scarcity
d)
Elasticity
47.
An organization that owns four or more businesses that make unrelated products. No one division of the company is responsible for the majority of its sales.
a)
nonprofit organization
b)
entrepreneurial
c)
multinational
d)
conglomerate
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