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choices in economics

Total questions: 31

Worksheet time: 3hrs 35mins

Name
Class
Date
1.

What is a want, rather than a need?

a)

food

b)

a video game

c)

clothing

2.

According to the law of supply, what occurs when the price of an item rises?

a)

people will buy more of it

b)

the supply will increase

c)

the demand will increase

3.
What is productivity?
a)
a voluntary exchange of goods
b)
work done for free
c)
the amount of a product that can be made in any given time span
d)
a case of specilaization
4.

In economics, the sacrifice that is made when you choose one good or service but NOT another is known as

a)

Opportunity cost

b)

import

c)

export

5.
In the 1500’s and 1600’s some European nations decided to pay for voyages of discovery to the Americas because they hoped for
a)
trade-offs
b)
profit
c)
a balanced bidget
d)
productivity
6.

According to the law of supply, what incentive does a rise in an item’s price offer to a producer?

a)

to produce less of the item

b)

to produce the same amount of the item

c)

to produce more of an item

7.

In economics, specialization has a relationship to which of the following?

a)

demand

b)

profit

c)

productivity

8.

In the Southern colonies, which of the following is the clearest example of specialization?

a)

cotton plantations

b)

shipbuiding

c)

newspaper publishing

9.

Which of the following is a good example of voluntary exchange?

a)

balanced budget

b)

barter system

c)

law of demand

10.

For a voluntary exchange to work, it is necessary

a)

that both trader feel they are willing and are better off because of the exchange.

b)

that both traders use the same type of money

c)

that the trader exchange goods that are worht different amounts

11.

Trade promotes economic activity because

a)

It makes unevenly distributed goods and services more available to buyers and sellers.

b)

it relies on a barter system

c)

it increases supply and reduces demand

12.

Which statement about specialization is true?

a)

it has no relationship to supply and demand

b)

it can increase productivity

c)

it always involves a vonluntary exhange

13.

Which of the following correctly defines “technology”?

a)

a complex equations in mathematics

b)

the use of science and inventions to imporove everyday life

c)

a simplest method of getting a particular job done

14.

_______ occurs when people want or need more of something than ther is

a)

economics

b)

goods

c)

scaricity

15.

____ are items that prople buy, such as a bood, car, or a computer

a)

need

b)

want

c)

goods

16.

____ is something necessary, like food, water, shelter and clothing.

a)

need

b)

want

c)

scaricity

17.

___ is the study of how people choose to use resources

a)

goods

b)

scarcity

c)

economics

18.

____ are work done for other people for a fee

a)

economics

b)

services

c)

want

19.

____ is the money that remains after all the costs of a production have been paid

a)

supply

b)

trade-off

c)

profit

20.

____ is the ability and willingness of sellers to make products and services available for sale

a)

supply

b)

profit

c)

opportunity cost

21.

_____ is a facotry system in which a workier makes only part of a product

a)

supply

b)

demand

c)

assembly line

22.

______ the choice of doing one thing rather than another

a)

opportunity cost

b)

trade-off

c)

supply

23.

____ is the amount of goods and services that buyers are willing to buy

a)

demand

b)

supply

c)

profit

24.

____ the sacrifice that is made when a person chooses between other goods or services

a)

profit

b)

opportunity cost

c)

demand

25.

____ is the choice by an individual, a business or a country to produce certain items as opposed to others.

a)

technology

b)

voluntary exchange incentive

c)

specialization

26.

____ is the amount of goods and services that a person or business can produce in any given time span.

a)

productivity

b)

barter system

c)

incentive

27.

____ is the use of science and inventions to improve everyday life

a)

barter system

b)

productivity

c)

technology

28.

____is when the price of an item rises, so does that supply.

a)

law of supply

b)

productivity

c)

barter system

29.
____ a trade in which traders feel that they are willing to make an exchange, and that they are better off because of it.
a)
technology
b)
voluntary exchange incentive
c)
incentive
30.

_____ is something that encourages a person to take a certain action.

a)

law of supply

b)

barter system

c)

incentive

31.

____ when items of equal value are exchanged back and forth.

a)

productivity

b)

specialization

c)

barter system