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WorksheetsUnit 1 The Economy and You
Total questions: 45
Worksheet time: 23mins
What drives the economy?
goods and services
wants and needs
resources
consumers
Which is NOT true of public wants?
They are widely shared by many.
Government satisfies public wants.
They are often considered private.
Examples include highways and parks.
Which is a name for items people can use to make or obtain what they need or want?
resources
goods
swervices
products
Which is true of resources?
Resources are unlimited
Businesses and government lack resources.
Insurance and tourism are examples of resources.
Resources are limited.
What should you do before making a decision?
Determine the pros and cons of alternatives.
Satisfy your wants and needs.
Think of another decision you have made.
Make the best use of limited resources.
Which question would best help you evaluate a decision after you put it into effect?
What resources are available to me?
What are my needs and wants?
Would I make the same choice again?
What is the problem and what are my options?
Which is true of both personal and business decisions?
They should be made independently.
They should be made without regard for consequences.
They should consume the most resources available.
The should be consistent with values and goals.
What is a commercial activity that seeks profit by providing goods in exchange for money?
profit
market research
competition
a business
What is profit?
commercial activity
motivation and wealth
money remaining after cost have been paid
an opportunity to earn a better living
Which is not true of businesses?
They pay taxes and provide jobs.
The wealth they create benefits the entire community.
They are rewarded with profits by satisfying consumers
They can survive without profits.
What is competition?
a contest to win customers
the freedom to produce new products
voluntary exchange
inexpensive goods and services
Which is NOT something a competitive business needs to offer?
quality products
discontinued goods
outstanding service
good prices
What must a business do when developing new products or services?
evaluate demand
lend money
pay taxes
focus on customer service
What is one result of effective market research?
immediate access to global markets
immediate access to start up capital
information that helps a business identify opportunities
improved production management
What might a business do if its products don't meet consumers needs?
consider bankruptcy
start a new business
try new selling techniques
modify its products to satisfy consumers
What is scarcity?
unlimited wants and needs
a shortage of resources
a lack of goods and services
limited expenses
Which is NOT a factor of production?
natural resources
labor
capital
the marketplace
Which statement about natural resources is true?
Water is renewable because it can be reproduced.
Lumber is not renewable because it takes a long time to grow new trees.
Coal is renewable because there is so much of it still in the ground.
Agricultural products are renewable because new crops can be grown each season.
Which statement about natural resources is NOT true?
Natural resources can be processed to make goods.
The amount of natural resources available to a society has little effect on its economy.
Synthetic materials such as nylon can be made from natural resources.
Countries that have scarce natural resources must get them from somewhere else.
Which means the same as human resources?
capital resources
service providers
labor resources
unskilled workers
Which is an example of a capital resource?
a machine used to make molded plastic toys.
a customer service representative
money borrowed from a bank
the president of a company
Which is most likely to profit from society's changing wants and needs?
a business with existing capital resources
a producer of goods
an entrepreneur
a business with substantial labor resources
Which refers to how people satisfy their needs and wants by making choices?
entrepreneurship
economics
equillibrium
opportunity
What is opportunity cost?
the income people receive by taking risk
giving up the chance to use a resource for one thing instead of another
the methods and labor used to produce a good
the income people have to purchase goods and services
What is a characteristic of capitalism?
Resources are privately owned
Resources are shared equally
There is an even distribution of income
Prices are determined by government planners.
What are two basic types of economic systems?
supply and demand
competition and profit
private enterprise and free enterprise
market economy and command economy
Which is true about people working in a market economy who have labor skills that are in demand?
Their earnings are the same as other workers their age
their incomes tend to be lower than others whose skills are not in demand
Their incomes tend to be higher than others whose skills are not in demand
their earning are not related to demand
Which is the most important in determining the price of a product or service?
profit and competition
business owners' preferences
equilibrium pricing
supply and demand
Which is most likely to happen when the price for a good or service is high?
demand falls
profits rise
supply increases
competition decreases
Which is a characteristic of socialism?
individuals own all major resources
Major industries are government owned
There is little choice for consumers
There is no incentive to create better products
Which is the current emphasis in the US Economy?
agriculture
service
industry
information
When did the Industrial Revolution lead to the industry based economy?
1600
1700
1800
1900
Which is NOT an indicator of a country's economic health?
GDP
standard of living
environmental awareness
inflation
What should happen to unemployment if the economy is picking up?
it increases
it decreases
it reverts to previous levels
it remains the same
Which is NOT a cause of inflation?
increased defense spending for a war
increased supply of goods in excess of demand
increased taxation
increased production cost
What is the main source of income for governments?
taxes
education
budget surplus
social security
Which term applies when a government makes more money than it spends in a year?
budget deficit
national debt
budget surplus
revenue
Which is NOT a job that the Federal Reserve does?
passes laws about tax policies
controls the circulation of money
sets interest rates
controls the amount of money loaned
In the business cycle, what generally comes after a period of depression?
properity
recession
recovery
another depression
What is another term for a period of economic prosperity?
downturn
demand
decline
peak
Which is true of a recession?
businesses produce less
wages are higher
new businesses open
more people buy houses
What is another term for depression?
decline
Black Tuesday
bank holiday
deep recession
Which would NOT characterize a depression?
high unemployment
low wages
less goods and services produced
decreased capacity in manufacturing plants
Which would NOT help during a period of recovery?
war
renewed recession
business innovation
increased consumer purchasing
Which is NOT considered an indicator of a higher standard of living?
increasing availability of goods
decreasing availability of goods
increasing availability of services
increasing purchase of luxury goods
