WorksheetsEconomics Unit 1 Review
Total questions: 25
Worksheet time: 14mins
Name
Class
Date
1.
Economics is about making choices.
a)
True
b)
False
2.
An example of a positive economic statement is "The U.S. unemployment rate is 5.8%."
a)
True
b)
False
3.
Your opportunity cost depends on your alternatives.
a)
True
b)
False
4.
Which of the following is a service?
a)
a restaurant meal
b)
a guitar lesson
c)
dry-cleaning fluid
d)
a concert t-shirt
5.
Economics is the study of how
a)
gov't allocates scare resources to satisfy people's unlimited wants.
b)
gov't supplies money to businesses to produce goods & services.
c)
people use their scarce resources to satisfy their unlimited wants.
d)
businesses supply unlimited goods & services with limited resources.
6.
An example of a renewable resource is
a)
oil
b)
coal
c)
copper
d)
timber
7.
An example of an exhaustible resource is
a)
timber
b)
corn
c)
oil
d)
cotton
8.
The opportunity cost of a chosen item or activity is
a)
the money you must give up to buy it
b)
the value of all alternatives you must pass up
c)
The value of the best alternative you must pass up.
d)
the money you lost by not choosing the least expensive option.
9.
The United States is a pure market economy.
a)
True
b)
False
10.
The government makes all economic decisions
a)
Traditional
b)
Command
c)
Market
11.
Adam Smith's "Invisible Hand"
a)
Traditional
b)
Command
c)
Market
12.
Capitalism
a)
Traditional
b)
Command
c)
Market
13.
What is the most common type of economic system today?
a)
Traditional
b)
Command
c)
Market
d)
Mixed
14.
Which of the following statements best summarizes the economic problem?
a)
While your wants are unlimited, the resources needed to satisfy these wants are scarce.
b)
Not enough young people can afford a college education today.
c)
The unemployment rate in the United States continues to rise.
d)
You can never accurately determine opportunity costs.
15.
A pure command economy is sometimes referred to as _______.
a)
a mixed economy
b)
a pure market economy
c)
socialism
d)
communism
16.
A traditional economy is shaped largely by custom or religion.
a)
True
b)
False
17.
What could shift an economy's PPF?
a)
changes in resources available
b)
changes in capital goods
c)
changes in technology
d)
All of these
18.
What do points inside the PPF represent?
a)
inefficiency
b)
unattainable combinations of resources
c)
division of labor
d)
none of these
19.
What do points outside the PPF represent?
a)
inefficiency
b)
unattainable combinations of resources
c)
division of labor
d)
none of these
20.
The most important economic decision maker in market economies is
a)
corporate leaders
b)
labor unions
c)
the president
d)
households
21.
Monetary policy involves
a)
taxing & public spending
b)
promoting competition
c)
promoting inflation
d)
regulating the money supply
22.
What is the primary source of poverty in the United States?
a)
too many people
b)
large number of unemployed people
c)
too few college-educated people
d)
large number of births to single mothers
23.
Demand is elastic if it is greater than 1.0.
a)
True
b)
False
24.
Which of these encourages inventors to invest the time and money required to discover and develop new products and processes?
a)
copyright laws
b)
trademarks
c)
antitrust laws
d)
patent laws
25.
Which of these is a major U.S. export to other nations?
a)
oil
b)
metals such as zinc and copper
c)
wheat
d)
coffee
100 %
