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WorksheetsSV Contemporary Economics Review Chapter 1
Total questions: 25
Worksheet time: 14mins
Which of the following statements accurately describes an entrepreneur?
The entrepreneur wants production costs to exceed revenue.
All entrepreneurs must accept the risk of failure.
A person can only be considered an entrepreneur if he or she develops a new product.
The entrepreneur works mainly with nonprofit organizations.
An example of a positive economic statement is "The U.S. unemployment rate is 3.8%."
True
False
Which of the following statements best defines the circular-flow model?
The circular-flow model describes the relationships between resources, products, income, and revenue among economic decision makers.
The circular-flow model represents the behavior of the national economy.
The circular-flow model predicts supply and demand.
The circular-flow model includes all economic relationships.
The loss of income you could earn while you attend college is an opportunity cost of deciding to attend college.
True
False
Microeconomics focuses on the economic behavior and decision making of individuals.
True
False
Which of the following is a service rather than a good?
tomatoes
typing for a fee
scissors
sweater
Productive resources are __________.
available only in the United States
scarce
unlimited
the goods produced by companies
You decide to tutor your younger brother in Spanish instead of going to a movie with your friends. In order to arrive at this decision, which of the following did you need to consider?
opportunity cost
sunk cost
economic theory
scarcity
Which of the following statements best summarizes the economic problem?
Not enough young people can afford a college education today.
The unemployment rate in the United States continues to rise.
While your wants are unlimited, the resources needed to satisfy these wants are scarce.
You can never accurately determine opportunity costs.
Which of the following statements is a normative economic statement?
Contractor X charges twice as much as Contractor Y for the same job.
The price of gasoline should not be higher than $2.55 per gallon.
This week the grocery store on the corner is selling apples for $1.99 per pound.
The National Automobile Dealers Association reports that the average price of a new car sold in the United States in 2018 was $38,400.
