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Worksheets

ECONOMY IS FUN!!!

Total questions: 25

Worksheet time: 16mins

Name
Class
Date
1.

Opportunity cost may be defined as the

a)

goods and services that are forgone in order to obtain something else.

b)

prices paid for final goods and services.

c)

cost of producing a particular product.

d)

difference between wholesale and retail prices.

2.

Which of the following events would allow the PPC to shift outward?

a)

The economy's capital stock grows.

b)

Technology improves.

c)

More women enter into labor force.

d)

All of the above.

3.

The fundamental problem of economies is:

a)

the law of increasing opportunity costs.

b)

the scarcity of resources relative to human wants.

c)

how to get government to operate efficiently.

d)

how to create employment for everyone.

4.

Private ownership of resources and the use of price mechanism to solve the basic economic problem are the characteristics of

a)

Capitalism

b)

The Command Economy

c)

Mixed Economy

d)

Socialism

5.

Mixed economy refers to an economy which has both

a)

firm and household decision making and government decision making

b)

businesses and households

c)

product and factor market

d)

market and non-market sectors

6.

Any point inside the PPC is a (an)

a)

efficient point.

b)

nonfeasible point.

c)

inefficient point.

d)

maximum output combination.

7.

Assuming steak and potatoes are complements, a decrease in the price of steak will

a)

decrease in the demand for steak.

b)

increase in the demand for steak.

c)

decrease in the demand for potatoes.

d)

increase in the demand for potatoes.

8.

Mr. Leffler goes to the ticket booth to buy tickets for a Steelers game. Mr. Tonkli is told that the game is sold out and no tickets are available. Which best explains why there are no football tickets available?

a)

The arena forgot to print enough tickets.

b)

The supply of tickets was greater than the demand.

c)

The arena charged too much money for each ticket.

d)

The demand for tickets was greater than the supply.

9.
Read the following situation to determine what the outcome would be:

A new type of television set uses 3-D images. many stores will have large quantities of the older style televisions. What will happen to the price of these older televisions? 
a)
The price will remain the same.
b)
The price will rise.
c)
The price will fall.
10.
If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy. 
a)
Traditional 
b)
Market 
c)
Command 
d)
Mixed
11.

The reason why we even have economies is that ...

a)

...people can generally produce what they need on their own.

b)

...we want to trade globally.

c)

...we have needs and desires that we can't fulfill on our own.

12.
The inability to satisfy all wants at the same time is called?
a)
Scarcity
b)
Prodcution
c)
Consumption
d)
Resources
13.
Tina must choose between going to the movies or buying a new game. She chooses the game. Going to the movies is Tina's--
a)
Choice
b)
Opportunity cost
c)
Consumer soveriegnty
d)
Competition
14.
The four types of resources used in production are--
a)
Human, natural, capital, entrepreneur
b)
Human, natural, consumer, entrepreneur
c)
Human, natural, capital, environment
d)
Human, native, capital, environment
15.

Scarcity is a situation:

a)

where people’s needs exceed their resources.

b)

where people’s wants exceed their resources.

c)

where the quantity of resources is sufficient to meet all wants

d)

where people’s needs exceed other people’s resources.

e)

where the quantity of resources is sufficient to meet all needs.

16.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
17.
Thousands of people leave a small town due to a factory closing down.  Sales at the local grocery store become slow. What causes this change?
a)
Prices or availability of substitutes
b)
Prices or availability of complementary goods
c)
Change in the weather or season
d)
Change in the number of buyers
18.
What does this graph show?
a)
Shortage
b)
Surplus
c)
Supply Table
d)
Equilibrium
19.
Which of the following would not shift the supply curve for iphones?
a)
an increase in the price of iphones
b)
a decrease in the number of sellers of iphone
c)
an increase in the price of plastic, an input into the production of iphones
d)
an improvement in the technology used to produce iphones
20.

Which of the following happens when the Qs is greater than the Qd?

a)

Equilibrium

b)

Surplus

c)

Shortage

d)

Consumer surplus

21.

What happens if there is surplus?

a)

Sellers offer their products by lowering the price

b)

Sellers offer their products by raising the price

c)

Buyers are easy to find

d)

Sellers stick to the price they are offering

22.

Subsidies given to vegetable farmers will result in

a)

a shift in the supply curve of vegetables.

b)

a shift in demand curve of vegetables.

c)

a movement along the supply curve of vegetables.

d)

a movement along the demand curve of vegetables.

23.

Which of the following measures will assist the government in trying to control price hike of chickens during Raya celebration?

a)

Price floor.

b)

Price ceiling.

c)

Increase in taxes.

d)

Decrease in subsidies.

24.

An increase in the price of product X, decrease the demand for product Y. This indicates that products X and Y are:

a)

butter and margerine.

b)

Nasi lemak and roti canai.

c)

VCD Player and compact disk.

d)

Apple and orange.

25.

If the price ceiling is set below the equilibrium price,

a)

Qd = Qs.

b)

Qd < Qs.

c)

Qd > Qs.

d)

D < S