WorksheetsEconomics: Chapter 1
Total questions: 25
Worksheet time: 13mins
Which of the following is one of the four factors of production?
productivity
goods
entrepreneurship
services
As an economic term, land includes __________________.
work people do
natural resources
machinery
knowledge
All economic choices involve _________________.
trade-offs
destruction of resources
shortages
tax dollars
What trade-off is involved when you buy a CD?
exchanging time for money
exchanging one service for another
exchanging money for goods
exchanging goods for services
Economic models are useful because they _________________.
show the way people react to changes in the economy
provide every detail about a problem to be studied
judge the value of economic events
make testing hypotheses unnecessary
Which of the following is a visual aid that helps a business determine how best to use its resources?
opportunity cost
trade-off
production possibilities curve
scarcity
Why can't economic models judge whether policies are good or bad?
models are not good enough
models are not based on fact
judgements depend on values
Economists do not test their hypotheses
These people take risks in order to reap profits.
Analysts
Stock brokers
Entrepreneurs
Economists
To an economist, a want is _________________________.
something you do not have
something other than a basic survival need
something you must have to survive
something most people have
Which of the following describes what economists do?
predict which policies will be good or bad
consider every detail of a problem
offer solutions to economic problems
rely on public opinion
Different schools of economic thought exist because _____________.
economics deals with values
personal beliefs influence how economists apply facts to theories
political leaders determine economic theories
economists evaluate different kinds of data
In a trade-off, opportunity cost is the value of the ________________.
factors of production
action that was chosen
scarce resources
next best alternative
The need to make choices arises because ________________.
some things are not limited
everything that exists is limited
shortages are a constant situation
people need to share their resources
The basic problem of economics is ________________.
scarcity
lack of choice
shortages
overabundance
The branch of economic theory that deals with the economy as a whole and decision making by large units such as governments.
microeconomics
macroeconomics
opportunity costs
trade-off
Tangible objects that can satisfy people's wants.
land
labor
capital
goods
Advance in knowledge leading to new and improved goods and services and better ways of producing them.
land
labor
capital
technology
The study of how individuals and societies make choices about ways to use scarce resources to fulfill their needs and wants.
macroeconomics
microeconomics
economics
technology
A scarce resource.
opportunity cost
time
trade-off
goods
Human effort directed toward producing goods and services.
land
labor
goods
capital
Sacrificing one good or service to purchase or produce another.
trade-off
microeconomics
macroeconomics
capital
Graph showing the maximum combination of goods and services that can be produced from a fixed amount of resources in a given period of time.
economics
trade-off
technology
production possibilities curve
Value of the next best alternative given up for the alternative that was chosen.
trade-off
opportunity cost
time
labor
Previously manufactured goods used to make other goods and services.
land
labor
capital
technology
Many American economists have stressed a ________________ approach at keeping unemployment and inflation low.
hands on
hands off
aggressive
intense
