NEW
Font size
Worksheets7 Principles of Economics
Total questions: 18
Worksheet time: 12mins
Incentives are ______________
A set of external motivators that help people make choices.
Whatever you are giving up to do something.
The tension caused by infinite wants and finite resources.
The study of production, employment, prices, and policies on a nationwide scale
Which of the following is an INCENTIVE?
Wages for labor at a construction job sit
Passing a certification exam as a job requirement
Buying a candy bar during break
A college receiving monetary bonuses for a high graduation rate
Opportunity cost can be defined as:
The amount of money you paid for something
The HIGHEST valued alternative that you give up for a good (the next best thing)
The cost of giving up everything to obtain a good
The LOWEST valued alternative that you give up for a good (the bad decisions)
Economic decision to use one more additional unit of a resource
Thinking at the Margin
Incentives Matter
Trade Makes People Better Off
Future Consequences Count
I only have an hour of free time today. If I study, I can't see my friends.
Costs versus Benefits
Thinking at the margin
Incentives Matter
Future Consequences Count
Should I spend thousands of dollars on college? Would it be worth it?
Markets Coordinate Trade
Costs vs Benefits
Trade Makes People Better Off
Thinking at the Margin
Amateur investors banded together this week to squeeze Wall Street hedge funds by sending GameStop’s stock prices to dizzying heights.
Costs vs Benefits
Trade Makes People Better Off
Future Consequences Count
Markets Coordinate Trade
A lot of mothers cannot afford to stay home with their children because they have to work to help pay for costs of living, the choice they make to go to work forces them to give up time and nurturing of their children.
Thinking at the Margin
Costs vs Benefits
Scarcity Forces Tradeoffs
Future Consequences Count
Scarcity is a problem:
that only poor people face.
because human wants are limited while resources are unlimited.
because human wants are unlimited while resources are limited.
only in third world countries.
Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?
Shoes
Jacket
Dress
Purse
Tom was shopping for a car. He has looked at a Ford, Honda, Toyota, and Dodge. After a lot of debate, he narrowed it down to either the Ford or the Honda. He selected the Ford, because he liked the interior a little better. What was his opportunity cost?
Ford
Honda
Toyota
Dodge
The seatbelt law has helped protect drivers and passengers, but now there has been increase in pedestrian and cycle deaths. Why? Well maybe drivers feel more secure and therefore drive more aggressively.
Thinking at the Margin
Costs vs Benefits
Scarcity Forces Tradeoffs
Future Consequences Count
The satisfaction gained from using one more unit of a good or service is called
marginal benefit
marginal cost
opportunity cost
opportunity benefit
What is the major difference between scarcity and a shortage?
They are really the same
Shortages always exist and scarcity is temporary
Shortages are temporary and scarcity always exist.
Scarcity is limited and shortages are unlimited
"They paved paradise
And put up a parking lot
With a pink hotel, a boutique
And a swinging hot spot
Don't it always seem to go
That you don't know what you've got
Till it's gone
They paved paradise
And put up a parking lot"
What trade-offs can you find in the lyrics?
Paved paradise and put up a parking lot
Don't it always seem to go that you don't know what you've got till it's gone
With a pink hotel, a boutique and a swinging hot spot
