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3-5 Elementary Economic Terms

Total questions: 14

Worksheet time: 9mins

Name
Class
Date
1.
Who is a person who takes a risk to start a business?
a)
Consumer
b)
Entrepreneur 
c)
Labor
d)
Capital
2.

People focused on producing a few things instead of making everything they want by themselves is called...

a)

Economic Resources

b)

Scarcity

c)

Specialization

3.

The TOOLS and MATERIALS needed to make goods and to provide services are called______________.

a)

natural resources

b)

capital goods

c)

human capital

d)

services

4.

_______________ goods or services are provided by governments in a market economy and are paid for through taxes.

a)

Private

b)

Market

c)

Public

5.

What is currency?

a)

money, usually made from some type of paper-like material

b)

newspapers, usually made with paper

c)

movement of air or water in a definite direction

d)

the value of the next-best alternative when a choice is made

6.
Trying to satisfy unlimited wants with limited resources defines _____ and is the fundamental problem of economics.
a)
scarcity
b)
needs
c)
wants
d)
microeconomics
7.

The combining of human, natural, capital, and entrepreneurship resources to make goods or provide services

a)

consumption

b)

production

c)

distribution

d)

resources

8.

Economics seeks the answer to the basic question of how to deal with ______.

a)

money

b)

hunger

c)

demand

d)

scarcity

9.

Payment of cash or cash equivalent in exchange for a good or service

a)

expenditure

b)

savings

c)

Economics

d)

income

10.

When a company reduces the price of a good or service to encourage consumers to buy

a)

surplus

b)

price reduction

c)

price incentive

d)

supply

11.

The process of willingly trading one thing for another

a)

voluntary exchange

b)

specialization

c)

price incentive

d)

Economics

12.

Nurse: Good or service?

a)

Good

b)

Service

13.

What is the value of the next-best alternative when a decision is made?

a)

specialization

b)

opportunity cost

c)

price incentive

d)

productivity

14.

Which of these involve risk-taking and combining natural, human, and capital resources in an attempt to make a profit?

a)

capital resource

b)

human resource

c)

entrepreneurship

d)

natural resource