WorksheetsEcon Honors - Extra Credit 1
Total questions: 25
Worksheet time: 1hrs 15mins
Name
Class
Date
1.
Which of the following is an economic system in which a central, governmental authority decides how to use a country's scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
2.
Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
3.
How do you satisfy your unlimited wants in a world of limited resources?
a)
by making more money
b)
by making choices
c)
by stealing
d)
by setting a budget
4.
What type of economy do most countries in the world have?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
5.
Which of the following is NOT one of the three basic questions of economics when looking at economic systems?
a)
What goods should be produced ?
b)
What is the price of the goods?
c)
How should the goods be produced?
d)
Who gets to consume the goods?
6.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
7.
People who take a risk by starting a business, who are search of profits, are called what?
a)
President
b)
Entrepreneur
c)
Senator
d)
Factory Worker
8.
Considered the Father of Capitalism, this person authored The Wealth of Nations.
a)
Karl Marx
b)
Adam Smith
c)
George Washington
d)
Milton Friedman
9.
This economic system provides the best opportunity for entrepreneurial success, and historically has the greatest success in improving standards of living, and increasing prosperity?
a)
Command Economy
b)
Traditional Economy
c)
Market Economy/Capitalism
d)
Mixed Economy
10.
The foundation of free market economics, buyers and sellers WILLINGLY engage in market transactions because BOTH benefit from the transaction.
a)
TINSTAAFL
b)
scarcity
c)
private property
d)
voluntary exchange
11.
Antonio has an Economic test tomorrow and knows that if he stays up and studies until 11 p.m. he has a good chance of making an A on the test. However he is really tired and knows that if he goes to bed at 10:00 p.m. he can easily make a B on the exam. What is Antonio's opportunity cost if he goes to bed at 11:00 p.m.
a)
An A on the exam
b)
making a B on the exam
c)
Losing one hour of sleep
d)
gaining one hour of sleep
12.
The study of economics is primarily concerned with:
a)
demonstrating that capitalistic economies are superior to socialistic economies.
b)
determining the most equitable distribution of society's output.
c)
keeping private businesses from losing money.
d)
choices/decisions that are made due to lack of resources
13.
Tony Romo, quarterback for the Dallas Cowboys NFL team, would be considered which one of the 4 economic resources/factors of production?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneurship
14.
What is the fundamental problem that economics deals with?
a)
labor costs
b)
scarcity
c)
economic interdependence
d)
market fluctuation
15.
________ is the most basic economic problem.
a)
Scarcity
b)
Labor
c)
Greed
d)
Capital
16.
Opportunity Cost is best defined as
a)
the value of the next best alternative that is given up due to the choice you made
b)
The price you pay to purchase something
c)
The benefit you gain by making a decision
d)
The amount of debt you take on by making a decision
17.
Soil, minerals, air, water, and coal are all examples of which factor of production?
a)
entrepreneurship
b)
capital
c)
labor
d)
land
18.
Any resources that are made by humans and used to create other goods and services are called
a)
Services
b)
Production
c)
Capital
d)
Labor
19.
Land, Labor, Capital, and Entrepreneurship
a)
Diversification
b)
Deductions
c)
Portfolio
d)
Factors of Production
20.
This economic concept teaches us that nothing is truly free; everything has a cost.
a)
scarcity
b)
opportunity cost
c)
TINSTAAFL - There is no such thing as a free lunch
d)
You break it, you buy it
21.
What is the production possibilities curve?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
22.
The opportunity cost of increasing production from 4 to 7 boats is
a)
1 boat
b)
2 boats
c)
2 trucks
d)
3 trucks
23.
If a natural disaster strikes, the production possibilities curve can shift
a)
No shift
b)
To the left (inward)
c)
To the right (outward)
d)
Outward on one axis only
24.
What does point "X" represent on the graph?
a)
Production at the country's maximum potential - Full Employment
b)
Inefficient or Recession
c)
Production is greater than the country's maximum potential - impossible
d)
Economic growth
25.
What do households provide to the resource market?
a)
land, labor, capital, and entrepreneurship
b)
money
c)
people
d)
income
100 %
