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Economics Fundamentals 1 Review

Total questions: 23

Worksheet time: 13mins

Name
Class
Date
1.

The fundamental problem of Economics: Unlimited wants, limited resources.

a)

Opportunity Cost

b)

Trade Offs

c)

Scarcity

d)

Marginal Benefit

2.

ALL alternatives given up when making a decision.

a)

Scarcity

b)

Opportunity Cost

c)

Trade Offs

d)

Rational Decision Making

3.

The SECOND best alternative given up when making a decision.

a)

Opportunity Cost

b)

Trade Offs

c)

Scarcity

d)

Rational Decision Making

4.

Marco must choose between buying a Play Station 4 and the Xbox X. He chose the Place Station 4. What is his opportunity cost?

a)

Play Station 4

b)

Xbox X

c)

The Play Station 4 and the Xbox X

d)

There is no opportunity cost

5.

The factors of production (land, labor, capital, and entrepreneurship) are also known as this:

a)

Trade Offs

b)

Environmental Resources

c)

Natural Resources

d)

Productive Resources

6.

What is an example of a NATURAL resource?

a)

Cows, Iron, trees

b)

Hammer, saw, a factory

c)

A business owner

d)

A construction worker

7.

What would be THREE reasons for an entrepreneur to start their business?

a)

Profit

b)

Paying taxes to the government

c)

To work for others

d)

Creating/innovating new products

e)

To create jobs

8.

Receiving the training necessary to perform a job is building what?

a)

Entrepreneurship

b)

Physical Capital

c)

Human Capital

d)

Labor

9.

Students study for their unit one exam because they wish to pass the exam. Getting a good grade is a(n) _______. Where people respond to rewards and punishments in predictable ways.

a)

Incentive

b)

Rational Decision Making

c)

Scarcity

d)

Opportunity Cost

10.

Papa John's hired a new worker. They noticed this worker can make ten extra pizzas for them per hour. The ten extra pizzas is known as:

a)

Specialization

b)

Marginal Cost

c)

Marginal Benefit

d)

Opportunity Cost

11.

The Honda plant divides their workers into specific jobs on their assembly line. The workers do this one task all day. This is an example of what economic principals?

a)

Opportunity Cost and Trade Offs

b)

Rational Decision Making

c)

Division of Labor and Specialization

d)

Positive and Negative Incentives

12.

The Coca Cola factory is considered what factor of production?

a)

Land

b)

Labor

c)

Physical Capital

d)

Human Capital

13.

A new breakthrough in computer technology allows food to be grown faster and more abundantly. This would cause PPC to shift to the________.

a)

Right

b)

Left

c)

No Shift

14.

The relationship of outputs to inputs is known as:

a)

Productivity

b)

Scarcity

c)

Opportunity Cost

d)

Specialization

15.

In order for a company to increase their efficiency, productivity, and overall profits, they should seek to:

a)

Never update their technology

b)

Let their employees train themselves

c)

Invest in new technology, but not train employees

d)

Invest in new technology and education for their workers

16.

Looking at the PPC graph, which letters are efficient? Click ALL that apply.

a)

A

b)

B

c)

C

d)

E

e)

F

17.

Looking at the PPC graph, which letter(s) are inefficient? Click ALL that apply.

a)

A

b)

B

c)

C

d)

E

e)

F

18.

Looking at the PPC graph, which letter(s) are not possible? Click ALL that apply.

a)

A

b)

B

c)

C

d)

E

e)

F

19.

What is the opportunity cost of moving from D to C?

a)

50 Clothes

b)

25 Food

20.

Going to RUSH and willingly paying $15 to jump in their trampoline park demonstrates what economic principal?

a)

Voluntary Exchange

b)

Rational Decision Making

c)

Incentives

d)

Opportunity Cost

21.

What is the opportunity cost of moving from 100 clothes to 150 clothes?

a)

50 Clothes

b)

25 Food

22.

Demarco going to his job at Cook Out is an example of which productive resource?

a)

Land

b)

Labor

c)

Entrepreneurship

d)

Human Capital

23.

Looking at the graph, determine if the following is true or false: The more education you receive, typically the higher your income and therefore your standard of living will be.

a)

True

b)

False