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Worksheets

liemae

Total questions: 22

Worksheet time: 17mins

Name
Class
Date
1.

If there are two goods with positive prices and the price of one good is reduced, while income and other prices remain constant, then the size of the budget set is reduced.

a)

True

b)

False

2.

Which point on the curve is an efficient use of resources?

a)

F

b)

D

c)

E

d)

A

3.

Which point on the curve is an efficient use of resources?

a)

F

b)

D

c)

E

d)

A

4.

According to the chart, what do household exchange in the Product market for finished products?

a)

Consumption Expenditures

b)

Cost

c)

Goods and services

d)

Productive Resources

5.

According to the chart above, what do businesses receive from the factor market?

a)

Goods and Services

b)

Finished Goods

c)

Income

d)

Factors of Production

6.

According to the chart, what do businesses do with the productive resources they purchase?

a)

make finished goods and services and sell them in the product market

b)

make finished goods and services and sell them in the factor market

c)

make productive resources and sell them in the product market

d)

use them to gain a tax credit with the government

7.

According to the chart, what do businesses do with the productive resources they purchase?

a)

make finished goods and services and sell them in the product market

b)

make finished goods and services and sell them in the factor market

c)

make productive resources and sell them in the product market

d)

use them to gain a tax credit with the government

8.

According to the chart, who makes income?

a)

Businesses

b)

Factor Markets

c)

Product Markets

d)

Households

9.

According to the chart, how do households and businesses interact in the factor market?

a)

Households sell finished goods and services to businesses for money

b)

Households sell productive resources to businesses in exchange for income

c)

Households sell productive resources to businesses in exchange for expenses

d)

Households purchase finished goods from businesses in exchange for cost

10.

According to the chart above, how do businesses and households interact in the product market?

a)

Businesses sell productive resources to house holds for income

b)

Businesses sell finished goods and services to the households for the factors of production

c)

Households purchase finished goods and services from the business for money that becomes is revenue for the businesses

d)

Households barter with businesses in exchange for a job to work.

11.

What is the opportunity cost of moving from point A to point B?

a)

50 of good X

b)

35 of Good Y

c)

50 of Good X and 35 of Good Y

d)

What ever is given up by point B

12.

Which point on the curve is an efficient use of resources?

a)

F

b)

D

c)

E

d)

A

13.

Which point on the curve shows impossible production possibilities?

a)

A

b)

D

c)

E

d)

F

14.

An outward shift in the curve shows what?

a)

Economic Growth

b)

Less Production

c)

Less employment

d)

Full Employment

15.

Which of the following cause an outward shift in the curve?

a)

Improved technology

b)

Increasing workers education

c)

Provide greater Job training

d)

spread disease among the workers

16.

With respect to the circular flow model, businesses provide households with which of the following?

a)

taxes and interest

b)

labor and taxes

c)

goods, services, and incomes

d)

public goods and transfer payments

17.

With respect to the circular flow model, businesses provide households with which of the following?

a)

taxes and interest

b)

labor and taxes

c)

goods, services, and incomes

d)

public goods and transfer payments

18.

A volcano erupts in Hawaii that destroys or damages many of the orchards that supply the U.S. with pineapples. What will be the effect on price and quantity of pineapples sold, assuming all else is equal?

a)

Price will rise and quantity will also rise.

b)

Price will drop and quantity will also drop.

c)

Price will drop but quantity will rise.

d)

Price will rise but quantity will drop.

19.

Jordan works for Georgia as a teacher. His labor provides the government with a much-needed service, and they pay him a salary. With his salary, he buys goods from private businesses, and pays taxes to the government. Jordan's economic interdependence with the government and businesses is referred to as

a)

the money flow.

b)

the monetary cycle.

c)

circular flow of economic activity.

d)

economic independence.

20.

In determining the GDP,

a)

A dollar is used as the common measure

b)

The quantity of items produced is added up

c)

The quality of goods is considered

d)

Both new and used goods are included.

21.
The alternative you give up when you make an economic choice is called a ___.
a)
Trade-off
b)
Opportunity cost
c)
Cost-benefit analysis
d)
marginal cost
22.
Opportunity Cost is best defined as
a)
The best rejected alternative you give up when making a decision 
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