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CP midway Unit 1 Review Econ

Total questions: 35

Worksheet time: 31mins

Name
Class
Date
1.

Candy, a new car, owing the most expensive pair of shoes are examples of

a)

Wants

b)

Needs

c)

Resources

d)

Factors of Production

2.

A lemon flavored snow cone is an example of. .

a)

Consumer Good

b)

Capital Good

c)

Finished Product

d)

Technological Resource

3.

The opportunity cost of moving from point B to point C is

a)

10 tons of steal

b)

10 tons of wheat

c)

30 tons of steal

d)

30 tons of wheat

4.

What is the difference between positive and normative economics?

a)

Positive is opinion while normative is fact

b)

Fact is normative while opinion is positive

c)

Everyone can have an opinion and that is a fact

d)

Normative is opinion while positive is a fact

5.

Which of the following is physical capital?


a)

a college degree

b)

a factory building

c)

learning to sew

d)

playing the violin

6.

Which would a company do to increase its human capital?




a)

build a company cafeteria

b)

hire more part-time workers

c)

pay for employees’ education

d)

lease cars for employees

7.

Why does every decision involve trade-offs?

a)

Incomes are not equal.

b)

Resources are limited.

c)

Decisions are all different.

8.

What term means not enough to satisfy unlimited wants?

a)

Goods

b)

Scarcity

c)

Services

d)

Opportunity Cost

e)

Trade-Offs

9.

What term means the second best alternative that must be given up to get something

a)

Goods

b)

Scarcity

c)

Services

d)

Opportunity Cost

e)

Trade-Offs

10.

A firm operating at 'X' produces 70 whips and 60 saddles. It changes production to 'Y' producing 20 whips and 90 saddles. The opportunity cost of this production change is

a)

20 whips

b)

30 saddles

c)

50 whips

d)

60 saddles

11.

The production possibility curve shows

a)

alternative combinations of two goods that an economy is capable of producing.

b)

the actual levels of production of two goods that the economy is achieving.

c)

alternative combinations of productive resources that can be used to produce two goods.

d)

the total value of two goods produced in one time period.

12.

If an economy is producing at a point inside its production possibility frontier/curve, then

a)

consumption is greater than production.

b)

productive resources are not used to their full potential.

c)

production of capital goods is inadequate.

d)

it cannot benefit by specialisation and trade.

13.
Land, Labor, Capital, and Entrepreneurship 
a)
Diversification
b)
Deductions
c)
Portfolio
d)
Factors of Production 
14.

What are land/natural resources?

a)

People who make and sell your products.

b)

Things found in nature used to make a product.

c)

Goods made and used to produce other goods and services.

d)

Nature is a beautiful place.

15.

What is an example of a need?

a)

TV

b)

video game

c)

bike

d)

food

16.
Tools
a)
Land
b)
Labor 
c)
Capital
d)
Entrepreneurship
17.
If a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what?
a)
They are being over efficient
b)
They are not efficient
c)
It is impossible
d)
None of the above
18.

What does point Y represent on the PPC?

a)

Efficiency

b)

infeasible / impossible

c)

Inefficency

d)

Nothing

19.
Microeconomics is the study of  the individual and the market.
a)
True
b)
False
20.
If a natural disaster strikes, the production possibilities curve can shift
a)
No shift
b)
To the left
c)
To the right
d)
Outward on one axis only
21.

If there is improved technique of Production in both the goods , how will the PPC be affected?

a)

Leftward shift of PPC

b)

Rightward shift of PPC

c)

Rotation of PPC

d)

None of the above

22.

The table shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility?

a)

28 pizzas and 5 pairs of shoes

b)

3 pairs of shoes and 23 pizzas

c)

2 pairs of shoes and 20 pizzas

d)

4 pairs of shoes and 15 pizzas

23.
An increase in the labor force would cause the PPF to 
a)
Shift inward
b)
Shift outward
c)
Do nothing
d)
Turn into a straight line
24.
The diagram shows the production possibilities curve for Country Y. Which of the following statements is true?
a)
If Country Y is producing at point C, it is using all its resources efficiently
b)
The opportunity cost of producing more machines is constant
c)
Country Y cannot produce at point E
d)
The most efficient point of production is point D
25.

Why must we always make choices?

a)

unlimited wants/unlimited resources

b)

limited wants/unlimited resources

c)

limited wants/limited resources

d)

unlimited wants/limited resources

26.

Economics is the study of

a)

money

b)

stocks

c)

choices

d)

graphs

27.

When I considered the positives and negatives of something I am thinking of the

a)

incentive

b)

cost/benefit

c)

tradeoff

d)

opportunity cost

28.

Which of the following is scarce?

a)

Time

b)

Kindness

c)

Common sense

d)

Everything is scarce

29.

This image represents which concept

a)

invisible hand

b)

marginal thinking

c)

scarcity

d)

future consequences

30.
Doctor: Goods or Service?
a)
Goods
b)
Service
31.

You buy a book from a bookstore. You buy a _____.

a)
Good
b)
Service
32.

Point B represents

a)

Product Market

b)

Factor Market

c)

Individuals

d)

Businesses

33.

A person stocks shelves at a grocery store and receives a wage. They have completed an exchange in which part of the circular flow model?

a)

Individuals

b)

Businesss

c)

Factor Market

d)

Product Market

34.

What are the four main parts of the circular flow diagram?

a)

Product Market, Stock Market, Factor Market, Fish Market

b)

Product Market, House Market, Factor Market, Good Market

c)

Factor Market, Product Market, Households, Firms

d)

Factor Market, households, Stock Market, super market

35.

Where do factors of production (land, labor, etc) come from in the circular flow model?

a)

Factor Market

b)

Product Market

c)

Firms

d)

Individuals