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intro to Economics

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

The characteristic from which all economic

problems arise is

a)

political decisions.

b)

scarcity.

c)

how to make a profit.

d)

hunger.

2.

Jamie has enough money to buy either a

Mountain Dew, or a Pepsi, or a bag of chips.

He chooses to buy the Mountain Dew. The

opportunity cost of the Mountain Dew is

a)

the Pepsi and the bag of chips.

b)

the Pepsi or the bag of chips, whichever

the best alternative given up.

c)

the Mountain Dew.

d)

the Pepsi because it is a drink, as is the

Mountain Dew.

3.

If the marginal benefit of the next slice of

pizza exceeds the marginal cost, you will

a)

eat the slice of pizza.

b)

not eat the slice of pizza.

c)

be unable to choose between eating or not

eating.

d)

eat half the slice.

4.

When people make rational choices, they

a)

behave selfishly.

b)

do not consider their emotions.

c)

weigh the costs and benefits of their op-

tions and act to satisfy their wants.

d)

necessarily make a decision in the social

interest.

5.

A positive statement...

a)

cannot be negative.

b)

cannot be tested.

c)

can be tested against the facts.

d)

depends on someone’s value judgment.

6.

"Everyone should make saving the environment their number one priority", is an example of a ...

a)

opportunity cost

b)

trade offs

c)

Normative statments

d)

Positive statments

7.

All resources are scarce.

a)

True

b)

False

8.

Society has unlimited wants and limited resources.

a)

True

b)

False

9.

Due to scarcity, choices must be made.

a)

True

b)

False

10.

Every choice has a cost.

a)

True

b)

False