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11th/12th Economics Ch. 1 Lesson 1B & 1C

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

Goods and services that bear a positive economic cost are known as:

a)

nuisance goods/services

b)

economic goods/services

c)

free goods/services

d)

positive goods/services

2.

What are some examples of nuisance goods?

a)

broken down cardboard

b)

garbage

c)

used motor oil

d)

eyeglasses

3.

Which type of value says that an item is more valuable based on its scarcity and the labor that went into its production? (Louis Vuitton clothing)

a)

subjective

b)

intrinsic

c)

objective

d)

economic

4.

Which type of value says that an item is more valuable based on its usefulness (a yacht on an island vs. a yacht in the desert)

a)

intrinsic

b)

subjective

c)

objective

d)

economic

5.

True of False:

Opportunity Benefit vs. Opportunity Cost is basically the concept of weighing the pros and cons of an economic situation

a)

true

b)

false

6.

Read the scenario. Then choose which concept it depicts:

Bob backed his car into a tree and it is undrivable. He was planning on buying concert tickets, but now has to use that money to get his car fixed. On the other hand, the car shop receives the business of repairing the car-which would not be possible without Bob backing his car into a tree.

a)

The Diamond-Water Paradox

b)

The Circle of Life

c)

The Broken Window Fallacy

d)

The Opportunity Benefits and Costs

7.

This is the study that deals with choices made by individual people, individual households, or individual businesses. (*hint: "individual" starts with the letter "i")

a)

macroeconomics

b)

microeconomics

8.

This is the study that deals with large-scale economic choices. (*hint: the "BIG_____" burger at McDonald's)

a)

macroeconomics

b)

microeconomics

9.

Which 3 are examples of MICROeconomics?

a)

Bob choosing to take a job in FL or CA

b)

a couple deciding if they're financially able to start a family

c)

national unemployment rate

d)

a local restaurant opens a 2nd location

10.

Which 3 are examples of MACROeconomics?

a)

looking at why some nation's economies grow faster than other's

b)

a woman debating whether to take a less paying job with a better environment vs a higher paying job and extreme stress

c)

researching the unemployment rate of the country

d)

how changes in government spending affect the economy

11.

Which type of economics is based around facts, cause/effect, and can be proven or disproven?

a)

Positive economics

b)

Normative economics

12.

Which type of economics is based around opinion and value judgements?

a)

Positive Economics

b)

Normative Economics

13.

When a free trial is offered, most people forget to cancel the subscription before the trial ends or they enjoy it so much that they choose to remain subscribed. This method results in high amounts of new subscriptions.

Is this Positive or Negative Economics?

(a)  

14.

All restaurants in the mall food court should offer a free sample in an effort to gain people's business.

Is this Positive or Normative Economics?

(a)  

15.

Carl Menger was a liberal who promoted which ideas: (choose 4)

a)

free trade and market

b)

equality of all individuals

c)

government control of economic affairs

d)

private ownership of property

e)

limited government