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WorksheetsEconomics, Unit One -- Introductory Terms/Concepts
Total questions: 15
Worksheet time: 30mins
The maximum amount of time, money, or resources given up in order to obtain a good/service.
Value Judgment
Value
Opportunity Cost
Wants and Needs
The personal opinions, often acquired through lived experiences, that influence the economic choices (trade-offs) that individuals make
Values
Wants and Needs
Opportunity Cost
Value Judgments
An economic decision between two or more goods/services, influenced by value judgments
Opportunity Cost
Value
Trade-Off
Scarcity
The difference between a good and a service is that:
Goods are available in unlimited quantities and services are not
Goods are tangible (touchable) and services are not
Services are available in unlimited quantities and goods are not
Goods are more highly valued than services
Kenneth has an Economic test tomorrow and knows that if he stays up and studies until 11 p.m. he has a good chance of earning an A on the test. However he is really tired and knows that if he goes to bed at 10:00 p.m. he can easily earn a B on the exam. What is Kenneth's opportunity cost if he goes to bed at 11:00 p.m.
Earning an A on the exam
Earning a B on the exam
Losing one hour of sleep
Gaining one hour of sleep
Svetlana is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Svetlana decides to get a job. Which of the following is the opportunity cost of her decision?
Time
A High School Diploma
Getting a Job
Attending College
Which factor of production includes all naturally occurring materials before they are refined or altered in any way?
Land
Capital
Entrepreneurship
Labor
Which factor of production involves the ability to spot gaps in the market, create or invent products, and start businesses or companies that offer goods/services to consumers?
Land
Capital
Entrepreneurship
Labor
Which factor of production involves the human effort applied to resources?
Land
Capital
Entrepreneurship
Labor
Money itself is NOT capital. Money becomes capital when:
It earns interest in the bank
It is used to purchase personal goods/services
It is used to purchase physical or human capital and makes production more efficient
It depreciates in value
Physical Capital is:
Any object or machine that allows production to become more efficient
An individual whose knowledge or skill-set allows production to become more efficient
Human Capital is:
Any object or machine that allows production to become more efficient
An individual whose knowledge or skill-set allows production to become more efficient
