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Economic Choices

Total questions: 21

Worksheet time: 16mins

Name
Class
Date
1.

Which of the following is an exhaustible resource?

a)

crude oil in the ground

b)

corn growing in a field

c)

water in the ocean

d)

fish in a river

2.

Goods and services have value because they

a)

are expensive

b)

use economic resources

c)

satisfy people’s wants and needs

d)

are sold for money

3.

The reason scarcity exists is

a)

people do not make the right choices

b)

people want more goods and services than can be produced

c)

some people are rich, some people are poor

d)

people make choices based on wants and needs

4.

Which of the following is an example of an economic good?

a)

a nurse taking your temperature

b)

a receptionist scheduling your next doctor’s appointment

c)

a doctor taking a patient’s blood pressure

d)

a prescription for blood pressure medication

5.

What do economic theories do?

a)

make predictions about economic behavior in the real world

b)

determine how the economy will behave over the next year

c)

guarantee methods used to produce goods and services

d)

determine prices of goods and services

6.

What drives people to make economic decisions?

a)

concerns about scarcity

b)

concern for their community

c)

rational self-interest

d)

the economic problems of the nation

7.

Which of the following is a normative statement?

a)

Ralph works an average of 35 hours a week.

b)

Ralph works too many hours a week to do well in school

c)

Ralph is paid $ 8.30 an hour for his labor as a cashier.

d)

Ralph pays 10 percent of his wages in health insurance

8.

Jack can choose to play a round of golf at Arrowhead Golf Course with his friends on Saturday morning or hangout with his girlfriend. Jack chooses to play golf. He will pay $30 to tee off and $50 to rent a golf cart. What is Jack’s opportunity cost?

a)

$80.00

b)

a round of golf

c)

time spent with his girlfriend

d)

three hours of exercise

9.

The physical and mental effort put into producing goods and services is

a)

labor

b)

scarcity

c)

marginal cost

d)

opportunity cost

10.

Which of the following is necessary in developing economic theory?

a)

never assume that people make rational choices based on self-interest

b)

assume all factors are variables and change constantly

c)

simplify the problem

d)

all choices

11.

Studying which of the following is an example of macroeconomics?

a)

a student buying school supplies

b)

amount of oil used to heat the homes of all Americans

c)

a mom buying groceries at Acme

d)

amount of gasoline used by a Daniel Boone senior to drive to school

12.

Which of the following is an example of an economic service?

a)

a Michelin tire

b)

a car jack

c)

a tire air gauge

d)

a mechanic changing a flat tire

13.

John pays $100 for a ticket to the Phillies game at Citizens Bank Park. Thirty minutes after the game starts John walks out because the Phillies have allowed the Atlanta Braves to score six home runs in the first inning. John has lost $100 and the time spent at the game. Which of the following best describes John’s cost?

a)

opportunity cost

b)

sunk cost

c)

comparative cost

d)

marginal cost

14.

Which statement concerning rational self-interest is True?

a)

consumers buys products that are expected to maximize their satisfaction

b)

the lower your personal cost of helping others, the more help you will offer

c)

consumers make the best choice possible with available information

d)

all choices

15.

Jack buys and eats three slices of pizza at $1 each. Jack is still hungry so he decides to buy a fourth slice for another $1. This is an example of

a)

Sunk cost

b)

Marginal benefit/marginal cost

c)

Normative theory

d)

No Free Lunch

16.

The study of how people use scarce resources to satisfy their unlimited wants and needs is called

a)

civics

b)

scarcity

c)

economics

d)

marginal benefit

17.

Studying which of the following is an example of microeconomics (market)?

a)

Healthcare services increased by 3% for residents of Berks County in April, 2021

b)

Starbucks sold 1 billion more Cappuccinos in 2020 than 2019

c)

Fuel costs across the US dropped by 8% during the Covid 19 pandemic

d)

The Federal Reserve will raise the federal interest rate by .5% to stem rising inflation rates

18.

All goods and services involve a cost to someone. Scarce resources used for one good cannot now be used for another. This concept is

a)

No free lunch

b)

sunk cost

c)

opportunity cost

d)

rational self interest

19.

All human creations used to produce goods and services

a)

natural resources

b)

human resources

c)

entrepreneurs

d)

capital resources

20.

Most of the disagreements among economists involves debates over positive statements.

a)

True

b)

False

21.

The opportunity cost you would incur for cleaning your room would probably be different on Saturday evening than on Tuesday afternoon

a)

True

b)

False