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Intro to Econ

Total questions: 38

Worksheet time: 27mins

Name
Class
Date
1.
What is economics?
a)
The study of money
b)
The study of how people choose to use limited resources
c)
The study of governments and citizens
d)
The study of the past
2.
Which of the following is NOT one of the three questions of economics?
a)
What to produce?
b)
How to produce?
c)
For whom to produce?
d)
When to produce?
3.
"Gold" is an example of which factor of production?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneurship
4.
A pickaxe is an example of which factor of production?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneurship
5.
A mine worker is an example of which factor of production?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneurship
6.
What is the value of the next-best alternative when you make a trade-off?
a)
Fruit snacks
b)
Opportunity Cost
c)
Scarcity
d)
Second-Best
7.
In which economic system to businesses alone answer the three economic questions?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
8.
In which economic system does the government alone answer the three economic questions?
a)
Market Economy
b)
Mixed Economy
c)
Command Economy
d)
Traditional Economy
9.
In which economic system do both businesses and the government answer the three economic questions?
a)
Command Economy
b)
Market Economy
c)
Mixed Economy
d)
Traditional Economy
10.
In the circular flow model, the product market describes _____.
a)
stores that sell goods and services to households
b)
the government paying for public goods
c)
households selling their labor to businesses
d)
households receive income from businesses
11.
The circular flow model of a market economy shows
a)
how profits are made
b)
what inputs are required for what outputs
c)
how many firms can support the needs of how many households
d)
the interactions between households and  firms in the free market
12.
In terms of resources, what do households provide for businesses?
a)
loans
b)
savings
c)
labor
d)
private goods
13.
In terms of products, what do businesses provide for households?
a)
private goods
b)
public goods
c)
sales
d)
income
14.
In terms of resources, what do businesses provide for households?
a)
income
b)
sales
c)
taxes
d)
private goods
15.
T/F: Markets tend to circulate resources, goods, & money through the four sectors of the economy continuously.
a)
True
b)
False
16.
In the circular flow model, consumption goods are bought and sold in the
a)
product market
b)
financial market
c)
resource market
d)
government market
17.

When individuals work for businesses, what resource are they providing?

a)

Capital

b)

Labor

c)

Loans

d)

Raw materials

18.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
19.
Which of the following is NOT a factor of production?
a)
land
b)
labor
c)
capital
d)
goods and services
20.

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

21.

What is opportunity cost?

a)

the value of the next best option that is not selected when a choice is made.

b)

there is not enough of it.

c)

things people make to earn money.

d)

actions people do to earn money.

22.

Andrea has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?

a)

a trip to the beach

b)

a trip to the mountains

23.

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

24.

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.

25.

If an economy is producing at a point inside its production possibility 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.

26.

Alex is studying for his math quiz, but his favorite TV show just started. If he studies for the quiz, he will miss out on watching the show. Alex decides not to watch the show and continue studying for the quiz. What is the opportunity cost of his decision?

a)

studying for a quiz

b)

watching TV

c)

eating dinner

d)

taking a nap

27.

Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?

a)

Shoes

b)

Jacket

c)

Dress

d)

Purse

28.

How much of something that is available is ______________.

a)

Ration

b)

Demand

c)

Money

d)

Supply

29.

There are 18 students that want to use blue poster board for their project, but there are only 6 pieces of blue poster board available. We could state that there is a _____________ for blue poster board.

a)

supply

b)

demand

c)

benefit

d)

need

30.

The total utility definition states:

a)

The usefulness, benefit or satisfaction a consumer gains from consuming a product.

b)

The satisfaction gained from consuming a quantity of an economic good, measured in utils.

c)

The added consumer satisfaction from consuming a quantity of a good.

d)

The consumer's satisfaction from consuming a quantity of a good.

31.

You made a good decision if:

a)

Marginal cost is greater then marginal benefit

b)

Marginal cost is less than marginal benefit

c)

Marginal benefit is greater then marginal cost

d)

Marginal benefit is less then marginal cost

32.

What best reflects the goal of a consumer?

a)

To acquire the largest possible quantity of goods.

b)

To acquire the largest possible variety of goods.

c)

To maximize utility.

d)

To save money.

33.
Benefits offered to encourage people to act in certain ways.
a)
Incentive 
b)
Utility 
c)
economize
d)
Trade-off
34.
Examining the cost and the expected benefits of a choice is an aid to decision making
a)
Trade-off
b)
Cost-benefit analysis 
c)
Marginal Cost 
d)
Marginal Benefit
35.
Why does every economic decision involve an opportunity cost?
a)
scarce resources and unlimited wants
b)
few decisions have marginal benefit
c)
prices are always too high
d)
trade-offs are impossible
36.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

37.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

The "gifts of nature" or natural resources not created by human effort.

d)

the tools, equipment, and factories used in production of goods and services

38.

A bulldozer is an example of...

a)

Land

b)

Labor

c)

Entrepreneurs

d)

Capital