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WorksheetsEconomics Pre Assessment
Total questions: 22
Worksheet time: 21mins
All societies must answer three questions:
WHAT to produce, HOW to produce it, and FOR WHOM it is to be produced?
WHAT to produce, HOW to produce it, and WHEN to produce it?
WHAT to produce, HOW to produce it, and WHY to produce it?
WHAT to produce, HOW to produce it, and WHO produces it?
Economics is the study of:
business
finance
international trade
choice
Which of the following descriptions best explains the meaning of opportunity cost?
the initial cost of starting a new business
the cost of business failure
the cost of choosing one alternative over another
the risk associated with a new product failing
The four factors of production are:
land, capital, labor, and resources
land. labor, entrepreneurs, and consumers
tools, machinery, factories, and costs
land. labor, capital, and entrepreneurs
A point inside the production possibilities curve represents:
An efficient use of resources
Future output
An inefficient use of resources
An impossibility given current resources
Which of the following would result in a change in the production possibilities curve in a mythical country Alpha?
an influx of immigrants from other countries
the discovery of an abundant natural resource
a long draught
all of the above
In the product market of the circular flow model:
firms buy finished products from households
consumers buy factors of production from firms
firms sell factors of production to the government
consumers buy finished products from firms
The crucial problem of economics is:
establishing a fair tax system
providing social goods and services
developing a price mechanism that reflects the relative scarcities of products and resources
allocating scarce resources to satisfy unlimited wants
Which of these statements describes a disadvantage of traditional economy?
Everyone knows his or her role
New ways of doing things are encouraged
New ways of doing things are discouraged
Difficult economic decisions are made by the state
In which of these systems is the government most likely to provide people with goods & services they could not otherwise afford?
market economy
socialist economy
traditional economy
free enterprise economy
Consumers can influence the production and sales of goods by:
voting with their dollars
saving their money
reducing their spending habits
paying off their debt
The struggle among sellers to attract consumers by offering the best products at the lowest prices is known as:
voluntary exchange
competition
property rights
profit motive
Which is not a characteristic of the United States free enterprise system?
Competition among businesses
Consumer choice of goods and services
Private ownership of property
Government control of all businesses
When the price of something increases, the quantity demanded:
increases
remains unchanged
decreases
reverses
When a store reduces the price of computers, the store reports that the demand for software increases. What factor best describes the reason for the increase in the demand for software?
Computers and software are complements
Computers and software are competitors
Computers and software are substitutes
Computers and software are not related
The _____ _____ is the price at which the number of a particular product that is supplied equals the number of that product that is demanded.
fixed cost
variable cost
equilibrium price
price floor
According to the Law of Supply, which of these would happen to an item as its price rose?
Producers would make less of it
Producers would make more of it
Producers would increase the price even more
Producers would lower the price on similar items
What effects would an unexpectedly productive corn harvest most likely have on the price of corn?
increase
decrease
equilibrium
no effect
Changes in quantity demanded and changes in prices have a _____ relationship.
indirect
positive
inverse/opposite
neutral
Why is demand curve downward sloping?
because quantity demanded increases as prices decrease
because of the natural elasticity of the market
because it shows how increasing incentives changes demand
because it reflects the desire, ability and willingness of consumers
Which economic philosopher believed in an expanded government role during an economic downturn?
John Keynes
Adam Smith
Milton Freedman
Friedrich Hayek
Producers and sellers provide _____ to the government and receive ____ in return.
labor and capital; goods and services
payment; labor and capital
labor and capital; payment
goods and services; payment
