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WorksheetsUnit 1 Fundamentals of Economics Review
Total questions: 33
Worksheet time: 17mins
A basic concept in economics is that all resources are ___.
Scarce
Allocated
Valuable
Renewable
Economic Systems have ______ needs & wants, but ______ resources.
limited, unlimited
limited, limited
unlimited, limited
unlimited, unlimited.
How are individuals and economies similar?
Both must allocate resources
Both must categorize available resources
Both must recognize issues with resource.
Both must choose to use either renewable or nonrenewable resources
When making a rational decision you should consider ___.
units of opportunity cost.
the real dollar amount of the item.
scarcity
marginal benefits and marginal cost
Which of the following will be accomplished by efficient allocations of the factors of producation?
guaranteeing economic sucess
understanding whether a product will fail
fulfilling many needs and wants of a society
replenishment of limited resources
What are the three economic questions?
For whom to produce?
What to produce?
Where to produce?
When to produce?
How to produce?
Which of the following illustrates an opportunity cost?
James has enough money to by both socks and a book.
Alyssa does not have enough time to study for her test.
Jose only has time to study or play soccer.
Lydia does not have enough money to buy a new shirt.
Which economic system is described?
Strong property rights
Able to start new business
Few government regulations
Mixed Market
Market (Pure or Free)
Traditional
Command
The fundamental problem of Economics: Unlimited wants, limited resources.
Opportunity Cost
Trade Offs
Scarcity
Marginal Benefit
Marco must choose between buying a Play Station 4 and the Xbox X. He chose the Place Station 4. What is his opportunity cost?
Play Station 4
Xbox X
The Play Station 4 and the Xbox X
There is no opportunity cost
The factors of production (land, labor, capital, and entrepreneurship) are also known as this:
Trade Offs
Environmental Resources
Natural Resources
Productive Resources
What would be THREE reasons for an entrepreneur to start their business?
Profit
Paying taxes to the government
To work for others
Creating/innovating new products
To create jobs
Papa John's hired a new worker. They noticed this worker can make ten extra pizzas for them per hour. The ten extra pizzas is known as:
Specialization
Marginal Cost
Marginal Benefit
Opportunity Cost
The Honda plant divides their workers into specific jobs on their assembly line. The workers do this one task all day. This is an example of what economic principals?
Opportunity Cost and Trade Offs
Rational Decision Making
Division of Labor and Specialization
Positive and Negative Incentives
Looking at the PPC graph, which letters are efficient? Click ALL that apply.
A
B
C
E
F
Looking at the PPC graph, which letter(s) are inefficient? Click ALL that apply.
A
B
C
E
F
Looking at the PPC graph, which letter(s) are not possible? Click ALL that apply.
A
B
C
E
F
What is the opportunity cost of moving from D to C?
50 Clothes
25 Food
What is the opportunity cost of moving from 100 clothes to 150 clothes?
50 Clothes
25 Food
Demarco going to his job at Cook Out is an example of which productive resource?
Land
Labor
Entrepreneurship
Human Capital
Public property is land or goods
owned by an individual.
owned by the government.
used for private businesses.
In a mixed market economy, what is a typical way the government can reduce unemployment?
The government can pay for projects to create work.
The government can control factories to provide jobs.
The government can create new farm fields to hire workers.
The government can raise taxes to encourage employment.
What is an example of scarcity?
An abundance of resources
Limited resources
Renewable resources
A choice of resources
In college, people can major in a wide variety of fields including medicine, journalism, business, and design among others. This is an example of the concept of
scarcity
specialization
elastic demand
progressive taxation
A headline reads: "High Tech Firms Begin Producing New Generation of Computers." What basic economic question is being addressed in this headline?
how to produce
what to produce
when to produce
for whom to produce
The production possibilities curve is a visual representation of which concept?
manufacturing
technology integration
opportunity cost
cultural diffusion
In the US, if a company does not follow environmental regulations and over-pollutes, they will probably have to pay a fine. Why does the US government force certain industries to comply with environmental regulations?
To reduce the cost of goods for consumers.
To reduce barriers to entry in the industry.
To make sure companies bear the cost of their own pollution.
To make sure that no company can develop into a monopoly.
Which of the following best refers to the cost of producing each additional unit of a particular product?
Fixed Cost
Total Cost
Marginal Cost
Variable Cost
Which of the following best describes factors of production?
The resources necessary to produce goods and services
The number of steps it takes to make a product
The mathematical equations that determine GDP
The goods and services that a country produces
In economics, rational decisions occur when
suppliers lower their prices to increase demand
marginal benefits of an action equal or exceed the marginal costs
a budget is used for spending and saving decisions
command economies answer the three basic questions
Competition and free enterprise are most common in which type of economic system?
traditional
market
communist
planned
Copyrights, trademarks, and patents are all ways governments try to serve which role?
Distribute Income
Save market failures
Protect property rights
Provide goods and services
Which of the following tends to make economies more efficient?
Division of Labor
Marginal Cost
Marginal Benefit
Specialization
