WorksheetsEconomics Fundamentals
Total questions: 17
Worksheet time: 9mins
How does scarcity impact personal financial decision making?
Consumers must make trade offs or decisions to buy what they need
The whole population must struggle to meet their needs
Some people benefit from resources while others do not
Consumers are affected by different geographical areas
Which of the following best explains the term marginal benefit?
the benefit associated with acquiring one additional item
the cost associated with acquiring one additional item
the ability to benefit by substituting one item for another
the demand for an item regardless of the cost
An investment in improving the skill level of labor is considered an investment in
human capital
entrepreneurship
improved technology
capital improvements
Antonio has noticed that the price of gas has gone up considerably. To save money when driving to work, he considers three options 1. buy a new vehicle with better gas mileage 2. Carpoool with a co-worker 3. Begin taking the bus to work What would be an advantage of choosing to buy a new vehicle
He would have the most control over his schedule
He would save the most amount of money upfront
It would be the most beneficial to the environment
It would allow the most breaks from driving himself
Which lists the four factors of production
land, labor, capital and entrepreneurial skills
labor, capital, productivity and renewable resources
labor, capital, economics and natural resources
land labor, credit and entrepreneurial skills
Which of the following is true in a command economy?
The government makes no economic decisions
business owners decide which goods to produce
consumers have many choices
The government decides which goods are produced
Which of the following is true of a mixed economy?
Businesses are free to make many choices, but they face some government regulation
Businesses are free to do whatever they want, and they face no government regulation
The government makes all economic decisions for businesses
There are often shortages of many goods
Which of the following has a mixed economy?
Russia
North Korea
United States
China
Which of the following countries has a command economy?
Canada
Cuba
France
United States
Which of the following is true of a market economy?
Supply and demand influences the economic decisions of businesses and individuals
The government controls the most profitable businesses
People are told by the government what type of work they must do
The government decides what the prices of goods will be
The lifting of restrictions on business, industry, and professional activities for which government rules had been established and that bureaucracies had been created to administer
regulation
deregulation
consumer sovereignty
profit motive
Which method of distribution is most commonly used in the market economy?
ability to pay
force
authority
first come first serve
Lotteries, markets, barter, rationing, and redistribution of income are all methods commonly used to
allocate scarce resources
collect taxes
redistribute income
protect private property
The Fabulous Fungus Factory specializes in farming a rare type of mushroom called a truffle. The truffle only grows underground in a remote region of the state, requiring a specific type of soil and climate. Every few months, workers use trained dogs to sniff out the truffles. They harvest the special crop, then return to the Fabulous Fungus Factory to clean and package truffles. Which productive resoruces help the fabulous fungus factory specialize in truffles?
factory building and machines
assembly line workers
soil and climate
investors in the business
Companies train or provide education for their employees so that they can perform their jobs, or they may pay for health insurance of their employees. This statement refers to
capital resource
human resources
human capital
physical capital
Which economic goal is the most important in the traditional economy?
growth
stability
equity
efficiency
The market economy meets which goals best
stability and equity
equity and freedom
freedom and efficiency
