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Applied Economics Q#1

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

Economics is best defined as the study of how people, business, governments, and society. Which is the best answer in the choices given?

a)

Attain wealth

b)

Choose abundance over scarcity

c)

Make choices to cope with scarcity

d)

Use their infinite resources

2.

Which is the most accurate definition of the study of economics? Economics is the study of ___________?

a)

Affluence in a morally bankrupt world

b)

How society uses its limited resources and deals with the production, distribution, and consumption of goods and services

c)

The distribution of surplus goods to those in need

d)

Ways to reduce wants to eliminate the problem of scarcity

3.

Scarcity requires that people must _____________.

a)

Complete

b)

Cooperate

c)

Efficiently allocate the scarce resources to meet the needs of the people

d)

Trade

4.

Which of the following actions is an example of an improvement in human capital?

a)

Carlos hires three workers for his business.

b)

Frank’s Furniture trains employees to use computers.

c)

Tasha applies for a job as an engineer.

d)

The city of Upland builds a new nursing home

5.

Economist points out that scarcity confronts _____________.

a)

Both the poor and the rich people

b)

Neither the poor nor the rich people

c)

The poor but not the rich people

d)

The rich but not the poor people

6.

Economics deals with graphs in interpreting results. This means that economics is ___________?

a)

Economics as an Art

b)

Economics as Applied Science

c)

Economics as Normative Science

d)

Economics as Social Science

7.

Labor, human capital, entrepreneurship, natural resources and capital are all examples of _________________.

a)

Factors of production

b)

Outputs

c)

Public goods

d)

Substitute in production

8.

The ultimate resource in economic development is __________. It is _____________, not capital or raw materials that develops an economy.

(a)  

9.

Which of the following constitute the fundamental questions every economic system must answer?

a)

I. What goods will be produced?

b)

II. How will they be produced?

c)

III. When will they produced?

d)

IV. For whom will they be produced?

e)

V. Where will they produced?

10.

When an economy produces more houses and fewer computers, it is answering the question of ____________?

a)

“For Whom”

b)

“How”

c)

“What”

d)

“Where”