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Economics - Chapter 1

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Economics is the...

a)

study of echolocation

b)

study of the natural resources

c)

study of how microphones work

d)

study of how to use scarce recourses to satisfy unlimited needs

2.

The study of how individuals and societies make choices about ways to use scarce resources to fulfill their needs and wants.

a)

macroeconomics

b)

microeconomics

c)

economics

d)

technology

3.

What is a need?

a)

A car

b)

Something that is essential to survival

c)

Something you would like to have

d)

An ice cream

4.

What is a want?

a)

Food

b)

Something we would like to have but is not essential

c)

Water

d)

Something essential for survival

5.

Which of the following is NOT a service?

a)

Dry Cleaner

b)

Car Wash

c)

Clothes

d)

Babysitting

6.

Which ones are Free Good?

a)

Car

b)

Oil

c)

Rain water

d)

Air

7.

When their is a limited amount of resources available, it is called _______

a)

supply

b)

need

c)

opportunity cost

d)

scarcity

8.

Which of the following is NOT one of the three basic questions of economics?

a)

What goods should be produced ?

b)

What is the price of the goods?

c)

How should the goods be produced?

d)

Who gets to consume the goods?

9.

Which of the following is one of the four factors of production?

a)

productivity

b)

goods

c)

entrepreneurship

d)

services

10.

The tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services are _____________.

a)

land

b)

capital

c)

entrepreneurship

d)

labor

11.

Work or labor performed for someone; economic product that includes haircuts, home repairs, and forms of entertainment.

a)

Wealth

b)

Goods

c)

Scarcity

d)

Service

12.
The term, "land" means:
a)
The natural resources used to produce goods or services.
b)
Work the people do to produce goods and services.
c)
Goods not created for their own use, but to make other goods/services.
d)
Person who organizes the factors of production to produce goods/services; business owners.
13.

Land owner earns ___________.

a)

interest

b)

rent

c)

wages

d)

profit

14.
Which of the following best describes an entrepreneur?
a)
a person who works as an office clerk at a major corporation
b)
a person who combines the factors of production to produce innovative products
c)
a special type of capital 
d)
wealthy individuals who provide savings that stimulates the economy
15.

The growing and cutting down of the trees to produce a book is a __________ industry.

a)

Secondary

b)

Tertiary

c)

Land

d)

Primary

16.

All economic choices involve _________________.

a)

trade-offs

b)

destruction of resources

c)

shortages

d)

tax dollars

17.

Which of the following descriptions best explains the meaning of opportunity cost?

a)

the risk associated with producing a new item

b)

the cost of business failure

c)

the cost of choosing one alternative over another

d)

the dollar value of the item.

18.

Which of the following is a visual aid that helps a business determine how best to use its resources?

a)

opportunity cost

b)

trade-off

c)

production possibilities curve

d)

scarcity

19.

Graph showing the maximum combination of goods and services that can be produced from a fixed amount of resources in a given period of time.

a)

economics

b)

opportunity cost

c)

technology

d)

production possibilities curve

20.

Why would you want to produce a production possibilities curve?

a)

to show different ways a countries resources can be used

b)

show the benefits of using 1 type of technology over another

c)

to improve the way a product is manufactured

d)

to reduce the scarcity of resources and labor

21.

Which point is unattainable (impossible)?

a)

A

b)

B

c)

C

d)

D

22.

Which point is inefficient (not all resources are employed)?

a)

A

b)

B

c)

C

d)

D

23.

Which point is efficient (resources are being fully employed)?

a)

A

b)

C

c)

D

24.

A powerful storm hits the country and destroys factories and buildings. What happens to the PPC?

a)

the PPC shifts outward

b)

the PPC shifts inward

c)

the PPC does not change

25.

There has been advancement in technology in the country, which means the productivity have increased. What happens to the PPC?

a)

the PPC shifts outward

b)

the PPC shifts inward

c)

the PPC does not change