WorksheetsEconomics - Chapter 1
Total questions: 17
Worksheet time: 3600secs
Which of the following would best complete a short definition of economics?
“Economics is the study of…”
How money is circulated through the economy
How nations trade goods and services in a global marketplace.
How unlimited resources are allocated between scarce wants
How scarce resources are allocated to satisfy unlimited wants
Scarcity means:
Too much of something you wanted
Not enough of something you wanted
The exact amount of something you wanted.
None of the above
Which one is an example of a good?
Nurse
Shoes
Teacher
Firefighter
Which is a want?
Healthy food
Clean air
Ice cream
Water
Which is a need?
An i-phone
A flat screen TV
a name brand purse
a shelter/living space
Who provides a service?
A
teacher
builder
baker
farmer
The definition of Scarcity is
An unlimited amount of resources to meet limited wants and needs
When people use time and energy to create events
A limited amount of resources to meet unlimited wants and needs
A city where individuals commit themselves to unlimited wants and needs
Which of the following best defines “Opportunity Cost”?
It is the cost of producing those goods most desired by an economy
It is the amount of one product that must be given up in order to produce another
It is the cost of the input mix that will lead to the greatest rate of growth for a company
It is the cost of labor used in the production process
The basic problem of all economies is essentially one of deciding how to make the best use of
Unlimited resources to satisfy unlimited wants
Limited resources to satisfy limited wants
Unlimited resources to satisfy limited wants
Limited resources to satisfy unlimited wants
Audrey makes $300 per day at her job, She decides to take an unpaid day off of work to go to a Concert. She pays $100 total for the ticket and taxi fare. What is the value of Audrey’s total ‘opportunity cost’ of attending the Concert?
$100
$300
$200
$400
Nancy has the choice to spend one hour studying for a Test, mowing the lawn for one hour at a wage of $10, or babysitting her niece for a wage of $15. If we know that Nancy has chosen to study for the Test, which of the following is true?
The benefit received from studying is greater than the opportunity cost of $15
Nancy is indifferent between studying and mowing the lawn
The opportunity cost of studying is $25 which is less than the benefit received from studying
Nancy’s behavior is irrational since baby sitting was clearly superior to all other options
Refer to the production possibilities diagram for the following question: Production of which of the points in the diagram is currently unattainable given the economy’s resources?
Point A
Point C
Point E
Point D
Refer to the production possibilities diagram for the following question: Production of which of the points in the diagram has idle resources given the economy’s resources?
Point A
Point C
Point E
Point D
Refer to the production possibilities diagram for the following question: Production of which of the points in the diagram is using it resources to a maximum capacity given the economy’s resources
Point C
Point E
Point D
none of the above
List the three main groups in the economy. (3 pts)
What is the difference between Opportunity Cost and Money Cost? (4 pts)
How the production possibility frontier illustrates the concepts of scarcity, choice and opportunity cost. (9 pts)
