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WorksheetsEconomics
Total questions: 27
Worksheet time: 16mins
1) All economic questions arise from the fact that
A) inflation is inevitable.
B) both wants and resources are unlimited
C) unemployment is inevitable.
D) resources are scarce.
2) The opportunity cost of any action is
A) all the possible alternatives forgone.
B) the best alternative forgone.
C) the time required but not the monetary cost.
D) the monetary cost but not the time required.
3) In the production of goods and services, trade-offs exist because
A) not all production is efficient.
B) society has only a limited amount of productive resources.
C) buyers and sellers must often negotiate prices.
D) human wants and needs are limited at a particular point in time.
4) When an economy produces more houses and fewer typewriters, it is answering the ________. part of one of the two big economic questions
A) ʺwhatʺ
B) ʺhowʺ
C) ʺwhereʺ
D) ʺfor whomʺ
5) When China builds a dam using few machines and a great deal of labor, it is answering the ________ part of one of the two big economic questions.
A) ʺwhatʺ
B) ʺhowʺ
C) ʺwhereʺ
D) ʺfor whomʺ
6) The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions.
A) ʺwhatʺ
B) ʺhowʺ
C) ʺwhereʺ
D) ʺfor whomʺ
7) Which of the following is NOT a factor of production?
A) vans used by a bakery company for deliveries
B) a person developing a production schedule for a new product
C) 175 shares of Microsoft stock
D) wilderness areas that have yet to be developed
8) When an action is chosen, the value of the best alternative NOT chosen is the
A) implicit cost.
B) explicit cost.
C) accounting cost.
D) opportunity cost.
9) Macroeconomics differs from microeconomics in that macroeconomics
A) includes second round effects while microeconomics does not.
B) analyzes marginal as well as average benefits and costs.
C) studies the national economy while microeconomics analyzes the decisions of individual people and firms.
D) emphasizes relative prices instead of price indices.
10) A point inside a production possibility frontier
A) could indicate that some resources are unemployed.
B) is unattainable.
C) is better than points on the production possibility frontier.
D) implies that too much capital and not enough labor are being used.
11) The opportunity cost of increasing production from 7 to 9 trucks is
7 trucks
2 boats
2 trucks
3 boats
12) The opportunity cost of increasing production from 4 to 7 boats is
1 boat
2 boats
2 trucks
3 trucks
13) What is the production possibilities curve?
A) a graph that shows how much an economy can produce between 2 goods
B) how much money something is
C) the opportunity one has to give up in order to gain something else
D) land, labor, capital, entrepreneurs
14) The production possibilities curve is an illustration of what?
A) Opportunity costs and trade-offs
B) Only opportunity costs
C) Only trade-offs
D) none of the above
15) An incentive is:
A) the option to select or make a decision when faced with two or more possibilities
B) a conclusion or resolution reached after consideration
C) a circumstance that contributes to a result or outcome
D) a motivation that influences a person's decision
16) Suppose the economy is operating at point B. The opportunity cost of producing the third freight train would be:
19 tons of sugar.
45 tons of sugar.
80 tons of sugar.
180 tons of sugar.
10. Suppose the economy is operating at point C. The opportunity cost of producing the fourth freight train would be:
19 tons of sugar.
80 tons of sugar.
45 tons of sugar.
3 freight trains.
18) What does point B represent?
Production at greater than the country's minimum potential
Production is less than the country's minimum potential
Production is greater than the country's maximum potential
Production at the country's maximum potential
20) Which letter represents the O.C. of moving from A to G?
H
L
M
K
I
21) Which letter represents the O.C. of moving from A to G?
H
J
L
K
I
22) Which letter represents the O.C. of moving from E to C?
H
I
J
K
L
23) Which letter represents the O.C. of moving from F to A?
H
I
K
M
L
24) Which letter represents the O.C. of moving from G to A?
H
I
M
K
L
25) What is the O.C. of moving from E to C?
100 Ipads
200 Iphones
150 Ipads
100 Iphones
27) What is the O.C. of moving from B to D?
100 Ipads
200 Iphones
150 Ipads
100 Iphones
28) What is the O.C. of moving from F to B?
200 Ipads
400 Iphones
300 Ipads
200 Iphones
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