WorksheetsChapter 3 The Fundamentals of Economics
Total questions: 30
Worksheet time: 15mins
True or False? Needs are things that are necessary to survive. Wants are things that are nice to have or luxuries.
True
False
What are goods?
things that people do for other people
things that are necessary for survival
things that are nice to have
things that you can touch
What are services?
work that is a luxury
work that people do for others
work that people do for themselves
goods that people give themselves
True or False? A consumer is a person who makes a good, while a producer is a person that buys a good or service.
True
False
Farm land, trees, cotton, solar power. These are examples of what?
natural resources
capital goods
human resources
entrepreneurship
Paper, pencils, computer, hammer, and nails. These are examples of what?
natural resources
capital goods
human resources
entrepreneurship
True or False? Renewable resources will never be replaced, while nonrenewable resources will be replaced over time.
True
False
Which of the following BEST describes human capital?
gifts of the earth
value of a person's skills and education
person who starts his or her own business
a good that is used to produce another good
True or False? Entrepreneurship refers to a person who starts his or her own business and takes on the risks of starting that business.
True
False
Why is it important for countries to invest in the factors of production?
It keeps their economies small and manageable.
It makes it easier for countries to trade.
It allows countries to purchase goods from other countries at lower prices.
It allows countries to grow their economies.
True or False? A scarcity is when demand is low, but the supply is high.
True
False
Opportunity cost is
the process through which a country decides how to best use its resources.
when a person makes a decision, it is the value of the next best alternative.
True or False? Supply is the amount of a good for sale.
True
False
Which statement BEST explains why producers sometimes make a small amount of a good?
A smaller amount of their good will increase the price.
A smaller amount of their good will decrease the price.
A smaller amount of their good will make it easier for them to make it.
A smaller amount of their good will cause other companies to make the good too.
In a traditional economy, how are the three economic questions answered?
traditions, beliefs, customs
government planners
supply and demand
trade and specialization
In a market economy, how are the three economic questions answered?
traditions, beliefs, customs
government planners
supply and demand
trade and specialization
The government makes all the economic decisions.
traditional
market
command
mixed
The GDP is the gross domestic product. It is
the value of all goods and services produced in one country in one year.
the value of all goods and services a country exports each year.
Inflation is
continual increase in the demand for goods and services.
continual increase in the price of goods and services.
continual decrease in the demand for goods and services.
continual decrease in the price of goods and services.
A tariff is
a tax put on imported goods.
a tax put on exported goods.
A quota is
a limit on the amount of goods imported or produced.
a ban on goods from another country.
a tax put on imported goods.
rules that are set concerning imports and goods.
An embargo is
a ban on goods from another country.
a limit on the amount of goods imported or produced in a country.
A standard is
money given to certain businesses to keep them competitive.
rules that are set concerning imports and goods.
Subsidies are
money given to certain businesses to keep them competitive.
a limit on the amount of goods imported.
Why do countries need exchange rates?
They can determine what to export to other countries.
They can determine what to import to other countries.
They are able to trade with other countries.
They are able to sell their exports at lower prices.
True or False? The United States has a mixed economy.
True
False
Goods that countries buy from other countries.
exports
imports
Goods that countries sell to others countries.
imports
exports
Which one is NOT a basic economic question for all countries?
Where to produce?
What to produce?
How to produce?
For whom to produce?
True or False? The standard of living is determined by the GDP per capita (per person) in a country.
True
False
