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Grade 11 Trimester 1 Practice Questions

Total questions: 66

Worksheet time: 5hrs 11mins

Name
Class
Date
1.

Basic necessities of life are called

a)

wants

b)

resources

c)

capital

d)

needs

2.

The basic economic problem is

a)

scarcity

b)

wants

c)

Lunch

d)

book

3.

Things we desire to have are called

a)

Needs

b)

Wants

c)

Resources

d)

Phone

4.

Which one of the following is a type of resource

a)

Economics

b)

Scarcity

c)

Natural resource

d)

Wants

5.

Selection between two or more commodities are called

a)

Opportunity cost

b)

Choice

c)

Scarcity

d)

Alternative use of resources

6.

Oil is an example of

a)

Renewable resources

b)

Non renewable resources

c)

Human resources

d)

Capital

7.

Next best desired alternative forgone is called

a)

Choice

b)

Book

c)

Want

d)

Opportunity cost

8.

consumption is

a)

producing goods and services

b)

using natural resources

c)

use of goods and services to satisfy our wants

d)

wasting resources

9.

Physical and tangible things you buy are called

a)

services

b)

wants

c)

goods

d)

needs

10.

any place where buyers and sellers come together with potential of transaction is

a)

Market

b)

House

c)

Economy

d)

Speaker corner

11.

Demand is created by

a)

Suppliers

b)

Consumers

c)

Producers

d)

No one

12.

how much of a good or service market can offer at a given price at a given period of time is called

a)

Demand

b)

Supply

c)

Consumers

d)

Market

13.

Which of the following does Economics primarily study?

a)

how scarcity can be eliminated

b)

how firms manipulate prices

c)

how government influences resource allocation decisions

d)

the problem of scarce resources relative to human wants

14.

Because of the problem of scarcity, ______________.

a)

supply equals demand

b)

prices are above equilibrium

c)

socialism is superior to capitalism

d)

people must make choices about how to use their resources

e)

the government must impose high taxes on the citizenry

15.

"Opportunity cost" is best defined as _____________.

a)

the value of the the second-best alternative that is given up when one alternative is chosen

b)

the cost of investing in a business opportunity

c)

the cost of producing a particular good or service

d)

the money that must be paid to do something

16.
Which is a principle in economics?
a)
People need only food and water
b)
People have unlimited needs, limited wants
c)
People have unlimited wants
d)
People have unlimited resources
17.
Which is NOT an example of a good?
a)
steel
b)
power
c)
automobiles
d)
aircraft parts
18.
Activities that are consumed at the same time they are produced are known as
a)
finite
b)
infinite
c)
services
d)
human resources
19.
Which is an example of a capital resource?
a)
high-skilled professional staff
b)
mineral deposits
c)
building and land
d)
educational prerequisites
20.
In capitalism, who decides the price of goods for sale?
a)
the state
b)
company workers
c)
the market
d)
the C.E.O.
21.

Businesses provide people with the opportunity to become wealthy.

a)

True

b)

False

22.

A business must organize the people and equipment to provide the product.

a)

True

b)

False

23.

Profit is the money left over after a business has paid the cost of providing its goods and services.

a)

True

b)

False

24.

Companies thrive on competition or the contest between businesses to win the ________________.

a)

producers

b)

customers

c)

prize

25.
What do we call a person who is willing to take the risks of starting a business in order to make a profit?
a)
Proprieter
b)
Partner
c)
Entrepreneur
d)
Incorporater
26.

An activity to make or create new object for our needs

a)

distribution

b)

production

c)

consumption

d)

producer

27.

In a centrally planned economy, the three key economic questions are answered by the

a)

central government alone.

b)

central government with input from industry.

c)

marketplace alone.

d)

marketplace with some government involvement.

28.

A mixed economy is

a)

a market-based, economic system based on free enterprise with some government involvement.

b)

an economic system in which the government regulates all prices, production, and products.

c)

exactly the same as a centrally planned economy.

d)

the exact opposite of a free enterprise system.

29.

A centrally planned economy is

a)

always the most efficient economic system.

b)

an economic system in which the government makes all the decisions about production and consumption of goods and services.

c)

a form of free enterprise with minimal government involvement.

d)

an economic system that has no government involvement.

30.

The method used by a society to produce and distribute goods and services is

a)

a production curve.

b)

an economic system.

c)

an opportunity cost.

d)

the standard of living.

31.

The struggle among producers for consumer dollars is

a)

incentive.

b)

self-interest.

c)

competition.

d)

laissez faire.

32.

any arrangement that allows buyers and sellers to exchange things

a)

market

b)

circular flow model

c)

demand

d)

supply

33.

The amount of goods/services available

a)

supply

b)

demand

c)

quantity supplied

d)

quantity demanded

34.

The ____________________ states that consumers will buy more of a good when its price is lower and less when its price is higher.

a)

law of demand

b)

law of supply

c)

product market

d)

factor market

35.

The ____________________ states that producers offer more of a good as its price increases and less as its price falls.

a)

law of demand

b)

law of supply

c)

product market

d)

factor market

36.
What is a truck?
a)
Human Resource
b)
Capital Resource
c)
Natural Resource
37.
What is another name for economic resources?
a)
Factors of Production
b)
Figures of Prices
c)
Factors of Prices
d)
Natural Resources
38.

All the economic resources necessary to produce society's goods and services

a)

Natural Resources

b)

Factors of Production

c)

Scarcity

d)

Communism

39.

The things used to produce goods and services (i.e trucks, machinery, crates, etc.)

a)

Labor Resources

b)

Natural Resources

c)

Capital Resources

d)

Entrepreneurship

40.

Workers who produce goods or services

a)

Capital Resources

b)

Labor Resources

c)

Natural Resources

d)

Entrepreneurial Resources

41.

Raw materials which can be converted into goods

a)

Entrepreneurial Resources

b)

Natural Resources

c)

Labor Resources

d)

Capital Resources

42.

The founder and person responsible for undertaking a business venture

a)

Entrepreneurial Resources

b)

Labor Resources

c)

Capital Resources

d)

Natural Resources

43.

Humphrey fires 40 workers in order to buy more raw materials.

He sacrificed______for natural resources

a)

Natural Resources

b)

Labor Resources

c)

Scarcity

d)

Capital Resources

44.

Maximilian creates a new way to shine shoes and creates a business out of it.

Maximilian is a(n)_________.

a)

Natural Resource

b)

Factors of Production

c)

Scarcity

d)

Entrepreneurial Resource

45.

A cashier or a chef are examples of_______

a)

Natural Resources

b)

Labor Resources

c)

Capital Resources

d)

Entrepreneurial Resources

46.

In which economic system is the protection of private property rights essential?

a)

Command

b)

Traditional

c)

Market

d)

Socialism

47.

In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)

a)

Command

b)

Socialism

c)

Market

d)

Traditional

48.

Based on the passage, East Germany's government planned to transform its economy from: Click the magnifying glass for a better view.

a)

Traditional to mixed

b)

Command to traditional

c)

Market to mixed

d)

Command to mixed

49.

Which of the following best explains a mixed economy?

a)

Private ownership of the factors of production and regulation of businesses by government

b)

Market exchanges answer all three of the big economic questions

c)

Family customs and traditions determine what and how to produce a good

d)

Government answers all three of the big economic questions

50.

Which economic system is both market and command combined and most democratic countries fall into this category?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

51.

Which type of economic system is it when the market decides what needs to be produced, private businesses decide how to produce, and consumers decide what they are willing to pay for goods?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

52.
What are capital resources?
a)
things from nature used to produce goods
b)
the machines, tools, and buildings used to produce goods
c)
the people used to produce goods
53.
Which provides the greatest incentive for entrepreneurs to take risks?
a)
prices
b)
inflation
c)
profits
d)
interest
54.

Competition and profit motive are important characteristics of a:

a)

command economy

b)

traditional economy

c)

market economy

d)

socialist economy

55.

A _________ economy is a market-based system in which the government is involved to some extent.

a)

Traditional

b)

Planned/command

c)

Mixed

d)

Free Market

56.
Who or what answers the basic economic questions in a mixed economy?
a)
Individuals and Businesses
b)
Government
c)
Custom
d)
Individuals, Businesses, and Government
57.
Sarah would like to become a doctor when she grows up.  Unfortunately, she lives in a country where her job will be decided for her by the government.
a)
Traditional
b)
Free Market
c)
Mixed
d)
Command
58.
Gross domestic product is equal to the market value of all final goods and services:
a)
exchanged during a period.
b)
produced domestically during a period.
c)
produced by the citizens of a nation during a period.
d)
produced domestically during a period minus the depreciation of productive assets.
59.

Gross Domestic Product includes the market value of all FINAL goods and services produced within a country during a given period of time.

a)

True

b)

False

60.

The Business Cycle measures ___ over time.

a)

wealth

b)

inflation

c)

economic growth

61.

The business cycle is made up of how many phases?

a)

5

b)

4

c)

3

d)

2

62.

GDP will begin to decline at-

a)

the peak.

b)

the trough.

c)

the contractionary phase.

63.

When contraction (recession) begins in a business cycle- the economy will experience

a)

higher unemployment

b)

lower inflation (deflation)

c)

both a & b

64.

Recessions can end if

a)

workers choose to accept lower wages

b)

government policy is enforced to help the economy recover

c)

both a & b

65.

The U.S. has had negative real GDP growth for the 8th straight month.

What part of the Business Cycle?

a)

Expansion

b)

Recession

66.

Which of the following occurs when the economy is expanding?

a)

Inflation decreases

b)

real GDP decreases

c)

Unemployment increases

d)

Unemployment decreases