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WorksheetsEconomics: Choices & Scarcity
Total questions: 15
Worksheet time: 5mins
Identify the terms used to describe the materials used to produce goods/services.
FOP, input, results
resources, labor, trade-offs
actors of production, goods, intermediate goods
factors of production, resources, input
Economics is the study of
Money
Factors of Production
Choices
Resources
The study of Economics demonstrates how people make choices
respond to natural disasters (hurricanes & earthquakes)
to gain knowledge from experience
from limited resources to satisfy unlimited needs & wants
to calculate their income taxes
I am the hammer used to build houses in a construction company. What type of capital am I?
physical capital
entrepreneurial capital
human capital
financial capital
Why are choices necessary?
because we have multiple options
because entrepreneurs want to make a profit
because some resources are scarce
because all resources are scarce
What is FOP?
Factors of production
Components used in the creation of goods & services (G/S)
Resources
All of these answers are correct
What is opportunity cost (OC)?
always a monetary cost
any missed opportunity
value of next best alternative after a choice is made
always the same for everyone
What are trade-offs?
alternatives sacrificed when you make a choice
unsuccessful trading of goods & services
countries with which the US has trade embargoes
goods and services traded to other countries
Which of the following do economists refer to as labor?
crops
tractors
teachers
factories
What is the fundamental economic problem?
inflation, because it erodes a person’s buying power
the universal, on-going condition of scarcity
the universal, on-going condition of shortage
a man-made condition all individuals and nations must face
Which of the following is considered land?
teachers, because they are a naturally occurring substance
buildings, because they are built on land
trucks, because they are used to produce goods/services
oil, because it is a naturally occurring substance
What is the difference between needs and wants?
wants are necessary for survival; needs are luxury items
everyone has the same wants
wants are luxury items; needs are necessary for survival
wants are limited and needs are unlimited for everyone
(a) is the factor of production that combines the other 3 FOP into goods and services.
Jim chooses to work an extra hour at $15/hour rather than study another hour for a test; his OC:
loosing his job because he is replaced with someone else
is not passing his test because he didn't study enough
loosing out on an additional $15
leaving his boss short on labor for the evening
What is the difference between goods and services?
goods are performed; services can be touched
goods can be touched; services are performed
goods are intangible assets; service are tangible
none of these answers are correct; there is no difference
