WorksheetsEcon Unit 1 review
Total questions: 41
Worksheet time: 18mins
The term that can be defined as the loss of the next best use of resources is:
Scarcity
Opportunity cost
Cost Efficient Production
Capital
Why do people have to make choices?
People have limited wants and needs
Opportunity cost must always be paid
People have unlimited wants and scarce resources
All governments ration who receives scarce resources
Economics, as a field of study, is BEST described as
How society deals with the problem of scarcity
How people deal with investment alternatives
How everyone spends their money
How government controls the money supply
Which of the following is a problem faced by ALL economic systems?
Federal debt
Poverty
Inflation
Scarcity
The term underutilization can be defined as
The act of buyers and sellers coming together willingly in the marketplace
The right to produce goods and services
The use of fewer resources than the economy is capable of using
What you give up or what you did not choose
The method used by a society to produce and distribute goods and services is its
Production system
Political system
Industrial system
Economic system
A good that is used to help increase future production can be defined as:
Natural good
Consumer good
Capital good
Artificial good
Another name for a free enterprise system is:
Market economy
Industrial economy
Command economy
Democratic economy
A washing machine used in the laundry business is classified as:
Chaotic Good
A consumer good
A capital good
Artificial Good
A “let the people do as they please, or hands off” approach to the economy by the government is called:
Surplus value
Laissez faire
Central planning
Totalitarianism
In the circular flow model, households make money payments in the _______ market and receive W.R.I.P. in the ________ market
Product; resource
Product; financial
Capital; product
Financial; product
An economic system with public ownership of major industries but private ownership of other goods and services is:
Traditional
Capitalist
Socialist
Authoritarian
The economic system closest to pure command model is:
Traditional
Capitalist
Socialist
Authoritarian
In the free enterprise system, lower prices, better quality, and more variety in production are a result of:
Competition
The price system
Government regulation
Government control of the factors of production
Every economic system must make choices. Which of the following do all economic systems face?
Balancing the government budget
Dispensing with the production of luxuries
Saving money and thus reducing the national debt
Making the best use of scarce resources
The country of North Korea is closest to a/an _______ economy.
Socialist
Market
Capitalist
Authoritarian (Communist)
Man made tools, equipment and factories used in the production of goods and services are called:
Government goods
Consumer goods
Public goods
Capital goods
Phil Smith decided to quit his job and start a small pet grooming business. What would Phill BEST be classified as?
Entrepreneur
Labor
Capital
Land
Which of the following is an example of labor?
Nursing school
Nurse
Hospital
Microscope
Each of the following is a factor of production EXCEPT:
Land
Capital
Household
Labor
Adam Smith can be associated with all of the following EXCEPT:
Wealth of Nations
Public Property
Laissez-faire
Father of Capitalism
Each of the following is a part of national income EXCEPT:
Rent
Wages
Taxes
Profits
Three basic economic questions are : _______, _______, and _____ to produce.
What, how, and when
Why, what, and how
What, where, and when
What, how, and for whom
The term underutilization can be defined as
The use of fewer resources than the economy is capable of using
The right to produce goods or services
The act of buyers and sellers coming together willingly in the marketplace
What you give up or what you did not choose
The economic goal that refers to everyone having the same opportunity to receive equal amounts of the output of society’s goods and services is:
Economic freedom
Economic stability
Economic efficiency
Economic equity
A good that is used to help increase future production can be defined as:
Consumer good
Artificial good
Natural good
Capital good
Karl Marx:
Wrote The Communist Manifesto
Wrote The Wealth of Nations
Believed in the free market
Thought the government should remain small
The basic difference between consumer goods and capital goods is that:
Consumer goods are produced by the private sector and capital goods are produced by the public sector
An economy that commits a relatively large proportion of its resources to capital goods must accept a lower growth
Consumer goods are used and done, while capital goods are used to help produce something more
None of these.
On the model to the left, point A represents a combination of Guns and Butter that:
Can never be attained even if a technical advance occurs
Is impossible for this country attain under current conditions
Can be attained only if all resources are used
Can be attained without using all the country’s resources efficiently
In the circular flow model, households are
Independent of the factor market
On the seller’s side of the product market
On the seller’s side of the resource market
On the buyer’s side of the resource market
In this economic system you can not own a business:
Traditional.
Capitalism.
Socialism.
Communism.
In this economic system you will have the same job as your mother.
Traditional
Communism
Capitalism
Socialism
Millions of people starved to death in the Soviet Union, China and North Korea when this economic system created food shortages:
Capitalism
Free Market
Communism.
Socialism
Land earns this type of income...
(a)
Labor earns this type of income...
(a)
The income that Capital earns is called (a)
Chickens are considered what kind of factor of production? (F.O.P.)
Labor
Entrepreneur
Land
Capital
Schools are considered what type of factor of production?
Labor
Land
Capital
Entrepreneur
On the graph to the left, every point on the solid blue line represents ______________.
Underutilization.
Inefficient use of resources.
Future production possibilities.
Efficient use of resources.
You sell your (a) in the resource market for (b) .
Which of the following is considered a factor of production?
Money
Land
Stocks
Imports
