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WorksheetsECON Unit 1 Vocabulary
Total questions: 26
Worksheet time: 21mins
Scarcity is a problem:
that only poor people face.
because human wants are limited while resources are unlimited.
because human wants are unlimited while resources are limited.
only in third world countries.
Labour, land and capital are called:
goods and services.
entrepreneurship.
outputs.
factors of production.
The three basic categories of resources are land, labour and:
money.
time.
energy.
capital.
The central question in economics is how to:
deal with the problem of scarcity.
change government economic policy.
change people’s wants to match their needs.
manage money and become wealthy.
The most fundamental concepts underlying the discipline of economics are:
scarcity and making an efficient choice.
supply and demand.
money, stocks and bonds.
inflation and unemployment.
Which of the following is a microeconomics topic?
The unemployment rate.
The inflation rate.
The economy’s growth rate.
The price of apples.
Forecasts of a recession next year.
What is macroeconomics about?
It is about economic growth
It is about inflation
It is about unemployment
All above
Production possibilities frontier analysis allows us to identify:
minimum possible combinations of goods and services.
ways to eliminate scarcity.
total benefits of production.
inefficient production.
The production possibilities frontier shows that:
scarcity can be eliminated.
all output combinations are possible
an economy that is operating efficiently can have more of one good without giving up some of another good.
some of one good must be given up to get more of another good in an economy that is operating efficiently.
Which of the following moves from one point to another in Exhibit 2.7 would represent an increase in economic efficiency?
Z to W.
W to Y.
Z to X.
X to W.
Opportunity cost can be defined as:
The amount of money you paid for something
The HIGHEST valued alternative that you give up for a good (the next best thing)
The cost of giving up everything to obtain a good
The LOWEST valued alternative that you give up for a good (the bad decisions)
Economic decision to use one more additional unit of a resource
Thinking at the Margin
Incentives Matter
Trade Makes People Better Off
Future Consequences Count
I only have an hour of free time today. If I study, I can't see my friends.
Costs versus Benefits
Thinking at the margin
Incentives Matter
Future Consequences Count
Should I spend thousands of dollars on college? Would it be worth it?
Markets Coordinate Trade
Costs vs Benefits
Trade Makes People Better Off
Thinking at the Margin
Amateur investors banded together this week to squeeze Wall Street hedge funds by sending GameStop’s stock prices to dizzying heights.
Costs vs Benefits
Trade Makes People Better Off
Future Consequences Count
Markets Coordinate Trade
A lot of mothers cannot afford to stay home with their children because they have to work to help pay for costs of living, the choice they make to go to work forces them to give up time and nurturing of their children.
Thinking at the Margin
Costs vs Benefits
Scarcity Forces Tradeoffs
Future Consequences Count
Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?
Shoes
Jacket
Dress
Purse
Tom was shopping for a car. He has looked at a Ford, Honda, Toyota, and Dodge. After a lot of debate, he narrowed it down to either the Ford or the Honda. He selected the Ford, because he liked the interior a little better. What was his opportunity cost?
Ford
Honda
Toyota
Dodge
The seatbelt law has helped protect drivers and passengers, but now there has been increase in pedestrian and cycle deaths. Why? Well maybe drivers feel more secure and therefore drive more aggressively.
Thinking at the Margin
Costs vs Benefits
Scarcity Forces Tradeoffs
Future Consequences Count
The satisfaction gained from using one more unit of a good or service is called
marginal utility
marginal cost
opportunity cost
opportunity benefit
Brandon is hungry, so he orders a pizza. When he eats the first slice of pizza, he feels fuller and happier. By the time he eats the last slice, he feels sick and bloated. What economic law is being demonstrated?
Law of Diminishing Marginal Utility
Law of Cosines
Rule of Law
Law of Magna Carta
Which of the Factors of Production is being used to make the pencil?
(a)
Why do many economists believe private ownership leads to more productive businesses than public ownership?
People tend to take better care of goods they own
People have more government protections as a private business than within the public sector
Infrastructure can only be developed by private businesses
Private businesses have more human capital
Upton Sinclair's novel The Jungle revealed worker abuses and unsanitary practices and helped lead to the creation of the Food and Drug Administration. The government's creation of the FDA demonstrates the importance of _______ in a mixed-market economy
Regulations
Taxes
Laissez-Faire economics
Reaganomics
