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Economics Unit 1

Total questions: 14

Worksheet time: 11mins

Name
Class
Date
1.

Economics is the study of how people seek to satisfy their needs and wants by making choices.

a)

True

b)

False

2.

Which is an example of a renewable resource?

a)

Timber

b)

Windpower

c)

Water

d)

All of the above

3.
__________ Things required to live such as food, shelter, clothing, air
a)
Need
b)
Want
c)
Tradeoff
4.

____________ is actually your next best alternative or if you think like your parents what they gave up bring you to school. Everything has a cost

a)
Opportunity Cost
b)

Scarcity

c)
Incentive
5.

Please complete the following sentence: ____ are people whose efforts and skills go into the production of goods and services.

a)

Labor

b)

Markets

c)

Economics

d)

Resources

6.

All of the following are factors of production except

a)

Land

b)

Money

c)

Labor

d)

Capital

7.
If video games are not a need, what are they?
a)
a wish
b)
a dream
c)
a want
d)
a necessity
8.
Which factor of production would you consider a lawn mower?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneur
9.
What kind of resource is this?
a)
natural and capital resource
b)

natural and labor resource

c)
capital resource
d)

human and capital resource

10.
An incentive is something that...
a)
you get from a junkyard
b)
you need when you open a bank account
c)
motivates you to do something
d)

when you are penalized on a test

11.

I thought it was a good idea to get a dog. I didn't know it would keep me up at nite barking at the neighbors dog.

a)

Benefit would outweigh the Cost

b)
Scarcity Forces Tradeoffs
c)
Incentives Matter
d)

Consequences Count in the Future

12.

I already ate 5 slices of pizza and i almost feel sick. Should I eat one more?

a)
Scarcity Forces Tradeoffs
b)
Incentives Matter
c)
Markets Coordinate Trade
d)
Thinking at the Margin
13.
Should I spend thousands of dollars on college? Would it be worth it?
a)
Markets Coordinate Trade
b)
Costs vs Benefits
c)
Trade Makes People Better Off 
d)
Thinking at the Margin
14.

I only have 20 dollars,I could spend it on a steak dinner, put gas in my car or go to a movie, I choose a steak dinner. What was my opportunity cost

a)

Gas in my car

b)

Go to a movie and gas in my car

c)

$20

d)

Time