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Unit 8 Review- Intro to Econ (The Basics)

Total questions: 70

Worksheet time: 49mins

Name
Class
Date
1.
What is economics?
a)

The study of the stock market

b)
The study of how people choose to use limited resources
c)
The study of governments and citizens
d)
The study of the past
2.
What is the value of the next-best alternative when you make a trade-off?
a)
Fruit snacks
b)
Opportunity Cost
c)
Scarcity
d)
Second-Best
3.

The problem of unlimited desires and limited resources is the problem of

a)

wants

b)

marginal benefit

c)

scarcity

d)

free enterprise

4.

The branch of economics that looks at the small scale, focusing on individual interactions.

a)

Micromachines

b)

Macaroni-onomics

c)

Macroeconomics

d)

Microeconomics

5.

The branch of economics that looks at the large scale economy as a whole.

a)

Macroeconomics

b)

Microeconomics

c)

Micromachines

d)

Macaroni-onomics

6.

Natural Resources includes...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

the tools, equipment, and factories used in production of goods and services

c)

people with all their efforts and abilities

d)

individuals who start a new business or bring a product to market.

7.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

8.

Labor refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

9.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

The "gifts of nature" or natural resources not created by human effort.

d)

the tools, equipment, and factories used in production of goods and services

10.

Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?

a)

fishing with a friend

b)

going to a concert

11.

The alternatives available whenever a choice is made

a)

Scarcity

b)

Economy

c)

Tradeoff

d)

Incentives

12.

Valuable actions that are performed by people for other people

a)

Economic Goods

b)

Economic Services

c)

Economic Opportunity

d)

Economic Capital

13.

Physical, tangible items created by people to be used

a)

Economic Costs

b)

Land Resources

c)

Economic Goods

d)

Economic Services

14.

Which two words would BEST describe Intro to Econ?

a)

Stocks and Money

b)

Big and Small

c)

Profits and Revenues

d)

Scarcity and Choice

15.

In economics, incentives are used to

a)

insure government control of the people

b)

influence the choices people make

c)

insure the poor are taken care of

d)

drive a wedge between the rich and the poor

16.

Explain the economic concept of "There is No Such Thing As a Free Lunch"

a)

Mr. Hogan isn't buying you lunch!

b)

You should really just wait for dinner

c)

Did you not eat breakfast?

d)

Everything has a cost

17.

_______ and _______ make something have value

a)

Goods and Services

b)

Scarcity and Utility

c)

Wealth and Tradeoffs

d)

Utility and Opportunity Costs

18.

If something has the ability to be useful and/or provides satisfaction, that good or services is said to have _____

a)

wealth

b)

surplus

c)

opportunity costs

d)

utility

19.
What is a need?
a)
Nothing
b)
Something you have to have to live
c)
Something you would like to have
d)
Ice cream
20.
What is a want?
a)
A person
b)
Something you would like to have but don't need to live
c)
Purple
d)
Something you need to live
21.
A person who makes goods or provides a service 
a)
goods 
b)
service producer 
c)
producer
d)
consumer 
22.

Identify the famous book written by economist Adam Smith

a)

An Enquiry into the Nature and Causes of Wealth of Nations

b)

Human Action

c)

The Affluent Society

d)

General Theory of Employment, Interest and Money

23.

The policy/philosophy supporting capitalism is?

a)

Classic Communism

b)

Laissez-faire

c)

Idealistic Socialism

d)

None of the above

24.
Smith believed that the economy operated according to three natural laws involving this concept...
a)
self-interest
b)
compassion
c)
citizenship
d)
trustworthiness 
25.
Which country has a pure command economy?
a)
United Kingdom
b)
Russia
c)
Germany
d)
None
26.
What is the term for someone who takes a risk and starts a business?
a)
business owner
b)
chief executive
c)
boss
d)
entrepreneur
27.
The three economic questions all entrepreneurs should consider before starting a business?
a)
What, when and where to produce
b)
For whom, what and why to produce
c)
What, how, for whom to produce
d)
Am I crazy for trying to do this?
28.
Most countries in the world have a ___ economy.
a)
traditional
b)
command
c)
mixed
d)
market
29.

A situation that occurs when two or more businesses try to sell the same type of product to the same customers is referred to as ...

a)

Competition

b)

Factors of production

c)

Consumer goods

d)

Free enterprise

30.

The items that consumers buy are called ...

a)

Private property

b)

Factors of production

c)

Producer goods

d)

Consumer goods

31.

Who ultimately makes the decisions in a market economy?

a)

The government

b)

Businesses

c)

Consumers

d)

Voters

32.
In a command economy, who holds power over the economy?
a)
The people
b)
The government 
c)
Beyonce
d)
The traditions of your ancesetors 
33.
The four types of economic systems are: 
a)
Traditional, Command, Mixed, & Market
b)
Traditional, Command, Combined, & Market
c)
Communism, Capitalism, Free Market, and Macroeconomics
d)
Microeconomics, Macroeconomics, Individual, and Traditional.
34.

The economic system of communist countries is most closely related to which of the following:

a)

Command

b)

Market

c)

Traditional

d)

Mixed

35.

Who owns the resources in a command economy?

a)

the government

b)

no one

c)

individuals

d)

private business

36.

How are goods and services exchanged in a traditional economy?

a)

through prices and wages

b)

through government regulation

c)

through bartering

d)

through shortages and surpluses

37.

This is an economic system where people follow the occupation of their ancestors:

a)

Command

b)

Market

c)

Mixed

d)

Traditional

38.

A market economy is very different from a command economic system or a traditional system. Which of the following is found in a market economy?

a)

Free labor

b)

Competition between businesses

c)

Government control of industry

d)

Government control of agriculture

39.

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

a)

Command

b)

Traditional

c)

Market

d)

Socialism

40.

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

41.

_____________ are a positive incentive for entrepreneurs to start a business despite the risks.

a)

Pride

b)

Fame

c)

Profits

d)

Being an employer

42.

This guy is called the father of economics and he literally wrote the book on capitalism

a)

Karl Marx

b)

Tom Brady

c)

Kanye West

d)

Adam Smith

43.

This guy literally wrote the book on communism

a)

Karl Marx

b)

Adam Smith

c)

Nick Covington

d)

John Calvin

44.

Which of the following correctly compares capitalism, socialism, and communism?

a)

Capitalism values society collectively, while socialism and communism value the market and the individual.

b)

Capitalism values the market and the individual, while socialism and communism value society collectively.

c)

Capitalism seeks to redistribute wealth, while socialism and communism seek to limit the role of government in economic affairs.

d)

Capitalism seeks to limit the role of government in economic affairs, while socialism and communism reject the idea of wealth redistribution.

45.
This type of business is owned by one person.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
46.
This type of business is owned by two or more people.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
47.
This type of business is owned by many people called stockholders.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
48.
This type of business is a contractual agreement with a parent company to sell its products/services in an area.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
49.
Nike, Google and Apple are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
50.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
51.
Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
52.
Advantages of this business include: easier to get money from the bank to start, share skills and share risks.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
53.
Disadvantages of this business type include: needs a partnership agreement, partners might not get along, owners share profits, unlimited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
54.
Advantages of this type of business include: selling stock to raise money, limited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
55.
Disadvantages of this type of business include: company is taxed on profits, regulated by the government, and hard to start.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
56.
Advantages of this type of business include: easy to start, and you can rely on a good company name and expertise.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
57.

Disadvantages of this type of business include: parent company is strict, you are limited in what you sell, and you must operate like every other franchise.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

58.

The length of a bond

a)

Coupon Rate

b)

Maturity

c)

Par Value

d)

Yield

59.

A stockholder's share of the company's profit

a)

Dividend

b)

Par Value

c)

Share

d)

Yield

60.

Which of the following industries is an example of a monopoly?

a)

utilities/water

b)

departments stores

c)

auto industry

d)

commercial airlines

61.

A bond is a loan to a company that is paid back with ____; stocks are shared ownership in a corporation that earns ___.

a)

dividends; interest

b)

interest; dividends

c)

dividends; capital gains

d)

capital gains; interest

62.
Which of the following is an advantage of sole proprietorships:
a)
Limited liability
b)
Unlimited financial power
c)
Dual taxation
d)
Quick decision making
63.

A government document granting permission to create a corporation is called

a)

dividend

b)

charter

c)

bond

d)

proxy

64.

What is a major reason for conglomerate mergers?

a)

diversification

b)

multinternationals

c)

unlimited life

d)

depreciation

65.

Schools, churches, and community organizations are examples of

a)

cooperatives

b)

conglomerates

c)

nonprofit organizations

d)

labor unions

66.

A partner that potentially has less liability in a business is known as what?

a)

General Partner

b)

Liable Partner

c)

Financial Partner

d)

Limited Partner

67.

When a business enterprise has different companies with various economic activities under it's watch. Examples: Pixar and Disney, Amazon and Whole Foods

a)

monopoly

b)

conglomerate

c)

competition

d)

partnership

68.

Identify the correct factor of production.

Machinery and factories are?

a)

Natural resources

b)

Labour

c)

Capital

d)

Entrepreneurship

69.

goods made to use in the production of other goods

a)

capital goods

b)

demand

c)

taxes

d)

consumer goods

70.

The definition of the law of diminishing marginal utility

a)

As more units are consumed the marginal utility falls.

b)

As more units are consumed the marginal utility increases.

c)

As price decreases quantity demanded increases.

d)

As price increases consumers are willing to pay more.