WorksheetsFundamentals of Economics 2025
Total questions: 54
Worksheet time: 27mins
In college, people can major in a wide variety of fields including medicine, journalism, business, and design among others. This is an example of the concept of
scarcity
specialization
elastic demand
progressive taxation
Investing heavily in new capital equipment and technology is MOST related to
economic freedom
supply and demand
economic growth
opportunity costs
Economic growth is often tied to investment in machinery, new technology, and education of the population. This is because
the only way to measure economics growth is to observe changes in these factors
investment in these items are the sole determinant of output
all of these items improve capital
these items lead to a greater productivity of inputs
When two people engage in trade, both sides will benefit if the trade meets which two requirements?
voluntary and non-fraudulent
non-voluntary and fraudulent
free and international
rational and marginal
In what way does specialization increase productivity?
Specialization reduces scarcity
Specialization reduces the costs of production
Specialization increases the demand for a product
Specialized workers are generally more highly educated
A headline reads: "High Tech Firms Begin Producing New Generation of Computers." What basic economic question is being addressed in this headline?
how to produce
what to produce
when to produce
for whom to produce
What causes scarcity?
specialization and division of labor
trade-offs and opportunity costs
limited resources and unlimited wants
innovation and entrepreneurship
What is an indicator that rational decision making is happening?
marginal benefit is greater than marginal cost
marginal cost is greater than marginal benefit
marginal benefit and marginal cost are equal to each other
none of the above
What does point A represent on the production possibilities curve?
the maximum use of resources
a production impossibility with the given amount of resources
an inefficient use of resources
amount of specialization in production
What does point X represent on the production possibilities curve?
the maximum use of resources
a production impossibility with the given amount of resources
an inefficient use of resources
amount of specialization within production process
What does point D represent on the production possibilities curve?
the maximum use of resources
a production impossibility with the given amount of resources
an inefficient use of resources
amount of specialization within production process
What is it called when the amount of output (final goods/services) is greater than the unit of input (resources)?
efficient
specialization
factor of production
productivity
In economics, what is the next best alternative when making a decision?
trade-off
rational decision
marginal benefit
opportunity cost
In economics, what is the complete list of choices that we can make as consumers?
trade-off
rational decision
marginal benefit
opportunity cost
The fundamental problem of Economics: Unlimited wants, limited resources.
Opportunity Cost
Trade Offs
Scarcity
Marginal Benefit
The SECOND best alternative given up when making a decision.
Opportunity Cost
Trade Offs
Scarcity
Rational Decision Making
Marco must choose between buying a Play Station 4 and the Xbox X. He chose the Place Station 4. What is his opportunity cost?
Play Station 4
Xbox X
The Play Station 4 and the Xbox X
There is no opportunity cost
The factors of production (land, labor, capital, and entrepreneurship) are also known as this:
Trade Offs
Environmental Resources
Natural Resources
Productive Resources
What is an example of a NATURAL resource?
Cows, Iron, trees
Hammer, saw, a factory
A business owner
A construction worker
What would be THREE reasons for an entrepreneur to start their business?
Profit
Paying taxes to the government
To work for others
Creating/innovating new products
To create jobs
Receiving the training necessary to perform a job is building what?
Entrepreneurship
Physical Capital
Human Capital
Labor
Students study for their unit one exam because they wish to pass the exam. Getting a good grade is a(n) _______. Where people respond to rewards and punishments in predictable ways.
Incentive
Rational Decision Making
Scarcity
Opportunity Cost
Papa John's hired a new worker. They noticed this worker can make ten extra pizzas for them per hour. The ten extra pizzas is known as:
Specialization
Marginal Cost
Marginal Benefit
Opportunity Cost
The Honda plant divides their workers into specific jobs on their assembly line. The workers do this one task all day. This is an example of what economic principals?
Opportunity Cost and Trade Offs
Rational Decision Making
Division of Labor and Specialization
Positive and Negative Incentives
The Coca Cola factory is considered what factor of production?
Land
Labor
Physical Capital
Human Capital
A new breakthrough in computer technology allows food to be grown faster and more abundantly. This would cause PPC to shift to the________.
Right
Left
No Shift
The relationship of outputs to inputs is known as:
Productivity
Scarcity
Opportunity Cost
Specialization
In order for a company to increase their efficiency, productivity, and overall profits, they should seek to:
Never update their technology
Let their employees train themselves
Invest in new technology, but not train employees
Invest in new technology and education for their workers
Looking at the PPC graph, which letters are efficient? Click ALL that apply.
A
B
C
E
F
Looking at the PPC graph, which letter(s) are inefficient? Click ALL that apply.
A
B
C
E
F
Looking at the PPC graph, which letter(s) are not possible? Click ALL that apply.
A
B
C
E
F
What is the opportunity cost of moving from D to C?
50 Clothes
25 Food
Going to RUSH and willingly paying $15 to jump in their trampoline park demonstrates what economic principal?
Voluntary Exchange
Rational Decision Making
Incentives
Opportunity Cost
What is the opportunity cost of moving from 100 clothes to 150 clothes?
50 Clothes
25 Food
Demarco going to his job at Cook Out is an example of which productive resource?
Land
Labor
Entrepreneurship
Human Capital
Looking at the graph, determine if the following is true or false: The more education you receive, typically the higher your income and therefore your standard of living will be.
True
False
Which of the following is NOT one of the 3 Economic questions?
What to produce
Whom to produce for
How to produce
When to produce
Ben's marginal benefit of practicing his golf swing for an extra hour is...
the lost time he could have spent hanging out with his friends.
the extra energy he spent by practicing.
the additional wear and tear he put onto his golf clubs.
the additional muscle memory he obtains.
______________ the things that will enhance your ability to work. (included would be education, training and healthcare)
Entrepreneurship
Human Capital
Consumer Sovereignty
Voluntary Exchange
A __________________ takes risk by responding to consumer sovereignty and combining resources
Command Economy
Market Economy
Entrepreneur
"Productive" Employee
What is the "land" resource when making a pizza?
The Delivery Boy
The Oven
The Pizza Shop Owner
The Dough/ Cheese/ Sauce
By designating positions on a football team (QB, RB, O-Line, etc.) a coach is taking advantage of...
Entrepreneurship
Incentive
Divisions of Labor
Productivity
Tommy decides to go to spend $11 at the movies as opposed to going out to dinner with his friends. What is Tommy's opportunity cost?
the lost enjoyment of spending time with his friends.
the $11 he spent at the movies.
every other use of his time, given up while at the movies
the enjoyment he receives at the movies.
A broke college student attempts to save money by waiting until his car is on "fumes" before filling up his tank. This could be described as...
Highly Efficient
A Non-Rational Decision
An Externality
Voluntary Exchange
Freddie Freeman paid $1,000 to the fan that caught his first career home run ball. This is an example of:
Incentive
Marginal Cost
An Externality
Voluntary Exchange
Which of the following likely has the MOST human capital?
Teachers
Surgeons
Professional football players
Astronauts
The study of how people use their scarce resources to satisfy their unlimited wants.
Scarcity
Economics
Microeconomics
Macroeconomics
A graphic representation showing all of the possible combinations of two goods or services that can be produced in a stated period, assuming that the amount of available resources and technology will not change during the period, and that all of the national, human, and capital resources involved are being used in the most efficient manner possible.
Production Possibilities Curve
Opportunity Cost
Productivity
Factors of Production
A resource used to produce goods and services.
Factors of Production
Capital Resource
Capital Good
Production Possibilities Curve
Which technological improvement did the assembly line bring?
reduction of human workload
improved communication
faster transportation
greater productivity
Which best explains why resources need to be allocated in the game of economics?
If sufficient resources are not set aside for future production, scarcity cannot be eliminated.
There are not enough resources to produce all of the goods and services that everyone wants.
There are always different production methods for the same goods and services.
Natural resources are often found in places far from where they are used for production
Casey works in a government-owned radio factory in a command economy. While the factory superintendent sets quotas for how many radios should be produced, workers rarely meet the quota, and the quality of the radios is low. However, they all get paid the same amount each week.
Which characteristic of free enterprise is missing in this scenario?
labor
wages
incentives
industrial production
A business, area or economy focuses on the production of a limited scope of products or services to gain greater degrees of productive efficiency within an overall system
Specialization
Economic Exclusivity
Division of Labor
Voluntary Exchange
