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WorksheetsBusiness Essentials - 2.02C Economics and Economic Activities
Total questions: 20
Worksheet time: 10mins
Into what two categories can wants be divided?
Unlimited and noneconomic
Economic and noneconomic
Unlimited and limited
Unlimited and economics
Seeing a movie at a theater would be considered a(n) __________ want.
unlimited
limited
economic
noneconomic
Friendship would be considered a(n) __________ want.
economic
limited
noneconomic
unlimited
Which of the following groups of words best describes wants:
Limited, changing, and compensating
Limited, unchanging, and competing
Unlimited, unchanging, and compensating
Unlimited, changing, and competing
Water and air are examples of __________ resources, while people are considered to be __________ resources.
capital; human
natural; human
physical; mental
mental; natural
In economics, capital goods include
buildings and equipment.
labor and management.
mental and physical work.
trees and water.
Why are resources considered limited?
Everyone has them, and they change.
Entrepreneurs do not invest enough of them.
There are so many that people must decide which ones to choose at any one time.
There are not enough available for everyone to have as much of them as desired.
A gap between unlimited wants and limited resources creates
scarcity.
economics.
wants.
resources.
Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is
creating scarcity.
economizing.
increasing distribution.
a producer.
John only had $40 to spend and couldn’t decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?
New pair of jeans
$40
No opportunity cost was involved.
Trip to amusement park
A manager is willing to accept the production of fewer products as long as their workers produce higher-quality products. The manager is making a(n)
exchange.
trade-off.
capital good.
distribution.
What are the three basic economic questions?
When will products be produced, how will products be produced, and how will products be allocated
Where will products be produced, when will products be produced, and what products will be produced
What products will be produced, how will products be produced, and how will products be allocated
When will products be produced, what products will be produced, and how will products be allocated
The heart of economics is
wants.
resources.
trade-offs.
decision-making.
Which of the following is the best reason for studying economics:
To determine which occupations interest you
To find the best use for resources and supplies
To prepare for effective decision-making and responsible citizenship
To learn how to invest money and express social responsibility
The ultimate goal of all economic activity is
consumption.
production.
exchange.
distribution.
For consumption to occur, goods and services must be
specialized.
improved.
exchanged.
produced.
What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments?
Exchange
Distribute
Produce
Consume
Distribution examines how income is divided between
producers and resource owners.
consumers and producers.
consumers and resource owners.
producers and economizers.
Consumers are typically most willing to pay more for goods and services that bring them greater
opportunity costs.
satisfaction.
popularity.
trade-offs.
Two factors involved in determining the value of a resource, good, or service are
availability and trade-offs.
demand and desires.
productivity and opportunity costs.
availability and demand.
