WorksheetsChapter 1 Assignment - What is Economics
Total questions: 73
Worksheet time: 37mins
The study of ow people figure out ways to ge things they need and want by making choices.
Need
Economics
Service
Business
Something a person cannot live without
Land
Food
Need
Want
Scarcity
Having a limited number of an item
Being afraid
Action
Physical items
Actions one person does for another person
Favor
Resource
Service
Capital
What is land?
A place to farm
All the natural resources used to make goods
A necessary resourec
Third factor of production
What are the factors of production?
Land, Labor and farming
Land, Labor, Capital and Entrepreneurs
Logging, Production, Service and Farming
What is an example of Capital?
Money
Tools
Factories
all of the above
Define entrepreneur.
Business Owner
Banker
Worker
Physical Item
This an example of a physical item.
talking
dream
prayer
car
All the people who work for money.
Labor
Factor of Production
Labor Force
Job
A worker learning one task very well is:
specialization
consumerism
nondurable good
scarcity
What is another term for quality of life?
production possibilities curve
standard of living
factor market
capital good
This represents the range of production possibilities.
gross domestic product
factor market
production possibilities curve
capital good
The place where all of the factors of production are bought and sold.
specialization
capitalism
production possibility curve
factor market
A fundamental problem in every society is:
scarcity
capital goods
gross domestic product
standard of living
This measures a country's output and economic health.
gross domestic product
standard of living
factor market
A manufactured good used to product other goods and services.
durable good
nondurable good
capital good
consumerism
Food is an example of which of the following?
scarcity
capital good
durable good
The reliance on others to produce goods and services that we need is:
economic interdependence
scarcity
economic dependence
consumerism
The movement that promoted the rights of the people buying things is called:
gross domestic product
consumerism
the goods movement
capitalism
A nation's wealth is determined by its:
accumulation of all tangible and Intangible resources.
natural resources.
accumulation of all tangible products.
product possibilities frontier.
The most comprehensive measure of a nation's wealth is provided by its:
gdp (gross domestic product)
product possibilities curve
TINSTAAFL rating
capital goods
Which of the following statements best describes the purpose of the production possibilities curve?
It predicts the future production of a nation
It identifies trends in production
It shows which products are most profitable
It identifies all possible combinations of goods and services an economy can produce
Which of the following descriptions best explains the meaning of opportunity cost?
the initial cost of starting a new business
the cost of business failure
the cost of choosing one alternative over another
the risk associated with producing a new team
Consumers walting in long lines for a new product is an example of:
consumerism
consumer's rights
consumer's responsibilities
scarcity
When a nation's total output increases over time, the nation is experiencing:
a decrease in gross domestic product
economic growth
economic interdependence
an expansion of the possibilities curve
The efficient use of scarce resources leads to an increase in:
productivity
scarcity
investment
capital
When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be:
production possibility comparison
cost-benefit analysis
economic model
needs assessment
condition that results from society not having enough resources to produce all the things people would like to have
scarcity
need
land
capital
a basic requirement for survival
scarcity
need
land
capital
factor of production that includes natural resources not created by humans
scarcity
need
land
capital
factor of production that includes tools, equipment, machinery, and factories used in the production of goods and services
scarcity
need
land
capital
an item that is economically useful or satisfies an economic want
good
service
market
human capital
location or other mechanism that allows buyers and sellers to exchange a certain economic product
good
service
market
human capital
a measure of the amount of output produced by a given amount of inputs in a specific period of time
good
service
market
productivity
the sum of the skills, abilities, health, and motivation of people
service
market
productivity
human capital
the cost of the next best alternative when a choice is made
opportunity cost
production possibilities frontier
trade-offs
free enterprise economy
diagram representing various combinations of goods and services and economy can produce when all resources are fully employed
opportunity cost
production possibilities frontier
trade-offs
standard of living
alternative choices
opportunity cost
trade-offs
free enterprise economy
standard of living
where consumers and privately owned businesses answer the three basic economic questions
trade-offs
production possibilities frontier
standard of living
free enterprise economy
the quality of life based on the possession of the necessities and luxuries that make life easier
standard of living
free enterprise economy
trade-offs
opportunity cost
An economy at its production possibility frontier is operating
with slow economic growth
at full potential
without division of labor
as a free enterprise economy
The money used to buy the tools and equipment needed for production is known as
capital goods
the factors of production
financial capital
wealth
Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of
opportunity costs
trade-offs
specialization
economic interdependence
What two characteristics must an item possess to have monetary value?
scarcity & capital
capital & transferability
transferability & utility
utility & scarcity
Who was Adam Smith?
inventor of the assembly line
author of The Wealth of Nations
economic advisor to U.S. presidents
economist who coined the term TINSTAAFL
What three basic economic questions must all societies answer? SELECT ALL THAT APPLY
What to produce?
How to produce?
When to produce?
For whom to produce?
In the U.S., consumers spending influences what type of economic decision?
goods to produce
production methods to follow
government services to provide
automation techniques to employ
The two broad groups of people whose choices drive the economy
consumers & laborers
producers & consumers
laborers & entrepreneurs
entrepreneurs & producers
Economists measure economic growth by examining
total output of goods and services over time
the needs and wants of the population over time
the risks and sacrifices assumed by businesses over time
population growth compared with available resources over time
What are the effects of specialization? Select ALL that apply.
self-sufficiency
increased efficiency
economic interdependence
weaker international cooperation
When a business owner hires someone to run the cash register, that person and the business owner are participating in the
factor market
capital market
product market
financial market
The purpose of an economic model is to....
Select ALL that apply.
direct economic activity
analyze economic activity
predict economic activity
describe economic activity
What term describes a society in which the majority of economic choices are made without government interference?
factor market
free enterprise
entrepreneurial
standard market
A want is something you need to survive
True
False
Human Capital is Knowledge Skills and Experience someone posses
True
False
A shortage is when something happens and a good or service is temporary unavailable.
True
False
What we call someone who brings together land labor and Capital
Capitalist
Manager
Entrepreneur
Laissez-faire
Fred goes to the mall with $100. He is torn between two items to spend his money on. He can either buy new headphones or he can buy some shoes that are on sale. Fred cannot buy both since they are almost exactly $100 each. Fred decides that he would rather have headphones than the shoes because he likes blowing out his ear drums. What is Fred’s opportunity cost?
The shoes
The headphones
Saving $100
No opportunity costs occur, this is a win-win situation
Why do economists say "There is no such thing as a free lunch"?
Everything is expensive and inflation makes it worse
Businesses will cover the costs through other ways, even if it's not obvious at the time
Economists want people to know that they must work in order to survive in the world
Economists hate lunch
Why is a PPF's curve typically bowed outwards?
Decreasing opportunity costs
Proportional opportunity costs
Increasing opportunity costs
No opportunity costs
What does point "X" represent on the PPF?
Inefficiency/Under-utilization
Efficiency
Scarcity
A letter
Why would this economy want to produce at point A, B or C?
These points represent efficiency/maximum production
These points represent growth
These points do not incur opportunity costs
The economy should not produce at these points
If this economy decides to produce at point "C", what is their opportunity cost?
Cars
Point X
Point Y
Refrigerators
How would this economy be able to produce at point Y?
More resources
Fewer resources
Recession
They will never reach point Y
What can you infer based on the shift in the PPF?
Both areas are seeing technological advancement
There was a technological advancement in corn, but not in robots
There was a technological advancement in robots, but not in corn
The economy is shrinking
What is the name of this model?
Circular flow
PPF
Supply and Demand
Factor model
What type of good is a refrigerator?
Durable
Nondurable
Capital
What is the opportunity cost of producing at point A instead of point B?
120 units of clothing
40 cars
100 units of clothing
30 cars
What is the trade-off of producing at point B instead of point A?
You gain 30 cars but must give up 100 units of clothing
You gain 100 units of clothing but give up 30 cars
There is no trade-off
The trade-off is losing labor
Which point on the PPF indicates scarcity?
D
B
E
C
Consumers are expected to read the full information about a product before making a purchase. This is an example of a consumer’s
Responsibilities
Rights
Habits
Opportunities
The ________ states that a necessity such as water typically does not hold as high a value as an item such as a diamond, which is a non-necessity.
Inverted theory
Law of Diminishing Marginal Returns
Paradox of Value
Utility Theory
