WorksheetsBasic Economic Concepts
Total questions: 25
Worksheet time: 13mins
Scarcity is when...
we have unlimited wants and unlimited resources
our wants are greater than available resources
our resources are greater than our wants
resources are employed fully to minimize waste
Instead of studying for your test, you could have cooked dinner, went to the movies, or exercised. These alternatives represent your...
scarcity
resources
trade-offs
time value of money
A point located inside the production possibilities curve is thought of as...
an inefficient use of resources
an efficient use of resources
not possible given current resources
a better use of resources
A PPC that is bowed outward represents...
decreasing opportunity costs
constant opportunity costs
no opportunity costs
increasing opportunity costs
Producer A can produce either 5 units of chocolate or 10 aloe plants per day. Producer B can produce either 3 units of chocolate or 12 aloe plants per day. Based on this information, which of the following is true?
producer A has the absolute advantage in producing aloe
producer B has the absolute advantage in chocolate
producer B has the comparative advantage in producing chocolate
producer B has the comparative advantage in producing aloe
Which if the following is NOT a characteristic of a well-functioning command economy?
central decision-making body
property rights
scarce resources
supply
The factors of production include land, labor, capital and...
entrepreneurship
supply and demand
externalities
deficits
The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources
Consumer Sovereignty
Economics
Opportunity Cost
Competition
A basic requirement for survival-i.e, food, clothing, shelter
Durable Good
Consumer Good
Need
Want
The tools, equipment, machinery, and factories used in the production of goods and services
Capital
Tools
Durable Goods
Consumer Goods
Something produced and intended for final use by individuals
Consumer Good
Capital Good
FOMO
Capitalism
Product that lasts 3 years when used regularly
Capital Good
Durable Good
FOMO
Insurable Good
Type of market economy in which the factors of production are privately owned.
Capitalism
Communism
Socialism
Mixed Economy
The struggle among sellers to attract consumers.
Profit Motive
Competition
Private Property
Consumer Sovereignty
Economic system that has some combination of traditional, command, and market economies.
Capitalism
Traditional Economy
Mixed Economy
Market Economy
Fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish.
Competition
Private Property
Profit Motive
FOMO
Driving force that encourages people and organizations to improve their material well-being.
FOMO
Market Economy
Profit Motive
Voluntary Exchange
Economic system in which the allocation of scarce resources and other economic activity is the result of habit, ritual, or custom.
Mixed Economy
Traditional Economy
Market Economy
Command Economy
Act of buyers and sellers freely and willingly engaging in market transactions.
Profit Motive
Competition
FOMO
Voluntary Exchange
"Fear of Missing Out", a popular explanation for why people make the economic choices that they do
FOMO
Competition
Scarcity
Opportunity Cost
Define "incentive."
The cost of producing a good or service
The fact that human wants are unlimited but resources are limited
Something that motivates someone to do or not do something
The price charged for a good or service
Esteban makes $300 per day at his job. He decides to take an unpaid day off of work to go to a Rangers game. He pays $100 total for the ticket, parking, transportation to and from the game, and concessions at the game. What is the value of Esteban's total "opportunity cost" of attending the game?
$100
$200
$300
$400
$500
_____________ advantage refers to the ability of an individual or group to do something better overall than another individual or group.
Absolute
Comparative
Competitive
Superior
Product
______________ advantage refers to the ability of an individual or group to do something at a lower opportunity cost than another individual or group
Absolute
Competitive
Comparative
Product
Opportunity Cost
A country that has an absolute advantage in producing everything cannot benefit from trading with any other country.
True
False
