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Economic basics

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

The three key economic questions are:

a)

What should be produced?

How to produce?

Who should we produce for?

b)

How to produce?

How much do we make?

What is my profit?

c)

Who should we produce for?

What is my profit?

What should we charge for the product?

d)

How much do we produce?

Who should we produce for?

What is the tax?

2.

What's the difference between macroeconomics and microeconomics?

a)

Macroeconomics is the study of worldwide, national, or a region of economics while microeconomics is the study of individual market participants.

b)

Macroeconomics is the study of industrialized country's economies while microeconomics is the study of emerging economies.

c)

Macroeconomics studies the repeating patterns in economics while microeconomics studies one time anomalies.

d)

Macro economics is the study of all of the world's economies while microeconomics is only the study of the US economy.

3.

What is economics?

a)

The study of a government's distribution of resources

b)

The study of consumers' spending habits

c)

The study of a society's allocation of resources

d)

The study of buying and selling in the stock market

4.

Scarcity can best be defined as

a)

Scarcity can best be defined as

b)

Where demand is greater than supply

c)

Unlimited wants vs Limited resources

d)

Limited wants vs unlimited resources

5.

 Which of the following resources would economists classify as “capital”?    

a)

Raw Bauxite in a South African mine

b)

A hammer used in framing a house

c)

A worker hired to repair engines

d)

Trees used tomake paper

6.

 The major types of resources used to make a product are called  

a)

natural resources

b)

factors of reduction

c)

factors of production

d)

capital resources

7.

________ are decisions we all must make due to scarcity.

a)

trade offs

b)

scarcity

c)

choice

d)

incentive

8.
a)

want

b)

need

9.
a)

want

b)

need

10.
a)

want

b)

need

11.
a)

want

b)

need

12.
a)

want

b)

need

13.
a)

want

b)

need

14.

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  

What is the opportunity cost of their decision?

a)

muffins

b)

cookies

15.

Who is the father of economics?

a)

John Adams

b)

Thomas Jefferson

c)

Adam Smith

d)

George Washington

16.

What is the name of the book that we read from this week on economic concepts?

a)

Economic 101

b)

Wealth and poverty in the economy

c)

The Wealth of Nations

d)

Nations and their decisions

17.

Which of the following in NOT an example of Land resource

a)

b)

c)

d)

18.

The Welch family has saved some money.  They can spend it on a vacation to the Grand Canyon or build a swimming pool in their back yard.  They decide to spend the money on a swimming pool.

 What is the opportunity cost of their decision?

a)

vacation

b)

swimming pool

19.

When I choose one item over another because I cant afford both, this is called an ...

a)

scarcity

b)

opportunity cost

c)

choice

d)

incentive

20.

 What is the fundamental problem of economics? 

a)

How to keep consumers out of debt?

b)

How to fulfill our unlimited wants and needs with limited resources?

c)

How to figure out the way to make the most money?

d)

How do we ensure all people get a college education?