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The Basic Terms of Economics

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

Microeconomics examines the cause-and-effect relationships that ... choices of individuals, business firms and society.

(a)  

2.

Which is the odd-one-out if we talk about microeconomics?

a)

Scarcity

b)

Consumption

c)

Unemployment

d)

Opportunity costs

3.

High unemployment shouls be turned into low unemployment is a ... goal.

(a)  

4.

It is the act of using resources to satisfy current needs and wants.

a)

Substitute

b)

Production

c)

Opportunity cost

d)

Consumption

5.

When supply of a resource cannot meet demand.

a)

Scarcity

b)

Factors of production

c)

Opportunity cost

d)

Debt

6.

These are similar to product markets but refer to the components that are required for production, not just the products.

a)

Households

b)

Producers

c)

Consumers

d)

Resource market

7.

What are the factors of production?

a)

Labour, land, capital, entrepreneurship

b)

Consumers, Producers

c)

Households, companies

d)

Supply and demand

8.

People engage in activities such as fishing and hunting.

a)

Market economy

b)

Command economy

c)

Mixed economy

d)

Traditional economy

9.

This economy is controlled and coordinated by the state.

a)

Planned economy

b)

Market economy

c)

Mixed economy

d)

Traditional economy

10.

Production and allocation of resources are prescribed by the state.

a)

Traditional economy

b)

Mixed economy

c)

Command economy

d)

Market economy

11.

Resources are allocated through the price mechanism.

a)

Mixed economy

b)

Planned economy

c)

Market economy

d)

Traditional economy

12.

The second ingredient is the desire to earn profits.

a)

Command economy

b)

Market economy

c)

Traditional economy

d)

Mixed economy

13.

The profit motive gives sellers the incentive to produce at the (a)   possible cost.

14.

The black economy is strong because of the shortage economy.

a)

Market economy

b)

Command economy

c)

Mixed economy

d)

Traditional economy

15.

There is (a)   economy in most democratic countries.