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WorksheetsBasic Economic Concepts (4 Factors and Econ. Sys)
Total questions: 25
Worksheet time: 23mins
What are the four "Factors of Production"?
(Choose all that apply)
Entrepreneurship
Labor
Economy
Land
Capital
One definition of "Economics" is:
Economics is the study of how society uses its limited resources.
"Anything that satisfies a person’s wants or brings
satisfaction" are called
(a)
"Tasks that people pay others to perform for them" are called
(a)
The electricity that runs throughout the buildings here at Boise High School would fall into the category of....
Land
Labor
Capital
Entrepreneurship
Entrepreneurs are...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
The "gifts of nature" or natural resources not created by human effort.
the tools, equipment, and factories used in production of goods and services
A product or service is scarce when
The amount available is not enough to meet the demands of society
The amount available can satisfy the demands of society
Its price far exceeds the value of the item.
One company is responsible for producing the product.
A command economy is best defined as
An economic system with a central authority that makes major economic decisions
An economic system in which supply, demand, and the price system help people make economic decisions
An Economic system in which private citizens own and use the factors of production in order to generate profits.
An economic system that has some combination of traditional, command, and market activities.
A market economy is best defined as
An economic system with a central authority that makes major economic decisions
An economic system in which supply, demand, and the price system help people make economic decisions
An Economic system in which private citizens own and use the factors of production in order to generate profits.
An economic system that has some combination of traditional, command, and market activities.
Let's say a 2018 Subaru Forester base model costs $20,000. Mr. Marsden decides to buy the $23,000 Premium model because it has heated and motorized seats. Mr. Marsden's marginal opportunity cost in buying the $23,000 Subaru is
$20,000
$23,000
$3,000
heated seats and back up camera
Which of the following is a good consumer rule for expensive items?
Buy the product that your consumer research says is the best.
Buy the most expensive since price reflects quality.
Buy what you want.
Buy the product after comparing the benefits and cost of alternatives.
When deciding whether to do something, you should always choose the alternative
where the marginal opportunity cost is greater than the marginal benefit
where the marginal benefit is greater than the marginal opportunity cost
that just feels right to you at the moment. Just do it!
For MOST people, what is the marginal opportunity cost of attending college full-time?
failure to develop your human capital
having to live at home with your parents
forgone earnings
What is a marginal cost?
It refers to the the cost of production
It refers to the increase in the cost of producing one more unit or serving one more customer
It refers to decrease in the cost of producing one more unit or serving one more customer
Effective decision-making requires comparing the additional costs (marginal costs) and additional benefits (marginal benefits) for each choice.
True
False
