WorksheetsEcon Unit 1 Review
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Societies embrace various economic systems to deal with the fundamental problem of
a)
Scarcity
b)
Trade
c)
Productivity
d)
Economics
2.
Which of these is most closely associated with opportunity cost?
a)
consumerism
b)
trade-offs
c)
entrepreneurs
d)
productivity
3.
Societies are faced with which three basic questions about production of goods?
a)
what, how, and why
b)
what, where, and when
c)
what, how, and for whom
d)
when, where, and for whom
4.
When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n)
a)
production possibility comparison.
b)
cost-benefit analysis.
c)
economic model.
d)
needs assessment.
5.
Which of the following statements are true about factors of production? (check all that apply)
a)
computers used to produce magazine articles are categorized as Labor
b)
Trees growing in the forest are categorized as Land
c)
A third-grade teacher is categorized as Labor
d)
Motor oil is categorized as Land
6.
The production possibilities curve is of a fictitious country that produces only cars and clothing. What does the curved line depict?
a)
The country can produce 425 units of clothing and 80 units of cars.
b)
The production of cars has fallen to zero over time.
c)
The maximum quantity of cars and clothing that can be produced if the country is running at full efficiency.
d)
Whether the country should specialize in producing cars or clothing.
7.
Opportunity cost refers to
a)
the dollar amount attached to a good or service.
b)
the cost of labor when production is expanded or changed.
c)
the cost of not expanding production.
d)
the value of the next best alternative.
8.
One of the characteristics of a capitalist free enterprise economy is
a)
the minimum wage.
b)
consumerism.
c)
voluntary exchange.
d)
central planning.
9.
Which of these helps explain why mixed economies develop?
a)
People become unhappy with aspects of their current economy.
b)
People are seldom exposed to the ideas and technologies of other cultures.
c)
Government control of an economy tends to make a nation more prosperous.
d)
Government control of an economy leads to a diversity of economic approaches.
10.
In which of these systems is the government most likely to provide people with goods and services they could not otherwise afford?
a)
a market economy
b)
a socialist economy
c)
a traditional economy
d)
the level of personal freedom the citizens enjoy.
11.
The key difference between the communist, socialist, and free-enterprise economic systems is
a)
who owns the factors of production.
b)
the amount of government regulation over business operations.
c)
the level of personal freedom the citizens enjoy.
d)
how much the government honors the democratic process.
12.
Keynesian economic policies are designed to lower unemployment by _____.
a)
stimulating aggregate supply
b)
stimulating aggregate demand
c)
reducing aggregate demand
d)
creating government jobs
13.
Which of these is most associated with the economic philosophy of Adam Smith?
a)
nonprice competition
b)
laissez-faire price-fixing
c)
natural and geographic monopolies
d)
limited government economic involvement
14.
Which of these is a major advantage of the U.S. free enterprise system?
a)
There is a high degree of individual freedom.
b)
It can change direction rapidly as needed when markets change.
c)
There is efficient government control of production and distribution.
d)
People are likely to be offered goods and services they cannot afford.
15.
In the U.S. free enterprise system, who ultimately determines the success of a product?
a)
the government
b)
the business producing the product
c)
the consumer
d)
the store selling the product
16.
Why do manufacturers engage in outsourcing labor?
a)
Outsourcing lowers wages at home.
b)
Outsourcing increases profits without increasing prices.
c)
Outsourcing raises the standard of living in developing nations.
d)
Outsourcing maximizes the comparative advantage of both nations.
17.
How might a local government attract a company to set up business in their area?
a)
They confiscate land to offer sell to a company at a deep discount.
b)
They offer tax breaks as incentives to relocate.
c)
They adjust the local trade school curriculum to match the needs of the company.
d)
They promise to eliminate export tariffs on the company’s products.
18.
Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in
a)
the factor market.
b)
entrepreneurship.
c)
human capital.
d)
the product market.
19.
Which of these would most likely negatively impact a country’s overall level of income?
a)
an increase in demand for new automobiles
b)
increased tourist activity during the summer months
c)
increased commercial activity during the year-end holiday season
d)
an increase in demand for used automobiles
20.
Government can slow the economy and reduce inflation by
a)
Purchasing factors of production in the product market
b)
Purchasing finished goods in the product market
c)
Collecting taxes from both households and businesses
d)
Transferring money to households and businesses
100 %
