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WorksheetsUnit 1: Economic Decisions & Systems Review for Test
Total questions: 40
Worksheet time: 23mins
What determines whether something you want is really necessary or not?
the country you live in
the economic status of your family
the lifestyle of your family
all of these
Needs and wants are______________ in terms of economics.
scarce
unlimited
limited
none of these
Items that you can see and touch are called __________, and ____________are activities that are consumed at the same time they are produced.
intangible, tangible
services, goods
goods, services
none of these
Some believe that the high level of US Consumer demand comes from:
quantity of goods and services available
amount of money business spends on advertising
quantity of goods and services and amount of money spent on advertising
none of these
Products and goods are the same thing in econoomics.
True
False
What are types of natural resources in economics?
capital resources
natural resources
human resources
all of these
Minerals, plants, fish and animals comprise what type of economic resource?
natural
human
capital
all of these
Truck drivers, farmers, salespeople and retail workers comprise which economic resource?
natural
human
captial
all of these
Money and products used in producing goods and services is which type of economic resource?
natural
human
capital
none of these
Resources are unlimited.
TRUE
FALSE
What is the basic economic problem?
trade-offs
natural resources
opportunity cost
scarcity
The point at which supply and demand intersect and are equal is called the _____________price.
demand
supply
market
opportunity
Market Economy
resources are owned & controlled by the people of the country
Traditional Economy
goods & services are produced by the usual methods
command economy
resources are owned & controlled by the govt
mixed economy
combines the elements of command & market economies
opportunity cost
the value of the next best alternative that you did not choose
A consumer gives up extra money in their savings to spend it instead on Valentine's Day purchases. This economic decision is called a:
trade off
scarcity
supply curve
none of these
Which is NOT one of the three economic questions?
What goods & services will be produced?
How should the goods and services be advertised?
How will the goods & services be produced?
What needs & wants will be satisfied with the goods & services produced?
Individuals and organizations that determine what products and services will be available for sale are called:
consumers
producers
suppliers
none of these
The quantity of goods or services that a consumer is willing & able to buy:
supply
demand
opportunity cost
trade off
The quantity of a good or service that businesses are willing and able to provide:
demand
supply
opportunity cost
scarcity
The ________curve for a product illustrates the relationship between the price of a product and the quantity demanded by consumers.
demand
supply
neither of these
both of these
The ________curve for a product illustrates the relationship between the price of a product and the quantity businesses will supply.
demand
supply
netiher of these
both of these
Recently, studies show that personal trainers are in demand. According to the theory of supply and demand, a higher demand will create...
a lower price
a higher price
no change in price
unstable prices
If the price of one product is much higher than another comparable product, what might a consumer do?
stop buying both products
substitute one product for another
buy less of the products
buy more of the products
Which of the following is NOT one of the factors that determines the market price for a product or service?
supply
demand
competition
profit
Which of the following factors is our US economic system based on?
competition and profit
private property
freedom of choice
all of these
The last step in decision making is to REVIEW YOUR DECISION. List the other steps in the decision making process in order:
Define the problem
Identify the choices
Evaluate advantages/disadvantages
select a choice
act on your choice
What is the basic economic question?
equilibrium point
resources
opportunity cost
scarcity
Resources are limited in our economic system.
True
false
Suppliers often charge higher prices when demand is high.
True
False
An organization that provides goods and services to satisfy customer’s needs and wants for a profit:
supplier
business
producer
none of these
Building, equipment and supplies are________ resources.
capital
natural
human
The point where supply equals demand is:
supply price
demand price
market price
consumer price
Consumers purchase more of a product or service when prices are high.
True
False
Which is NOT an economic resource?
natural
opportunity cost
capital
human
The four economic systems are based on how much ______is in the marketplace.
demand
supply
business
government
When you don't have enough resources to satisfy every need:
capitalism
consumerism
scarcity
none of these
Our US economic system is based on all of these principles except for which one?
freedom of choice
private property
profit
opportunity cost
What causes businesses to improve products, provide efficient customer service, search for new ideas & keep costs low?
supply
competition
demand
opportunity
The quantity of a good or service that a consumer is willing & able to buy:
supply
demand
equilibrium
competition
The quantity of a good or service that businesses are willing and able to provide is called:
supply
demand
equilibrium
competition
The market price is the point where:
competition =opportunity cost
demand=opportunity cost
supply=opportunity cost
supply=demand
