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WorksheetsECON LT Quiz #1
Total questions: 50
Worksheet time: 2hrs 40mins
The study of how we make decisions in a world in which resources are limited is called...
Economics
Microeconomics
Macroeconomics
Opportunity Cost
Mrs. Hartley planning a vacation is a...
Want
Need
Trade-Off
Opportunity Cost
____________ occurs whenever we do not have enough resources to produce all the things we would like to have.
Economic System
Economics
Macroeconomics
Scarcity
Looking at the "big picture" of the economy describes...
Economics
Microeconomics
Macroeconomics
Trade-Off
Food and shelter are examples of...
Wants
Needs
Resources
Income
The cost of the next best use of your time or money when you choose to do one thing rather than another.
Scarcity
Cost-Benefit Analysis
Opportunity Cost
Trade-Off
Which famous book did Adam Smith write?
Wealth of Nations
Communist Manifesto
Green Eggs and Ham
The Bible
Which is factors of production?
Labour,Land,Capital,Machineries
Natural Resources,Human Resources and Process Resources
Labour,Land,Capital,Entrepreneur,Human Ability & Capability
All of them
Determine either the following statement is Positive or Normative Economics. We should redistribute wealth from the rich to the poor. So, the quantity of poor people can be reduce.
Normative economic
Positive economic
Capital economic
Public economics
Determine either the following statement is Positive or Normative Economics. If the price of books goes up, people will buy less. Therefore, we should not allow the price to go up
Positive Economics
Normative economics
Determine either the following statement is Positive or Normative Economics. The price of milk has risen from $3 a gallon to $5 a gallon in the past five years.
Normative economics
Positive economics
Adam Smith believed that the wealth of a nation depends on material possessions and the labor and skills of its people. However, the Nation would fail without___________________
people and their skills
possessions
material possessions and labor
______________ is the capacity to be useful and provide satisfaction.
Value
Paradox of value
Utility
Economics
What are Economic Questions? check all that apply
Why produce
What to produce
How to produce
When to produce
Who are you producing for
A positive statement...
cannot be negative.
cannot be tested.
can be tested against the facts.
depends on someone’s value judgment.
Which of the following is NOT an example of a factor of production?
A forest.
A computer program.
A labor leader.
Dollars.
Which of the following is a microeconomics topic?
A price of a new home.
The inflation rate.
The economy's growth rate.
The unemployment rate.
An entrepreneur is:
an employee in a factory.
the manager of a factory.
the person who conceives and starts a business.
the person who contracts to work for a specific price.
Which of the following is true of the production possibilities curve?
Any point inside the curve is inefficient, and any point outside the curve is unattainable.
Any point inside the curve is unattainable, and any point outside the curve is inefficient.
Any point inside the curve is unattainable, and any point outside the curve is unattainable.
Any point inside the curve is inefficient, and any point outside the curve is inefficient.
The various combinations of goods and services that can be produced, when an economy uses its available resources and technology efficiently, is called:
scarcity.
unlimited production.
opportunity cost.
production possibilities.
What two factors contribute to scarcity?
Limited resources and wants
Unlimited wants and limited resources
Unlimited resources and limited wants
Unlimited resources and wants
What point Illustrates scarcity?
A
B
C
None of the points
Josie decided to go to college full-time instead of working. Which of the
following is the opportunity cost of going to college for Josie?
The final benefit of graduating from college.
The income she would have earned by working.
The cost of college tuition.
The income she will earn in the future for being a college graduate.
How many goods are compared on a production possibilities curve?
1
2
3
4
Points B, D, and C represent ___________ use of resources.
Ineffecient
Efficient
Unfeasible
Point A represents an __________ use of resources.
Smart
Inefficient
Efficient
Unfeasible
Which factors could cause an increase the productive capacity of the PPC?
Adding land, labor, and capital
Losing land, labor, and capital
Predict: What would have to happen to achieve production at point F?
Build more factories & hire more workers
Factories get destroyed by fire
There is a shortage of materials used to make shoes and food
Get more educated leadership.
What is the opportunity cost of moving from production from point D to B?
35 units of food
1,000 units of clothes
150 units of clothes
100 units of clothes
What is the opportunity cost of moving from production from point B to D?
100 units of food
25 units of food
35 units of clothes
50 Units of food
Communist Manifesto was authored by:
A. Stalin
B. Karl Marx
C. Laski
D. George Bernard Shah
According to Marxian theory revolutions come in the society because:
A. The capitalists so desire
B. The religious people manipulate that
C. Continuous class struggle is going on
D. Educated masses get dissatisfied
In a command economy, who keeps all of the profits?
Government
Citizens
Businesses
None of the above
Which of the following would be examples of countries with a command economy?
China
India
France
North Korea
The tribe relied on hunting and farming for food. The boy knew he would be a farmer just like his Dad had been. What kind of economic system does this describe?
Market
Command
Traditional
Mixed
What is the Opportunity Cost of moving from C to A?
(a)
What is the Opportunity Cost of moving from B to E?
(a)
The concept of opportunity cost would no longer be relevant if
all current incomes were invested in technological research
resources were allocated effectively
poverty in an economy no longer existed
the supply of all resources was unlimited
According to the graph above, if a country is currently producing at point X, the opportunity cost of producing another consumer good is
20 capital goods
more than 20 capital goods
fewer than 20 capital goods
20 consumer goods
fewer than 20 consumer goods
As a factor of production, capital refers to the
money available to start a business
stocks and bonds issued by businesses to raise funds
financial investment of businesses
currency in circulation and deposits in financial institutions
tools and machinery used to produce goods and services
