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WorksheetsECON Chapter 1 Review
Total questions: 100
Worksheet time: 1hrs 25mins
Something we desire but that is not necessary for survival
Want
Need
Good
Service
Something essential for survival
Want
Need
Good
Service
Physical objects that someone produces
Want
Need
Good
Service
An action or activity that one person performs for another
Want
Need
Good
Service
SELECT ALL THAT APPLY: Which one of these is an example of a scarce resource?
Time
Money
Food
Oil
The fact that there are limited amounts of goods and services to meet unlimited wants is called:
Scarcity
Shortage
Surplus
Economics
Economics is the study of how people seek to satisfy their needs and wants by making choices
True
False
When individuals or businesses concentrate on only a few things so they can become experts at those few things, it is called...
Scarcity
Specialization
Standard of Living
Supply and Demand
When you have to make a choice, this is the best of the options that you DIDN'T pick. It's what you had to give up in order to go with the choice that you made.
Trade
Specialization
Interdependence
Opportunity Cost
The kind of resources that are provided by Earth - like water, air, soil, solar energy, etc.
Natural Resource
Capital Resource
Human Resource
Goods that are used by people to make other goods or to perform services. This can also include money invested towards making new goods or providing new services. (Examples: tools, machines, buildings, investments)
Natural Resource
Capital Resource
Human Resource
Not being able to have all of the goods and/or services that you want because people have endless wants, but goods and services aren't endless. So people are forced to make choices.
Scarcity
Trade
Standard of Living
Human Resources
***People want more things than they have money to buy.
***The goods and services a society can produce at any one time are limited.
What problem results from these two conditions?
True/False: Human wants will always exceed available resources.
TRUE
FALSE
These are the things we desire to have.
Wants
Goals
Opportunity Costs
When "wants are greater than the resources available to satisfy them," it is called...
Scarcity
Needs
Opportunity Cost
None of these answers
Because of scarcity, people are forced to make _________ about how to use resources.
Choices
Opportunities
Houses
Desires
Which one of the following is an opportunity cost?
You stay out late and your parents ground you.
You run a red light and you get a ticket.
You choose to give up math to study for history.
In a softball game, you miss the ball and strike out.
Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?
Shoes
Jacket
Dress
Purse
Which of these is not a decision which is made to solve the basic economic problem?
What to produce
How to produce
Why to produce
For whom to produce
Which of the below is not scarce resource?
Oil
Sea water
Natural gas
Gold
I LOVE ECONOMICS because ...
Economics is FUN
I have no choice, Economics is the only course I can take
Economics solve REAL LIFE problems
Better Economics than Politics
I do not know
Every Sunday morning, we have many alternatives sport such as Running and Playing Football. so, today i choose to play football with my friends, what is the opportunity cost from this case?
Swimming
Golf
Running
Playing Football
If you decide to study an extra hour tonight, what would be the economic outcome?
The marginal cost of studying an extra hour exceeds its marginal benefit.
The marginal benefit of studying an extra hour exceeds its marginal cost.
Studying harder will always improve your test scores.
You will most likely get a lower than expected grade on your last exam.
Which of the following contributed most the failure of command systems, such as the the Soviet Union and Eastern European Communist States?
Previously abundant economic resources became scarce.
Central planners found it increasingly difficult to coordinate the economic decisions of consumers, resource suppliers, and businesses.
Firms manufactured more output than consumers could afford to buy, resulting in a general glut.
Prices were set too low in all markets.
Which of the following primarily encourages innovation and technological advance in the competitive market system?
The government's tax code.
The process of "dollar voting".
The guiding function of consumer needs and preferences.
Profitable returns to innovative firms.
What is the most likely the result of human specialization or the division of labor?
It reduces output by dehumanizing workers
It reduces output by discouraging workers from learning a wide variety of tasks
It increases output by enabling workers to take advantage of differences in their skills
It increases output by allowing workers to each perform a wide variety of tasks
Joe has a limited monthly income of $10,000. He has to make tough choices on his monthly expenditure. If he spends $5,000 on a rental, then that is $5,000 he cannot spend on entertainment.
Which expenditure is the opportunity cost?
$5,000 he manages to save every month
$5,000 he spends on rental
$5,000 he cannot spend on entertainment
$10,000 he receives for his monthly income
What is the basic economic problem?
the value forgone from the next best alternative
the fact that the world has finite resources but humans have infinite wants
too many resources
the fact that the world has infinite resources but humans have finite wants
___________ is attained when maximum output is produced with given resources and technology.
Allocative Efficiency
Productive Efficiency
Technical Efficiency
Distributive Efficiency
_______________ occurs when no resources are wasted.
Allocative Efficiency
Productive Efficiency
Technical Efficiency
Distributive Efficiency
_______ is based on individual initiative and favours market mechanisms over government intervention.
Communism
Capitalism
Socialism
Fascism
What type of a science is economics?
Political
Social
Natural
Physical
What makes economics an art?
Positive statements
Normative statements
Practical use
None of the options
Positive statements are __________ statements
Objective
Subjective
Emotional
Value
What is true about normative statements?
They are objective
They are objective and testable
They are subjective and not testable
All of the options
Which of the following is an example for positive statement?
Petrol price should be decreased by the government
Government ought to provide tax reduction for poor
Price and demand is negatively related
Minimum wage should be increased
Choose the example for normative statement?
The unemployment rate of Oman is the lowest in GCC
India is the second largest populated country in the world
UAE is the richest country in the middle east
Saudi Arabia should provide Hajj subsidy for poor
A situation in which there are not enough resources to meet human wants and needs is referred to as
supply & demand
normative economics
scarcity
positive economics
Which of these best identifies the different between positive economics and normative economics?
Positive economics describes and explains economics as it is and normative economics describes and explains what economics should be, not what it is
Normative economics describes and explains economics as it is and positive economics describes and explains what economics should be, not what it is
There isn't any difference between the two, both terms can be used interchangable to describe and explain economics as it is
There isn't any difference between the two, both terms can be used interchangable to describe and explain what economics should be
Economics can observed as a whole or on an individual basis. The two terms that describe these observations are
macroeconomics and individual economics
government economics and individual economics
macroeconomics and microeconomics
microeconomics and macroeconomics
Which are correct about specialization?
It is the most efficient way to work.
It makes the price of products more expensive.
It allows people to like the products more.
It makes the price of products lower.
If a quota is put on the amount of goods that can be imported into the country, what could happen?
Shortages in products
Abundances in products
the condition that exists when someone can produce a good or service using fewer resources than someone else
Specialization
Absolute advantage
Barter
Money
the direct exchange of goods or services without the use of money; a typical feature of traditional economies
Capital
Money
Barter
Economy
the condition that exists when someone can produce a good or service at a lower opportunity cost than someone else
Comparative advatange
Specialization
Absolute advantage
Division of labor
the allocation of separate tasks to different people, based on the principle of specialization
Barter
Market economy
Voluntary Exchange
Division of labor
the characteristic of a society in which people rely on others for most of the goods and services they want
Barter
Law of Marginal Utility
Economic Interdependence
Utility
a generally accepted medium of exchange that can be traded for goods and services or used to pay debts
Credit card
Money
Barter
Trade
the development of skills or knowledge in one aspect of a job or field of interest
Comparative Advantage
Specialization
Absolute advantage
Positive economics
the act of willingly trading one item or service for another
Money
The Law of Trade
Voluntary Exchange
Supply and Demand
Which of the following would likely discourage specialization in an area?
a lack of good transportation
a large city with many people
a flat terrain with vegetation
an extremely dense population
An athletic person picks fruit, and their sociable friend sells the fruit. This is an example of
division of labor.
interdependence.
absolute advantage
Specialization
Which of the following is the best example of specialization?
Workers use their skills to be self-sufficient.
An online clothing outlet offers customized monograms
focus on local trade and economies
An assistant in a tailoring shop only replaces zippers
When countries specialize and trade, they
gain financial economic independence.
become economically interdependent.
automatically become very wealthy.
are better off, but severely inefficient
How does division labor increase productivity?
Workers will require minimum training
Workers can be paid a lower wage
Workers become experts at one job
Workers move from job to job
How does division of labor increase productivity?
Workers can be paid a lower wage
Workers can become experts at one task
Workers require minimum training
Workers can easily move from job to job
When does a person have a comparative advantage?
when they can produce a good using fewer resources
when they buy a good for less than its production cost
when they have a lower opportunity cost than others
when they have a higher opportunity cost than others
Which of the following could contribute to a nation having a comparative advantage over another nation?
lots of forest
better education
a warmer climate
All answers are correct
Which of the following is true of the American economy and trade?
Most Americans experience benefits from global trade.
Global trade increases the prices of non-American goods.
Most Americans are hurt economically by global trade.
Global trade causes most Americans to lose their jobs
What is the main advantage of moving jobs from one country to another?
Foreign workers are better because the demand higher wages
Jobs are generally moved for higher wages
Jobs are generally moved for lower wages
Usually jobs are moved to an area where there are higher health care costs
How does trade increase the variety and quantity of goods available?
Trade helps nations have larger absolute advantages.
Trade provides access to goods from around the globe.
Trade reduces the risks accompanying mass production.
Trade make nations want to complete with each other
Which of these is the main reason for national differences in comparative advantage in producing raw materials?
raise the comparative advantage for a producer
Differences in allocations of natural resources
eliminate competition for the production of goods.
Differences in cultural traditions
Resources are (a) . Human wants and needs are (b) .
Which of these is an example of SCARCITY?
School
Me giving everyone an A on the quiz.
Homes and shelter for everyone in Los Angeles.
Farms producing more than enough produce to feed everyone in the United States.
You take a part time job working 20 hours a week. Which of these would be the OPPORTUNITY COST?
The money from paychecks.
You can buy a PS5 with the money you've earned.
You're not giving anything up.
Spending time with friends.
Which one of these definitions best describe Opportunity Costs?
The cost of making one decision over another.
The cost for the opportunity to buy anything you want.
The opportunity that will cost you loads of money.
Alex is studying for his math quiz, but his favorite TV show just started. If he studies for the quiz, he will miss out on watching the show. Alex decides not to watch the show and continue studying for the quiz. What is the opportunity cost of his decision?
studying for a quiz
watching TV
eating dinner
taking a nap
Tom was shopping for a car. He has looked at a Ford, Honda, Toyota, and Dodge. After a lot of debate, he narrowed it down to either the Ford or the Honda. He selected the Ford, because he liked the interior a little better. What was his opportunity cost?
Ford
Honda
Toyota
Dodge
A _____________ is something you would like to have, but it is not required to live.
need
want
choice
You have to make a choice between playing outside or playing Xbox. You choose to go outside. Playing Xbox is your_____________.
opportunity cost
fun
economic choice
happy place
Economics is defined as...
The study of money and finance
The study of how society uses its limited resources
The study of the Wu-Tang song "Cash Rules Everything Around Me"
The study of how financial institutions lend and borrow money
I had to choose between ordering pizza or Chinese, since I didn't have enough money for both. I chose pizza. What was the opportunity cost of my decision?
The pizza I ordered
The Chinese food I didn't order
Both the pizza and Chinese food
None of the above
These are the things we desire to have.
Wants
Goals
Opportunity Costs
Emily is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Emily decides to get a job. Which of the following is the opportunity cost of her decision?
money
job
time
college
