WorksheetsUnit 1: Intro to Economics
Total questions: 19
Worksheet time: 10mins
What is choice?
Something you can't live without
Want
Need
Desire
Value of Work
What is one of the functions of money?
To look good
Units of discounting
Medium of exchange
It holds no value
Which is an example of rational self-interest (there are two correct answers)?
Choosing a TV when budgeting because you enjoy watching TV.
Getting coffee once a week because you want a treat.
Needing air to breath.
Having to wear shoes to school.
Why was money used?
To look pretty
Using barley and buttons was getting old
Avoid the limitations of bartering
So we can print and make more of it
Many economist think that pure competition is the best market structure for
(a)
In the United States, which form of market does the government attempt to control?
oligopoly
monopoly
pure competition
money being used
What is the primary purpose of a market?
To create scarcity
To facilitate the exchange of goods and services
To increase prices
To eliminate competition
Which of the following is a characteristic of a monopoly?
Many sellers
Single seller
Free entry and exit
Perfect information
What is opportunity cost?
The cost of producing one more unit
The value of the next best alternative foregone
The total cost of production
The cost of all resources used
Which of the following best describes a need?
Something essential for survival
Something you would like to have
Something you can live without
Something that is a luxury
What is the main difference between a market and barter system?
Markets use money as a medium of exchange, while barter relies on direct exchange of goods
Markets do not involve buyers
Barter systems use only services
Barter systems have more sellers
Which of the following is an example of opportunity cost?
Paying for groceries with cash
Choosing to study instead of going to a movie
Buying a product on sale
Saving money in a bank
Which of the following is an example of a want?
Food and water
Designer shoes
Basic shelter
Clean air
What does scarcity force individuals and societies to do?
Make choices about resource allocation
Increase production endlessly
Eliminate all wants
Ignore their needs
Which of the following best describes a market economy?
Goods and services are exchanged based on supply and demand
Decisions are made by a central authority
There is no use of money
All resources are unlimited
