wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

Mang. Econ C1

Total questions: 25

Worksheet time: 18mins

Name
Class
Date
1.

Scarcity is an economical concept where

a)

society will NEVER have enough resources to produce the goods and services to satisfy all people's desires

b)

society has enough resources to produce the goods and services to satisfy all people's needs

c)

society may have enough resources to produce the goods and services to meet all people's needs FOR NOW

d)

society needs to find other means of resources to produce the goods and services to meet all of people's desires

2.

Scarcity happens because

a)

people's desires are unlimited

b)

people's desires are subjective/not easily understandable and industries waste too much time and resources trying to justify them

c)

people did not use resources wisely

3.

Economics is​ the study of how ​a) ... manages ​b) ... to fulfill ​c) ...

a)

a) society

b) its scarce resources

b) people's unlimited needs

b)

a) an organization

b) its operational orders

c) consumers' desires

c)

a) individuals

b) resources

c) people's needs

4.

Trade-off means

a)

giving up one thing for another thing of equal value

b)

presenting new bonds on the primary bond markets

c)

trading a stock for a bond

5.

Highest-valued alternate option that must be given up to get something is

(a)  

6.

there are ... principles of economics

(a)  

7.

people make decisions by comparing costs and benefits is economically called

(a)  

8.

In economics it is always assumed that a)............... and b)

a)

a) rational behavior will lead to the best possibly market outcome

b) both consumers and producers behave

rationally

b)

a) both consumers and producers behave

rationally

b) rational behavior will lead to the best possibly market outcome

c)

a) rational people think at the margin

b) both consumers and producers behave

rationally

d)

a) rational behavior will lead to the best possibly market outcome

b) rational people think at the margin

e)

a) both consumers and producers behave

rationally

b) rational people think at the margin

9.

Society utilizing its scarce resources to their best potential is called (a) ... while distributing the advantages from the utilization fairly among members of society is called​ ​ (b) ...

a)

a) efficiency

b) equity

b)

a) equity

b) efficiency

10.

small adjustments to a plan is called:

(a)  

11.

The invisible hand is a theory developed by

(a)  

12.

The invisible hand theory said "when people act in self-interest, they benefit society as a whole" therefore its lead to good allocation/distribution of resources

a)

Correct

b)

Incorrect

13.

Trade makes everyone better-off because

a)

allows parties to specialize in their expertise

b)

allows greater varieties of goods/services at lower costs

c)

lowers costs of living and increases standards of living

d)

allows exploitation of other countries' economies

e)

twerk

14.

the government cannot interfere even if the allocation of resources is not sufficient enough to promote efficiency and equity. this is the 7th economic principle called "governments cannot improve market outcomes"

a)

Correct

b)

Incorrect

15.

The 7th economic principle will come into effect when ... happens, which is the inability to allocate resources optimally.

(a)  

16.

impact of a firm's actions on a third party unrelated to its goods/services is called

(a)  

17.

A party that has the ability to singlehandedly influence market prices has:

(a)  

18.

A market economy is

an economy that allocates resources through (a)   of many firms

and households.

19.

the 9th economic principle is growth of money leads to ...

(a)  

20.

Markets are usually a good way to organize economic activity because

a)

market economy distributes resources through decentralized decisions of firms and households

b)

monopoly is not guaranteed, therefore no firms can take absolute advantage of the industry

c)

they provide categories for easier inspections

21.

The 1st economic principle is

a)

People face trade-offs

b)

Society faces a short-run tradeoff between Inflation and unemployment

c)

Trade can make everyone better off

d)

Rational people think at the marginal cost and marginal revenue

e)
  1. Growth of money leads to inflation

22.

"Rational people think at the margin" is the ... economic principle

a)

2nd

b)

3rd

c)

5th

d)

7th

23.

The 2nd economic principle is

a)

The cost of something is what you give up getting it

b)

A country's standard of living depends on its ability to produce goods and services

c)

People respond to incentives

d)

People face trade-offs

e)

Markets are usually a good way to organize economic activity

24.

A country's ... depends on its ability to produce goods and services

(a)  

25.

"Society faces a short-run tradeoff between Inflation and unemployment" is the ... economic principle

a)

first

b)

last

c)

seventh

d)

not a principle

e)

sixth