WorksheetsUnit 1 - Economics Practice Quiz
Total questions: 20
Worksheet time: 10mins
Economics is the study of...
how individuals make decisions
incentives and decision making.
how governments create policies
What are "Incentives"?
Positive or negative consequences that can influence decision making.
The costs of producing goods and services
The resources available to individuals and businesses
What does "Rationality" mean in the context of economics?
Making decisions based on emotions and personal beliefs
Making decisions based on logical reasoning and self-interest
Making decisions based on social norms and cultural values
What does "Irrationality" mean in the context of economics?
Making decisions based on logical reasoning and self-interest
Making decisions based on emotions and personal beliefs
Making decisions based on social norms and cultural values
What is the concept of "Expected Value"?
The total value of all goods and services produced in a country in a given year
The ability to produce a greater quantity of a good or service with the same amount of resources
The value of the Potential Reward x Probability of Success.
What does it mean for a resource to be "Scarce"?
There is an unlimited supply of the resource
The resource is in limited supply relative to its demand
The resource is available in abundance
What does it mean to "Allocate" resources?
To use resources efficiently to meet people's wants and needs
To distribute resources equally among individuals
To save resources for future use
What is "Demand" in economics?
The quantity of a good or service that consumers are willing and able to buy at a given price
The quantity of a good or service that producers are willing and able to sell at a given price
The price at which buyers and sellers agree to trade a good or service
What is "Supply" in economics?
The quantity of a good or service that consumers are willing and able to buy at a given price
The quantity of a good or service that producers are willing and able to sell at a given price
The price at which buyers and sellers agree to trade a good or service
What is "Production" in economics?
The process of consuming goods and services
The process of allocating resources
The process of creating goods and services
What are the two types of incentives in Economics?
Money and beauty
Money and reputation
Positive and negative
How do economists measure risk and reward?
by using expected value
by comparing positive and negative incentives
by measuring rationality
True or False: The biggest assumption that economists make is that people are rational.
True
False
What is a table showing the relationship between price and Qd (quantity demanded)?
Market schedule
Demand schedule
Demand curve
Princes ensure that
supply is bigger than demand
demand is bigger than supply
supply = demand
Substitutes, complements and income
shift suppy
shift demand
shift the equalibrium
Equilibrium is the point where
Qd = Qs
Qs > Qd
Qs < Qd
The demand curves slope
upwards
downwards
in a flat line
What are the two axes of the Supply and Demand graph?
Units and prices
quantity and units
quantity and price
If the price of a complement rises, the demand curve will shift
left
right
