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Introduction to Economics

Total questions: 15

Worksheet time: 13mins

Name
Class
Date
1.
The situation in which unlimited wants exceed the limited resources available to fulfill those wants.
a)
Market 
b)
Tradeoff
c)
Scarcity 
d)
Equity 
2.
The highest-valued alternative that must be given up to engage in an activity.
a)
Scarcity 
b)
Factors of Production 
c)
Innovation
d)
Opportunity Cost 
3.

The study of the economy as a whole...

a)

Macroeconomics

b)

Microeconomics

c)

Economics

d)

Supply and Demand

4.

The study of behavior of individual households, firms, and governments...

a)

Microeconomics

b)

Macroeconomics

c)

Economics

d)

Personal Finance

5.

Which type of economic system has the highest level of government control?

a)

traditional economy

b)

market economy

c)

command economy

d)

mixed economy

6.

Economy in which people make economic decisions based on their group's customs and values. Not common today.

a)

Traditional Economy

b)

Market Economy

c)

Command Economy

d)

Mixed Economy

7.

Individual consumers and producers make economic decisions based on the principles of freedom, competition, and profit.

a)

Traditional Economy

b)

Market Economy

c)

Command Economy

d)

Mixed Economy

8.

TINSTAFL

a)

There is no such thing as free lunch

b)

There is no such thing as foreign loans

c)

There is no such thing as freedom liabilities

d)

There is no such thing as fiat legislation

9.

Economics is the study of:

a)

How people make money through business

b)

How people start businesses

c)

How people use scarce resources to satisfy their wants

d)

How people divide objects into land, labor or capital

10.

How do economic systems differ?

a)

By the types of goods and services produced

b)

By the level of government control

c)

By the amount of money people make

d)

By the number of consumers in the market

11.

What is profit?

a)

The money a company has left after subtracting its costs from its sales

b)

The money earned by selling goods and services

c)

The cost of making one more unit of a product

d)

The price paid for using someone else's money

12.

What is competition?

a)

The desire to earn money

b)

The struggle among producers for consumers' money

c)

The act of concentrating on a limited number of goods and activities

d)

The struggle among consumers for limited resources

13.
 The difference between a good and a service is that:
a)
Goods are available in unlimited quantaties and services are not 
b)
Goods are tangible and services are not 
c)
Services are available in unlimited quantaties and goods are not 
d)
goods help satisfy unlimited wants and services do not
14.
What is the major difference between scarcity and a shortage? 
a)
They are really the same
b)
Shortages always exist and scarcity is temporary 
c)
Shortages are temporary and scarcity always exist. 
d)
Scarcity is limited and shortages are unlimited 
15.
What does Specialization mean?
a)
Something oe person does for someone else.
b)
Not being able to have everything that you want because of limited resources.
c)
Having more than you want, or need.
d)
When people work in jobs where they produce a few special goods, or services.