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Economics Ch. 1-3 Study Guide

Total questions: 16

Worksheet time: 9mins

Name
Class
Date
1.

Describe the difference between a want and a need:

a)

want: something you do need to survive (ex: TV or phone)

b)

need: something you need to survive (ex: food, clothing, shelter)

c)

want and need

d)

none of the above

2.

What are the four factors of production?

a)

land and labor

b)

capital and enterpreneurship

c)

all of the above

d)

none of the above

3.

What is a trade off?

a)

the alternative people give up when making a choice

b)

trading goods

c)

decision making

d)

sacrificing something that is yours

4.

How would you describe a want?

a)

People have unlimited wants that are ever changing

b)

Food

c)

Shelter

d)

Money

5.

A producer who makes goods or provides services is callled a what?

a)

Maker

b)

Producer

c)

Merchant

d)

Sales person

6.

To be successful entrepreneur requires a willingness to take…?

a)

Safe routes

b)

Challenges

c)

Risks

d)

Plans

7.

The way society uses scarce resources to satisfy its people’s unlimited wants is called an economic…

a)

Plan

b)

Government

c)

Class

d)

System

8.

Producers and consumers drive the economy of a…?

a)

Market economic system

b)

Government

c)

System

d)

People’s decisions

9.

Government officials deciding the distribution of all resources is a feature of a...?

a)

Command economy

b)

Demanding economy

c)

Planned economy

d)

Unorganized economy

10.

With voluntary exchange, a buyer and seller agree to do business together...?

a)

Mutual benefit for others

b)

For the mutual benefit of both

c)

Mutual benefit for oneself

d)

None of the above

11.

In a market economy, the real power in the market place is held by the...

a)

Consumer

b)

Producer

c)

Crafter

d)

President

12.

A society that has public schools and ownership of private property has elements of both…?

a)

All of the above

b)

Command systems

c)

Economic systems

d)

None of the above

13.

A market failure occurs when people who are not part of a marketplace interaction...?

a)

Benefit from others

b)

Benefit from oneself

c)

Benefit from it

d)

None of the above

14.

Public goods are funded by…?

a)

Taxes collected by the government

b)

Taxes collected from the people

c)

None of the above

d)

Both

15.

A person who does not pay for a service but benefits from it is called a(n)...?

a)

The people

b)

Tax collecter

c)

Free rider

d)

None of the above

16.

Government programs that protect people from economic hardship are called...

a)

Security

b)

Public safety nets

c)

Military

d)

None of the above