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Economic Concepts

Total questions: 1

Worksheet time: 7mins

Name
Class
Date
1-10.
1.

What are the three basic economic questions that societies must answer?

a)

How to produce goods and services, who consumes goods and services, when to produce goods and services

b)

Where to produce goods and services, why produce goods and services, who sells goods and services

c)

What goods and services to produce, how to produce goods and services, who uses or consumes goods and services

d)

Which goods and services to produce, how to distribute goods and services, who produces goods and services

2.

What are the three factors of production?

a)

Natural resources, machinery, and labor

b)

Goods, services, and capital

c)

Money, resources, and labor

d)

Land, labor, and capital

3.

What is scarcity in economics?

a)

Having unlimited resources to meet limited wants

b)

Having limited resources to meet unlimited wants

c)

Having limited resources to meet limited wants

d)

Having unlimited resources to meet unlimited wants

4.

What is opportunity cost in economics?

a)

The cost of labor

b)

The cost of production

c)

The cost of the product

d)

The cost of what you have to give up

5.

What is demand in economics?

a)

The willingness to produce a good or service

b)

The cost of making one more unit of the product

c)

The price of a product

d)

The desire for a certain good or service

6.

What is supply in economics?

a)

The price of a product

b)

The willingness to produce a good or service

c)

The cost of making one more unit of the product

d)

The desire for a certain good or service

7.

What is the relationship between demand and price?

a)

If demand increases, price tends to rise

b)

If demand increases, price tends to fall

c)

If demand increases, price decreases

d)

If demand increases, price remains the same

8.

What is the role of producers in an economy?

a)

Produce natural resources

b)

Consume goods or services

c)

Make and sell goods or services

d)

Buy goods and services

9.

What is the incentive for producers to make and sell products or services?

a)

Desire to save money

b)

Desire to earn money

c)

Desire to produce goods

d)

Desire to consume goods

10.

What does marginal cost represent for a producer?

a)

The cost of making one more unit of the product

b)

The cost of labor

c)

The cost of resources

d)

The cost of the product