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Worksheets1.1 and 1.2 Study Guide
Total questions: 17
Worksheet time: 1hrs 25mins
Because of scarcity, every decision involves a
Cost/benefit analysis
Trade-off
Marginal Cost
Marginal Benefit
An opportunity cost is
The best alternative that is given up when a decision is made
The worst alternative that is given up when a decision is made
A choice that is made when no alternative is very good
The cost of making decision related to producing goods
Which of the following is NOT an example of the four factors of production?
Money
Land
Physical Capital
Human Capital
What does the term “scarcity” refer to in economics?
The abundance of resources
The unlimited wants and needs of people
The availability of luxury goods
The efficient allocation of resources
What is the fundamental reason scarcity exists in every society?
Lack of resources
Excessive production
Technological advancement
Government intervention
Javier is trying to decide how to spend his Saturday morning. He can either spend it playing basketball at the park or studying for an upcoming economic test. If he chooses to study for his upcoming economic test, what is the opportunity cost he is facing?
Playing basketball at the park
Higher economics test score
Free time on Saturday
There is no tradeoff
If the marginal benefit of producing an additional unit of a product is $8 and the marginal cost $6, what should the producer do?
Produce the additional unit
Not produce the additional unit
Produce the unit only if the total cost is less than $8
Keep everything the same
What is the definition of marginal benefit?
The total benefit derived from a particular activity or decision
The additional benefit gained from consuming one more unit of a good or service
The cost incurred from producing one more unit of a good or service
I don’t know
What is the definition of marginal cost?
The total cost incurred in producing a certain quantity of goods
The additional cost incurred from producing one more unit of a good or service
The money I lose
The fixed cost of production for a given quantity of goods
Microeconomics is the study of a large economy as a whole?
True
False
Someone taking a course in Web design is affecting what factor of production?
Entrepreneurship
Human capital
Land
Physical capital
The government should provide healthcare to all citizens. Is this an example of a normative statement?
True
False
An Amazon worker represents which factor of production?
Entrepreneur
Capital
Labor
Land
Microeconomics is the study of small economic units such as individuals, firms, and markets?
True
False
Positive statements are based on facts and avoids value judgements?
True
False
What are the four factors of production?
Land, Equipment, Resources, Scarcity
Land, Labor, Capital, Entrepreneurship
Land, Labor, Captain, Entrepreneurship
We did not go over this concept
Is the main goal of an entrepreneur to obtain profit?
True
False
