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Woolf Economic Chapter 1

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

Which two basic economic principles create the need for choices?

a)

Which two basic economic principles create the need for choices?

b)

Unlimited wants and limited resources

c)

Subjective value and utility

d)

Utility and opportunity

2.

Conservation of natural resources primarily shows which economic concept?

a)

Microeconomics

b)

Utility

c)

Public Goods

d)

Scarcity

3.

Explain the Nature of the Economic problem

a)

When there is too much money in a country and the value of money goes down

b)

When the poverty levels in a country reduce tourism, resulting in higher taxes

c)

When a country is in too much debt

d)

It is when unlimited wants exceeds limited resources which leads to the problem of choice which results in opportunity cost. There are 3 questions which every society has to answer

What to produce? ,how to produce? For whom to produce?

4.

What biblical concept refers to a person's responsibility to make proper choices with his resources?

a)

Stewardship

b)

Contentment

c)

Utility

d)

Public good

5.

What is the economic cost of a good or service?

a)

The price charged for it

b)

The regret a consumer feels after choosing it

c)

The value people place on it

d)

The cost of making and marketing it

6.

Which of the following is an economic service rather than an economic good?

a)

Computer monitor

b)

Sports Car

c)

Haircut

d)

Cell Phone

7.

What principle does the broken windows story illustrate?

a)

Scarcity

b)

Hidden costs

c)

Stewardship

d)

Cost of labor

8.

What approach to economic study focuses on value judgments?

a)

Microeconomics

b)

Positive economics

c)

Macroeconomics

d)

Normative economics

9.
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 
10.
What will probably happen if something people want to buy is scarce?
a)
The price will go up.
b)
The price will go down.
c)
You will be able to get it for free.
11.

Which of the following best fits into the realm of macroeconomics?

a)

Rising unemployment

b)

A business loan

c)

Research and development

d)

Family Budget

12.

Goods that a consumer must pay to have removed are called _____ goods.

a)

consumer

b)

free

c)

economic

d)

nuisance

13.

Goods that cost nothing are called _____ goods.

a)

nuisance

b)

consumer

c)

free

d)

economic

14.

The worth of the good because of its nature is called _____ value.

a)

extrinsic

b)

intrinsic

c)

natural

d)

economic

15.

What is subjective value?

a)

Worth of something based on its nature

b)

The cost of the materials required to make it

c)

Worth of something based on its usefulness to a buyer

d)

The price tag at the store

16.

The satisfaction that someone feels from choosing an option is called _____ benefit.

a)

opportunity

b)

economic

c)

subjective

d)

scarcity

17.

What do economists call the regret a person feels for not choosing a particular option?

a)

Opportunity benefit

b)

Economic cost

c)

Subjective cost

d)

Opportunity cost

18.

What is an economist's term for the usefulness of a good or service?

a)

Scarcity

b)

Utility

c)

Value

d)

Cost

19.

Which type of economics deals with economic choices made by individuals?

a)

Microeconomics

b)

Macroeconomics

c)

Finance economics

d)

Business economics

20.

Whicy type of economics deals with large-scale economic choices and issues?

a)

Microeconomics

b)

Macroeconomics

c)

Finance economics

d)

Business economics

21.

Carl Menger is known as the Father of _____ Economics.

a)

German

b)

French

c)

British

d)

Austrian

22.

According to Carl Menger, what determines the value of an object?

a)

The quality of the raw materials

b)

The utility for the user

c)

The labor of the producer

d)

The public good accomplished