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WorksheetsEcon Fundamentals
Total questions: 76
Worksheet time: 38mins
Economics is the study of ______________
Money
How to get rich
Consequences and Punishments
Choices
Scarcity is best defined as:
Having an abundance of resources compared to unlimited wants.
The availability of resources without any restrictions.
The fundamental economic problem of limited resources and unlimited wants.
A situation where resources are distributed equally among all individuals.
Explain how natural disasters can affect scarcity.
Natural disasters can destroy or damage resources, leading to scarcity.
Natural disasters only affect resources in urban areas, not scarcity.
Natural disasters have no impact on scarcity.
Natural disasters can create more resources, reducing scarcity.
The economic resources needed to produce goods and services are
Factors of Production
Goods & Services
Labor
Land
The human time and effort that go into the making of products
Labor
Land
Human Capital
Production
Resources made and used by people to produce and distribute goods and services
Physical Capital
Labor
Human Capital
Opportunity cost refers to:
The cost of goods and services in an economy.
The value of the next best alternative given up when a choice is made.
The total amount of money available to an individual or a government.
The price of a resource in the market.
How is scarcity related to the concept of opportunity cost?
Scarcity has no impact on opportunity cost
Scarcity and opportunity cost are unrelated concepts
Opportunity cost is not influenced by scarcity
Scarcity forces individuals, businesses, and governments to make choices, and the concept of opportunity cost helps to evaluate those choices.
George earns a $250 bonus at his job for increasing his output by an additional 50% two weeks in a row. He makes a list of what he wants to buy with his bonus: 1: the latest model of Adidas athletic shoes; 2: Air Pods; 3: a new coat. He buys Adidas. What is his opportunity cost?
the Air Pods
the shoes
the coat
the cash
the public library
sales taxes
A farmer can use his land to grow either corn or wheat. If he chooses to grow corn, what is the opportunity cost?
The corn he grows
The wheat he could have grown
The cost of seeds
The labor required to grow corn
When Fresh Express Salads company decides to pick all of its lettuce mechanically, it directly answers the ___ question.
What to produce?
How to produce?
For whom to produce?
Where to produce?
What to produce?
How to produce?
For whom to produce?
Why to produce?
Goal that involves government allowing individuals and firms to choose how they generate & allocate their own financial resources
Economic Freedom
Economic Growth
Economic Efficiency
Economic Stability
Knowledge or skills of how to do something obtained through life experience, training, education, and/or other methods of learning
Physical Capital
Human Capital
Human Resources
Productive Resources
Added benefits or costs associated with an economic decision.
Marginal Utility
Externality
Incentive
Productive Utility
Economic system in which the 3 economic questions are answered by consumers and producers
Market Economy
Command Economy
Traditional Economy
Socialist Economy
Economic system where the 3 economic questions are answered by the government
Command Economy
Market Economy
Traditional Economy
Market Failure
An economy in which private enterprise exists in combination with government regulation and promotion.
Mixed Economy
Market Economy
Command Economy
Traditional Economy
Which economy is family/agricultural based?
traditional
market
mixed
command
Canada has a universal healthcare system, providing government-funded medical services to all citizens. However, the vibrant private sector helps to push an economy that is one of the world's most successful. Intense and frequent trade with the United States provides the country with great wealth.
These facts provide evidence that Canada has a
mixed economy
market economy
traditional economy
command economy
Which of these is a correct description for one of the ways in which a command economy differs from a market economy?
Market economies discourage free enterprise.
In a market economy, the government sets prices.
Command economies tend to have a higher per capita GDP
In a command economy, individuals have less economic freedom.
Which of the following is NOT one of the three basic questions of economics when looking at economic systems?
What goods should be produced ?
What is the price of the goods?
How should the goods be produced?
For whom are good produced?
Which is NOT a question all societies have to answer due to scarce resources?
When will products be produced?
How will products be produced?
What products will be produced?
Who will gets access to the resources and the products they produce?
Which is NOT a scarce resource?
Labor
Trees
Time
Candy
Why do entrepreneurs take risks?
to set their own work hours
to earn a profit for themselves
to provide G/S to their customers
to provide salaries and benefits to their employees
Which of the following IS NOT an economic factor of production -
Land
Labor
Capital
Entrepreneurship
Money
which of the following would be CAPITAL
a machine
a box of cereal
water
a new risky idea
Which of the following would be considered a SERVICE. Mark ALL that apply!
Haircut
Uber driver
iPhone
Cereal
A command economy is best defined as
An economic system with a central authority that makes major economic decisions
An economic system in which supply, demand, and the price system help people make economic decisions
An Economic system in which private citizens own and use the factors of production in order to generate profits.
An economic system that has some combination of traditional, command, and market activities.
A market economy is best defined as
An economic system with a central authority that makes major economic decisions
An economic system in which supply, demand, and the price system help people make economic decisions
An Economic system in which private citizens own and use the factors of production in order to generate profits.
An economic system that has some combination of traditional, command, and market activities.
Distributing a scarce resource
Allocation
Allocation Strategies
Productivity
Opportunity Cost
Goal of government to see GDP rise consistently, increasing the production of goods and service
over time.
Economic Growth
Economic Stability
Economic Productivity
Economic Stability
Economic goal of ensuring "fairness" within an economy
Economic Stability
Economic Equity
Economic Security
Economic Productivity
Protecting consumers, producers, and resource owners from risks that exist in society.
Economic Stability
Economic Security
Economic Freedom
Economic Growth
Economic goal intended to protect the purchasing power of the dollar and to keep from having highs and lows that are drastic
Economic Growth
Economic Stability
Economic Security
Economic Growth
Getting the most possible output out of each input
Efficiency
Economic Efficiency
Production
Growth
Added benefits or costs associated with an economic decision.
Marginal Utility
Externality
Incentive
Productive Utility
The cost associated with producing the next unit
Marginal Cost
Opportunity Cost
Expense Cost
Human Cost
What does microeconomics study?
Individual decisions and their implications for specific markets
The global economy
Monetary policy
Inflation
What does macroeconomics study?
The global economy, such as growth and the maintenance of economic growth
Individual decisions
The production of goods
The distribution of income
Things needed to produce something else (money, tools, factory, people)
marginal cost
cost
capital
Law of Supply
What someone pays (money)
opportunity cost
marginal cost
capital
cost
The opportunity cost of spending on the military are all of the following EXCEPT
more schools
improvements in wifi accessibility
longer summer daylight hours
lower cost public university education
Incentives often backfire because they rely on predicting how people will behave. For example, an incentive to pay teachers based on the number of students who get A's would likely result in
teachers giving all students A's
students working harder
teachers working harder
students dropping out of school
A producer asking the question, "Should we use glass or interchangeable plastic on the face of our new phone?" is a
microeconomic question
macroeconomic question
both a micro and macro economic question
none of the above
Lawmakers asking the question "Will cutting taxes end the current recession?" is a
microeconomic question
macroeconomic question
both a micro and macro economic question
none of the above
What is the main focus of the costs versus benefits principle?
The time spent
The resources saved
The benefits outweighing the costs
The costs outweighing the benefits
Which of the following is an example of trade?
You trade 10 cents for a pencil.
You give a pencil for free.
You borrow a pencil.
You find a pencil.
Any situation where making one choice means losing something else
Positive Incentives
Explicit Cost
Negative Incentives
Trade-offs
The process used to measure the benefits of making a decision.
Economics
Cost-Benefit Analysis
Positive Incentives
Scarcity
Punish people with money or a disadvantage for making certain choices and/or behaving a certain way.
Explicit Cost
Positive Incentives
Implicit Cost
Negative Incentives
Reward people with money or some type of advantage for making certain choices and/or behaving a certain way.
Explicit Cost
Positive Incentives
Implicit Cost
Negative Incentives
Which of the following is a reason why a company might choose non-monetary incentives over monetary ones?
Non-monetary incentives are always cheaper
Non-monetary incentives can foster a better company culture
Non-monetary incentives are easier to implement
Non-monetary incentives are more popular among employees
What is a potential long-term effect of over-reliance on monetary incentives?
Employees may become more loyal to the company
Employees may only focus on tasks that are incentivized
Employees may start working fewer hours
Employees may become more collaborative
Which of the following is an example of a monetary incentive that is tied to company performance?
Regular salary
Year-end bonus based on profits
Free parking space
Personal development training
What is a potential consequence of not carefully planning and implementing monetary incentives?
Employees may feel more satisfied with their jobs
It may lead to a decrease in overall company expenses
It can result in perceived unfairness and reduce morale
It can increase the company's reputation in the industry
Which answer best describes a perfect market structure?
a market structure in which a large number of firms all produce the same product
a market dominated by a single seller
one firm that blocks other firms from entering the market
market dominated by a few powerful sellers
Which answer best describes a monopoly?
a market structure in which a large number of firms all produce the same product
financial responsibility to pay for damages when people make mistakes
the person who decides how to combine land, labor, and capital to make new goods and services
a market dominated by a single seller
Which answer best describes an oligopoly?
organization of firms that agree to control production and prices
market dominated by a few powerful sellers
a business strategy that seeks to control more market share
identifying features that distinguish one company or product as different than others
Describes the structure a society uses to produce and distribute goods and services.
market
economic system
factor payments
planned economy
Keisha owns a hair supply store. At the end of the month, all the money she makes, minus her expenses is called what?
revenue
wages
security
profit
A lot of time _________ are monetary or based on money. It is a reward or fear of penalty that will encourage us to behave a certain way.
rewards
punishment
control
incentives
If Amazon is selling a phone charger for $24.99 and Walmart has that exact same charger for $17.99, this is a form of what?
competition
incentive
price competition
invisible hand
In a free market economy, what role does competition play?
It limits consumer choice
It drives innovation
It increases prices
It reduces efficiency
What is marginal benefit (MB)?
The additional benefit received from a choice
The additional cost of a choice
The total cost of a choice
The total satisfaction received from a choice
Which of the following best describes the concept of opportunity cost?
The amount of money spent on a purchase
The value of the next best alternative given up when a choice is made
The resources used to produce goods and services
The total benefits received from a decision
A local city council is deciding whether to build a new park or repair old roads with limited funds. This illustrates:
Unlimited wants, limited resources
Supply and demand
Specialization
Incentives
A farmer must decide whether to plant corn or soybeans this season. This reflects which fundamental question?
How should goods be distributed?
For whom should goods be produced?
What should be produced?
How should goods be produced?
Netflix and Disney+ compete by offering exclusive shows. This reflects:
Monopoly
Oligopoly
Perfect competition
Traditional economy
A small business owner adds new products during the holiday season to attract more customers and increase sales. The main motivator is:
Profit motivator
Not profit motivator
