WorksheetsReview Unit 2 Concept 1
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
The study of __________________ traditionally assumes that individuals, businesses, and governments behave rationally when faced with choices.
a)
finances
b)
supply and demand
c)
goods and services
d)
economics
2.
In economic terms, a ____________ _______________ is made when the marginal benefit of an action is greater than or equal to the marginal cost.
a)
opportunity cost
b)
rational decision
c)
positive incentive
d)
negative incentive
3.
________________ in economics means per unit, incremental, or small changes.
a)
marginal
b)
utility
c)
incentive
d)
invisible hand
4.
________________ is the total satisfaction gained from consuming/using a good or service.
a)
marginal
b)
utility
c)
incentive
d)
invisible hand
5.
The interaction of market forces, in which buyers and sellers are motivated by self-interest, is called the ______________.
a)
marginal
b)
utility
c)
incentive
d)
invisible hand
6.
_____________ _______________ is the change in total benefit received from one more unit; the change in total cost paid for one more unit is the ________________ __________.
a)
marginal cost; marginal benefit
b)
opportunity cost; marginal benefit
c)
marginal benefit; opportunity cost
d)
marginal benefit; marginal cost
7.
This is the point where the total profit is maximized, and the person is getting the most out of the situation at the given moment....
a)
marginal benefit
b)
opportunity cost
c)
profit-maximizing rule
d)
Law of Diminishing Marginal Utility
8.
An ________________ motivates individuals, businesses, and governments to undertake an action or avoid an action.
a)
utility
b)
invisible hand
c)
incentive
d)
profit
9.
Incentives are _______________ when the option chosen is associated with a perceived benefit or gain.
a)
negative
b)
rational
c)
marginal
d)
positive
10.
Incentives are _______________ when the option is avoided due to association with a high cost.
a)
negative
b)
rational
c)
marginal
d)
positive
11.
Which of the following incentives are positive?
a)
late fee for returning a book
b)
buy one, get one free
c)
$1000 rebate on a new car
d)
$25 speeding ticket
12.
Which of the following incentives are negative?
a)
late fee for returning a book
b)
buy one, get one free
c)
$1000 rebate on a new car
d)
$25 speeding ticket
13.
The three basic economic questions are answered by a central authority or government in a ________________ economic system.
a)
market
b)
command
c)
mixed
14.
The three basic economic questions are determined by the interactions of buyers and sellers in a ________________ economic system.
a)
market
b)
command
c)
mixed
15.
The three basic economic questions in a ____________ economic system are determined by both a central authority or government and the interactions of buyers and sellers.
a)
market
b)
command
c)
mixed
16.
Most economies in the world are _____________.
a)
market
b)
command
c)
mixed
17.
Economics assumes that people are profit-maximizers who act in their own self-interest to get the most out of a given situation.
a)
True
b)
False
18.
Individuals, businesses, and governments do not respond to positive and negative incentives in predictable ways.
a)
True
b)
False
19.
The term economic system refers to the way a country organizes economic activity and makes economic decisions.
a)
True
b)
False
20.
Who is known as the founder of modern economics?
(a)
100 %
