WorksheetsEcon Chapter 1 Test
Total questions: 20
Worksheet time: 20mins
Name
Class
Date
1.
Which is an example of scarcity?
a)
A fan cannot go to a concert because there are not enough tickets.
b)
A fan goes to a concert because there are enough tickets for everyone.
c)
A fan cannot go to a concert because he has to do homework instead.
d)
A fan goes to a concert instead of doing homework.
2.
Food is an example of
a)
a durable consumer good.
b)
a nondurable consumer good.
c)
a durable capital good.
d)
a nondurable capital good.
3.
A lawyer does work that could be classified as
a)
a consumer good.
b)
a transferable good.
c)
a service.
d)
a basic need.
4.
What two economic factors determine the value of something?
a)
Durability and service
b)
Capital and scarcity
c)
Scarcity and utility
d)
Need and want
5.
A car is an example of a
a)
durable good.
b)
nondurable good.
c)
capital good.
d)
mechanical good.
6.
Which answer explains the phrase "There Is No Such Thing As A Free Lunch"?
a)
A business that offers a deal will pass on the cost in other ways.
b)
Businesses rarely offer free items to customers.
c)
A business always expects its customers to pay for products and services.
d)
Businesses often ask customers to pay for others' lunches
7.
What questions do all societies have to answer economically?
a)
What, how, and for whom to predict economic outcomes
b)
How to measure their gross domestic product
c)
Why and how to increase scarcity
d)
What, how, and for whom to produce
8.
A good that is intended to last more than 3 years with regular use
a)
non-durable good
b)
super good
c)
consumer good
d)
durable good
9.
Which of the following statements best describes the purpose of the production possibilities curve?
a)
It predicts the future production of a nation.
b)
It identifies trends in production.
c)
It shows which products are most profitable.
d)
It identifies all possible combinations of goods and services an economy can produce.
10.
Which of the following descriptions best explains the meaning of opportunity cost?
a)
the initial cost of starting a new business
b)
the cost of business failure
c)
the cost of choosing one alternative over another
d)
the risk associated with producing a new item
11.
Which of the factors of production involves taking risks and combining resources to produce a good or service?
a)
land
b)
capital
c)
labor
d)
entrepreneurs
12.
When deciding how to use resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria. These are called
a)
trade-offs.
b)
opportunities.
c)
resource frontiers.
d)
priorities.
13.
Check all the boxes that identify the Factors of Production (Must get all 4 for correct answer)
a)
Labor
b)
Capital
c)
Land
d)
Entrepreneurship
e)
Scarcity
14.
Tools, Buildings, Machinery, factories used in production to build other things are known as?
a)
Capital Goods
b)
Super Goods
c)
Excellent Goods
d)
Labor Goods
15.
The benefits of making a particular choice
a)
opportunity cost
b)
opportunity benefit
c)
cost-benefit analysis
d)
trade-off
16.
Which of the following is NOT the right of a consumer?
a)
The right to safety
b)
The right to be informed
c)
The right to choose
d)
The right to have everything free of cost
17.
Productivity increases when
a)
more is produced with the same amount of resources.
b)
less is produced with the same amount of resources.
c)
the same amount is produced with the same amount of resources.
d)
nothing is produced with the same amount of resources.
18.
The sum of all the skills, ability, health and motivation of people in the labor force
a)
Productivity
b)
Human Capital
c)
Specialization
d)
Division of Labor
19.
Organizing work so that each worker or worker group completes a separate part of the overall task.
a)
Division of Labor
b)
Labor Chain
c)
Working for a Living
d)
Entrepreneurship
20.
When a nation’s total output increases over time, the nation is experiencing
a)
a decrease in gross domestic product.
b)
economic growth.
c)
economic interdependence.
d)
an expansion of the possibilities curve.
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