WorksheetsEconomics Unit 1 Review 1
Total questions: 10
Worksheet time: 5mins
Which of the following is an example of a land resource?
Factory
Cow
Employee
Tractor
Which of the following illustrates an opportunity cost?
A. James has enough money to buy some socks and a book.
B. Alyssa does not have enough time to study for her test.
C. Amir only has time to study or to play basketball.
D. Lydia does not have enough money to buy a new shirt.
Venya and Kari own a flower shop that specializes in custom bouquets. Wanting to expand into selling potted plants, they create a production possibility chart to assess whether the potted plants are a good idea. Study their chart: How many potted plants should they be able to produce on Day 3?
25
30
50
75
Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends. In the end, he decides to take the promotion. What is Ricardo’s opportunity cost?
Losing extra time to spend with his friends.
Being able to use the extra money for summer football camp.
Losing the ability to spend any time with his friends.
Receiving another promotion in six months.
In a mixed economy, producers decide how to produce by
Checking government regulations first to make sure their production process doesn’t violate the law.
Figuring out the cheapest way to produce the product.
Decreeing that the product will be produced this or that way.
Producing it the way it has always been produced.
In a traditional economy, producers decide what to produce based on:
What they think they can sell.
What is permitted under government regulations.
Whatever they want because producers and the government are the same thing.
Whatever it was that their parents produced.
There may be a strong emphasis on hunting and farming.
Traditional
Command
Market
Mixed
The most common economic system in the world is a
Closed economy.
Command economy.
Mixed market economy.
Traditional economy.
In a competitive market, a furniture company decides to use cheaper materials to decrease production costs so it can sell at a lower price. This is an example of
following a federal regulation.
price competition.
reducing the risk for consumers.
creating a new or better product.
Innovation allows producers to
create goods that consumer want.
follow restrictions that the government imposes.
avoid competing with similar businesses.
offer warranties.
