WorksheetsEcon Vocabulary Quiz #3
Total questions: 25
Worksheet time: 14mins
What is scarcity in economic terms?
The unlimited availability of resources
Having unlimited wants and limited resources.
The abundance of goods and services
The surplus of labor
Which of the following is an example of an incentive in economics?
A natural disaster
A tax rebate for purchasing energy-efficient appliances
A decrease in population
A change in weather patterns
What are the three basic economic questions every society must answer?
What to produce, how to produce, and for whom to produce
How to save, how to invest, and how to spend
What to consume, how to consume, and when to consume
How to trade, how to barter, and how to sell
In a command economic system, who primarily makes the economic decisions?
Individual consumers
Private businesses
The government
International organizations
How does a market economic system primarily allocate resources?
Through government planning
By random selection
Through supply and demand
By traditional methods
Identify the four factors of production.
Land, labor, capital, and entrepreneurship
Money, time, energy, and effort
Goods, services, technology, and innovation
Resources, products, markets, and consumers
What is opportunity cost?
The total cost of all possible choices
The cost of the next best alternative foregone
The cost of producing one more unit of a good
The cost of all resources used in production
How is equilibrium price determined in a market?
When supply exceeds demand
When demand exceeds supply
When supply equals demand
When prices are set by the government
What is the primary difference between imports and exports?
Imports are goods sold abroad, exports are goods bought from abroad
Imports are goods bought from abroad, exports are goods sold abroad
Imports are services provided domestically, exports are services provided abroad
Imports are goods produced domestically, exports are goods produced abroad
What does GDP (Gross Domestic Product) measure?
The total value of all goods and services produced in a country's borders
The total amount of money in circulation
The total number of jobs in a country
The total amount of exports and imports
What does the Consumer Price Index (CPI) indicate?
The average change in prices paid by consumers for goods and services (inflation)
The total amount of goods produced in an economy
The average income of consumers
The total number of consumers in an economy
Which type of unemployment is caused by economic downturns?
Frictional unemployment
Structural unemployment
Seasonal unemployment
Cyclical unemployment
What characterizes structural unemployment?
It occurs when workers are between jobs
A mismatch between skills job seekers have and skills needed in the workforce.
It is due to seasonal variations in demand
It is caused by economic recessions
Which type of business organization is owned and operated by a single individual?
Corporation
Partnership
Sole proprietorship
Cooperative
What is a monopoly in economic terms?
A market structure with many sellers and buyers
A market structure with a single seller and no close substitutes
A market structure with a few large firms dominating the market
A market structure with free entry and exit
Partnerships are owned by
An example of Seasonal Unemployment would be
Lawn mowing during off-season periods.
Corporations are owned by
producers
computers
An advantage of being a sole proprietor would be
selling stocks
Complete control and keeping all profits.
Which of the following would be an example of a Monopoly?
Lydia brought a salad for lunch today. Michelle is ordering pizza and asks Lydia is she would like to order. Lydia decides to eat her salad, what is her opportunity cost?
salad
pizza
Your neighbor offers you $10 to water her plants. Is this a positive or negative economic incentive?
positive
negative
When supply and demand levels are graphed together, the perfect price is where the curves cross, also known as the ___
cost of production
factors of production
command economy
equilibrium price
Is this counted in the GDP of the US?
Cars made by a Japanese company in California.
Yes
No
Is a used car bought in Tallapoosa counted on the US GDP?
