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WorksheetsUnit 2: Exploring Economics Exam
Total questions: 55
Worksheet time: 53mins
What is scarcity?
The ability to produce infinite resources
The lack of desire for goods and services
Not having enough resources to satisfy all wants and needs
The abundance of goods
What does supply refer to in economics?
The total demand for goods
The amount of goods or services producers are willing to sell
The value of imported goods
The consumer's desire for a product
How does demand affect prices?
Prices remain constant regardless of demand
Prices decrease as demand increases
Prices increase as demand increases
Demand does not influence prices
What is an incentive?
A punishment for not completing tasks
A benefit that motivates people to act
A tax on luxury goods
A type of economic system
What is inflation?
A decrease in the overall price level of goods
An increase in the overall price level of goods and services
The stabilization of market prices
The reduction of consumer purchasing power
What is opportunity cost?
The price of a product
The time spent on a particular activity
The value of the next best alternative given up
The cost of a luxury item
Which of the following is a need?
A smartphone
A vacation
Food and water
Designer clothes
Which is an example of a want?
Shelter
Medicine
A new video game
Clean air
What is the study of economics about?
It focuses solely on the production of goods
It analyzes how resources are used to meet needs and wants
It is concerned with the political structure of a country
It deals only with the stock market
How do supply and demand work together?
They always increase prices
They determine the price of goods and services
They have no impact on market prices
They only affect luxury items
What is an economy?
A specific brand of goods
The way goods and services are produced and consumed in a country
A system that eliminates scarcity
A market with infinite resources
What do economists do?
Create new resources
Study economics to understand economies
Produce goods and services
Control all market prices
Which of the following is a good?
A haircut
A car repair
A smartphone
A music lesson
Which of the following is a service?
A textbook
A haircut
A toy
A laptop
What is a luxury?
An essential item for survival
Something expensive but not necessary
A mandatory government tax
An item in high demand
How does an increase in supply affect prices?
Prices increase
Prices remain unchanged
Prices decrease
Prices are determined by demand
What happens when there is a scarcity of a product?
The product becomes less desirable
The price of the product decreases
The price of the product increases
The product is given away for free
Which of the following best describes a need?
Jewelry
A vacation
A house
A smartphone
What role do incentives play in economics?
They discourage market activity
They have no effect on consumer behavior
They motivate people to make certain choices
They always lead to inflation
What is an example of opportunity cost?
Buying groceries instead of a new video game
Saving money without making any purchases
Receiving a gift without any trade-off
Producing goods at a lower cost
Which of the following is an example of scarcity?
Unlimited money
Time limited to 24 hours a day
Infinite resources
Endless supply of goods
What happens to the price of goods when supply increases?
Price goes up
Price goes down
Price remains the same
Price fluctuates randomly
What is demand?
The amount of goods producers are willing to sell
How much of a good or service consumers want
The surplus of goods
The lack of resources
Explain how supply and demand work together to determine prices.
They work independently to set prices
Supply and demand together determine prices based on their levels
Only demand affects prices
Only supply affects prices
What is an incentive in economic terms?
A punishment for not doing something
A reward or benefit that motivates people to do something
A tax on goods
A decrease in supply
Describe the effect of inflation on the value of money.
Increases the value of money
Reduces the value of money
Has no effect on the value of money
Stabilizes the value of money
If the demand for a product increases, what is likely to happen to its price?
The price will decrease
The price will increase
The price will remain the same
The price will fluctuate randomly
How does scarcity influence economic decision-making?
It has no influence on decision-making
It forces choices due to limited resources
It leads to unlimited choices
It simplifies decision-making
What is the relationship between supply and price?
As supply increases, price increases
As supply increases, price decreases
Supply and price are unrelated
Supply always equals price
What is the effect of scarcity on opportunity cost?
Scarcity eliminates opportunity cost
Scarcity creates opportunity cost as choosing one option means forgoing another
Scarcity and opportunity cost are unrelated
Scarcity reduces opportunity cost
What is the study of how people use resources to meet their needs and wants called?
Economy
Economics
Economic System
Market Economy
Which of the following best describes a luxury?
Essential for survival
Expensive but not necessary
A basic need
A government service
How do economists contribute to understanding economies?
By creating goods
By analyzing data
By selling services
By controlling prices
What is the primary focus of an economic system?
To create new technologies
To organize how goods and services are produced, distributed, and consumed
To increase population
To reduce taxes
Which of the following is an example of a tangible item?
Haircut
Car repair
Food
Tutoring
Analyze the impact of choosing to buy a video game over new shoes. What is the opportunity cost in this scenario?
The enjoyment from the video game
The money spent on the video game
The new shoes you did not buy
The time spent playing the game
Which of the following is a need rather than a want?
Latest smartphone model
Basic healthcare
Designer clothes
Luxury car
Jay earns a $400 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
Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?
fishing with a friend
going to a concert
Andrea has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?
a trip to the beach
a trip to the mountains
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
Josh's birthday is coming up. He wants a pair of beats headphones and a PS4. His Mom says he can only get one item. He chooses the PS4, what is his opportunity cost?
beats headphones
PS4
Jaleigh is going shopping with her Aunt and has $20. She wants to buy a pair of jeans and a shirt. The jeans are $15 and the shirt is $20. Jaleigh decides to buy the jeans, what is her opportunity cost?
jeans
shirt
Which of these are examples of services?
auto mechanic
doctor
waiter
grapes
Which of the following is an example of a good?
Haircut
Car repair
Toy
Tutoring
What is the study of how people use resources to meet their needs and wants called?
Sociology
Economics
Psychology
Anthropology
What is the term for the buying goods from another country?
Import
Shipping
Receiving
Export
What is the term for the selling goods from another country?
Delivering Goods
Export
Supply
Scarcity
What factor determines an economic decision?
the benefit should outweigh the cost
a purchase should be made only for needs not wants
credit purchasing promotes financial freedom
whether or not the item can be acquired
Who controls the factors of production in a command economy?
government
classes
individuals
oligarchs
All economic decisions are made by buyers (consumers) and sellers (producers).
Command Economy
Market Economy
Traditional Economy
Mixed Economy
