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Intro to Economics Sections 1-3

Total questions: 33

Worksheet time: 19mins

Name
Class
Date
1.

Which of the following best explains a mixed economy?

a)

Private ownership of the factors of production and regulation of businesses by government

b)

Market exchanges answer all three of the big economic questions

c)

Family customs and traditions determine what and how to produce a good

d)

Government answers all three of the big economic questions

2.

What are the resources called that are needed to produce a good or service?

a)

Goods and services.

b)

Needs and wants.

c)

Factors of production.

d)

All of the above.

3.

What are natural resources?

a)

Animals

b)

Things from nature (not man-made)

c)

Tree

d)

All of the above

4.

What is entrepreneurship?

a)

Shipping of products and services.

b)

Starting or improving a business.

c)

Improving needs and wants.

d)

All of the above.

5.

__________ An example of a natural resource is a cell phone.

a)

True

b)

False

6.

Which one of the four factors of production does the picture show?

a)

Natural Resources

b)

Labor

c)

Capital

d)

Entrepreneur

7.
Forests are examples of...
a)
Land
b)
Labor
c)
Entrepreneurs
d)
Capital
8.
A herd of cattle is an example of ...
a)
Land
b)
Labor
c)
Entrepreneur
d)
Capital
9.

 

An Entrepreneur

a)

is a NASCAR driver

b)

is a teacher

c)

works at Chick Fil A

d)

owns his/her own company

10.

Labor refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

11.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

12.

Land includes...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

the tools, equipment, and factories used in production of goods and services

c)

people with all their efforts and abilities

d)

individuals who start a new business or bring a product to market.

13.
An individual's knowledge or skills that make production of a good/service more efficient
a)
Human Capital
b)
Physical Capital
c)
Investment Capital
d)
Enterprise Capital
14.
Any technology/machinery involved in the production process:
a)
Human Capital
b)
Physical Capital
c)
Investment Capital
d)
Enterprise Capital
15.

The additional costs or the use/consumption of an G or S

a)

Marginal benefit

b)

Marginal cost

c)

Negative Utility

16.

Marginal revenue is:

a)

the revenue received from sales

b)

the additional cost of producing an additional unit of output

c)

the change in total revenue created by the sale of one more unit of output

d)

the marginal benefit provided by an additional unit of output

e)

always increasing as more output is sold

17.

Everyone acts in their own self interest to make decisions by comparing the marginal cost to the ___________

a)

trade off

b)

comparative advantage

c)

marginal benefit

18.

Looking at marginal analysis means looking at the __________ cost and benefit

a)

additional

b)

total

c)

average

19.

All of the alternatives to the choice we make are called

a)

opportunity costs

b)

marginal costs

c)

trade offs

20.

The most desirable alternative given up in a choice is called

a)

opportunity cost

b)

marginal cost

c)

trade off

21.

the income received from selling one additional unit of a good or service

a)

marginal benefit

b)

marginal cost

c)

marginal revenue

d)

profit

22.

income received from an economic action, minus the costs of taking the action

a)

marginal benefit

b)

marginal cost

c)

marginal revenue

d)

profit

23.

Revenue - Production Cost =

(a)  

24.

To calculate marginal cost you will need to calculate the cost per unit and then find the (a)   between one unit and the next.

25.

You made a good decision if:

a)

Marginal cost is greater then marginal benefit

b)

Marginal cost is less than marginal benefit

c)

Marginal benefit is greater then marginal cost

d)

Marginal benefit is less then marginal cost

26.

Human capital is Tangible

a)

True

b)

False

27.

What is an example of Human Capital? Select all that apply

a)

On the Job training

b)

A company wanting to expand

c)

Graduating with a degree

d)

Losing the cash in your wallet

28.

Which of the following is an investment in your own Human Capital? Select all that apply

a)

On the job training

b)

Getting an college degree

c)

Attending a workshop in your occupation

d)

Donating clothes to the local Goodwill

29.

What would cause one job to pay more than another?

a)

The age of the individual

b)

The number of french fries the person can eat in a minute

c)

How much fun they have while they work

d)

The length of training, level of education, and the difficulty of the job

30.

True or False, Human Capital is a persons level of education, job experience, and skills

a)

True

b)

False

31.

Which are examples of physical capital?

a)

Iron ore, silver, wood, diamonds.

b)

On the job training, public education.

c)

Technology, machinery, buildings, tools.

d)

Starting your own business or inventing something new.

32.

Germany upgrades its highways.

a)

Human Capital

b)

Capital Goods (Physical)

33.

A company builds a new factory.

a)

Human Capital

b)

Capital Goods (Physical)