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midterm economics study guide

Total questions: 57

Worksheet time: 29mins

Name
Class
Date
1.

Define the term listed below:

Tangible

a)

Physical assets or objects that can be touched or measured, such as machinery or buildings.

b)

Resources used to produce goods and services, including financial, physical, and human capital

c)

The economic principle that resources are limited while human wants are unlimited

d)

The branch of economics that studies individual behavior and decision-making in small units, such as households and businesses

e)

A set of principles or ideas used to explain and predict economic behavior

2.

Define the term listed below:

Capital

a)

Physical assets or objects that can be touched or measured, such as machinery or buildings.

b)

Resources used to produce goods and services, including financial, physical, and human capital

c)

The economic principle that resources are limited while human wants are unlimited

d)

The branch of economics that studies individual behavior and decision-making in small units, such as households and businesses

e)

A set of principles or ideas used to explain and predict economic behavior

3.

Define the term listed below:

Scarcity

a)

Physical assets or objects that can be touched or measured, such as machinery or buildings.

b)

Resources used to produce goods and services, including financial, physical, and human capital

c)

The economic principle that resources are limited while human wants are unlimited

d)

The branch of economics that studies individual behavior and decision-making in small units, such as households and businesses

e)

A set of principles or ideas used to explain and predict economic behavior

4.

Define the term listed below:

Microeconomics

a)

Physical assets or objects that can be touched or measured, such as machinery or buildings.

b)

Resources used to produce goods and services, including financial, physical, and human capital

c)

The economic principle that resources are limited while human wants are unlimited

d)

The branch of economics that studies individual behavior and decision-making in small units, such as households and businesses

e)

A set of principles or ideas used to explain and predict economic behavior

5.

Define the term listed below:

Theory

a)

Physical assets or objects that can be touched or measured, such as machinery or buildings.

b)

Resources used to produce goods and services, including financial, physical, and human capital

c)

The economic principle that resources are limited while human wants are unlimited

d)

The branch of economics that studies individual behavior and decision-making in small units, such as households and businesses

e)

A set of principles or ideas used to explain and predict economic behavior

6.

Define the term listed below:

Opportunity Cost

a)

The value of the next best alternative that is foregone when making a choice.

b)

Inputs used to produce goods and services, such as land, labor, and capital.

c)

A mechanism for determining how resources or goods are distributed, often based on price or priority.

d)

A situation where choosing one option requires giving up another.

e)

A factor that motivates or influences behavior and decision-making.

7.

Define the term listed below:

Resource

a)

The value of the next best alternative that is foregone when making a choice.

b)

Inputs used to produce goods and services, such as land, labor, and capital.

c)

A mechanism for determining how resources or goods are distributed, often based on price or priority.

d)

A situation where choosing one option requires giving up another.

e)

A factor that motivates or influences behavior and decision-making.

8.

Define the term listed below:

Rationing Device

a)

The value of the next best alternative that is foregone when making a choice.

b)

Inputs used to produce goods and services, such as land, labor, and capital.

c)

A mechanism for determining how resources or goods are distributed, often based on price or priority.

d)

A situation where choosing one option requires giving up another.

e)

A factor that motivates or influences behavior and decision-making.

9.

Define the term listed below:

Trade-Off

a)

The value of the next best alternative that is foregone when making a choice.

b)

Inputs used to produce goods and services, such as land, labor, and capital.

c)

A mechanism for determining how resources or goods are distributed, often based on price or priority.

d)

A situation where choosing one option requires giving up another.

e)

A factor that motivates or influences behavior and decision-making.

10.

Define the term listed below:

Incentive

a)

The value of the next best alternative that is foregone when making a choice.

b)

Inputs used to produce goods and services, such as land, labor, and capital.

c)

A mechanism for determining how resources or goods are distributed, often based on price or priority.

d)

A situation where choosing one option requires giving up another.

e)

A factor that motivates or influences behavior and decision-making.

11.

Define the term listed below:

Services

a)

Intangible activities or benefits provided for consumer needs, such as healthcare or education.

b)

Human effort, both physical and mental, used in the production of goods and services

c)

Tangible items produced for consumption or use, such as food or clothing.

d)

Non-physical assets or qualities, such as intellectual property or brand reputation

e)

The branch of economics that studies the overall economy, including growth, inflation, and unemployment.

12.

Define the term listed below:

Labor

a)

Intangible activities or benefits provided for consumer needs, such as healthcare or education.

b)

Human effort, both physical and mental, used in the production of goods and services

c)

Tangible items produced for consumption or use, such as food or clothing.

d)

Non-physical assets or qualities, such as intellectual property or brand reputation

e)

The branch of economics that studies the overall economy, including growth, inflation, and unemployment.

13.

Define the term listed below:

Goods

a)

Intangible activities or benefits provided for consumer needs, such as healthcare or education.

b)

Human effort, both physical and mental, used in the production of goods and services

c)

Tangible items produced for consumption or use, such as food or clothing.

d)

Non-physical assets or qualities, such as intellectual property or brand reputation

e)

The branch of economics that studies the overall economy, including growth, inflation, and unemployment.

14.

Define the term listed below:

Intangible

a)

Intangible activities or benefits provided for consumer needs, such as healthcare or education.

b)

Human effort, both physical and mental, used in the production of goods and services

c)

Tangible items produced for consumption or use, such as food or clothing.

d)

Non-physical assets or qualities, such as intellectual property or brand reputation

e)

The branch of economics that studies the overall economy, including growth, inflation, and unemployment.

15.

Define the term listed below:

Macroeconomics

a)

Intangible activities or benefits provided for consumer needs, such as healthcare or education.

b)

Human effort, both physical and mental, used in the production of goods and services

c)

Tangible items produced for consumption or use, such as food or clothing.

d)

Non-physical assets or qualities, such as intellectual property or brand reputation

e)

The branch of economics that studies the overall economy, including growth, inflation, and unemployment.

16.

Define the term listed below:

Economic System

a)

The structure by which a society organizes and distributes resources, goods, and services.

b)

The economic theory that the value of a good is determined by the labor required to produce it.

c)

The process of increasing interconnectedness and integration of economies worldwide.

d)

An economic system where businesses operate with minimal government intervention.

e)

The difference between the value of goods produced by labor and the wages paid to workers.

17.

Define the term listed below:

Labor Theory of Value

a)

The structure by which a society organizes and distributes resources, goods, and services.

b)

The economic theory that the value of a good is determined by the labor required to produce it.

c)

The process of increasing interconnectedness and integration of economies worldwide.

d)

An economic system where businesses operate with minimal government intervention.

e)

The difference between the value of goods produced by labor and the wages paid to workers.

18.

Define the term listed below:

Globalization

a)

The structure by which a society organizes and distributes resources, goods, and services.

b)

The economic theory that the value of a good is determined by the labor required to produce it.

c)

The process of increasing interconnectedness and integration of economies worldwide.

d)

An economic system where businesses operate with minimal government intervention.

e)

The difference between the value of goods produced by labor and the wages paid to workers.

19.

Define the term listed below:

Free Enterprise

a)

The structure by which a society organizes and distributes resources, goods, and services.

b)

The economic theory that the value of a good is determined by the labor required to produce it.

c)

The process of increasing interconnectedness and integration of economies worldwide.

d)

An economic system where businesses operate with minimal government intervention.

e)

The difference between the value of goods produced by labor and the wages paid to workers.

20.

Define the term listed below:

Surplus Value

a)

The structure by which a society organizes and distributes resources, goods, and services.

b)

The economic theory that the value of a good is determined by the labor required to produce it.

c)

The process of increasing interconnectedness and integration of economies worldwide.

d)

An economic system where businesses operate with minimal government intervention.

e)

The difference between the value of goods produced by labor and the wages paid to workers.

21.

Define the term listed below:

Income Distribution

a)

The way in which income is divided among individuals or groups in an economy.

b)

A strategy or blueprint outlining economic goals and how to achieve them.

c)

A long-term goal or idea for the future direction of an economy or organization.

d)

An economic system where resources and means of production are owned and managed collectively or by the state.

e)

An economic system combining elements of capitalism and socialism, with both private and public sectors.

22.

Define the term listed below:

Economic Plan

a)

The way in which income is divided among individuals or groups in an economy.

b)

A strategy or blueprint outlining economic goals and how to achieve them.

c)

A long-term goal or idea for the future direction of an economy or organization.

d)

An economic system where resources and means of production are owned and managed collectively or by the state.

e)

An economic system combining elements of capitalism and socialism, with both private and public sectors.

23.

Define the term listed below:

Vision

a)

The way in which income is divided among individuals or groups in an economy.

b)

A strategy or blueprint outlining economic goals and how to achieve them.

c)

A long-term goal or idea for the future direction of an economy or organization.

d)

An economic system where resources and means of production are owned and managed collectively or by the state.

e)

An economic system combining elements of capitalism and socialism, with both private and public sectors.

24.

Define the term listed below:

Socialism

a)

The way in which income is divided among individuals or groups in an economy.

b)

A strategy or blueprint outlining economic goals and how to achieve them.

c)

A long-term goal or idea for the future direction of an economy or organization.

d)

An economic system where resources and means of production are owned and managed collectively or by the state.

e)

An economic system combining elements of capitalism and socialism, with both private and public sectors.

25.

Define the term listed below:

Mixed Economy

a)

The way in which income is divided among individuals or groups in an economy.

b)

A strategy or blueprint outlining economic goals and how to achieve them.

c)

A long-term goal or idea for the future direction of an economy or organization.

d)

An economic system where resources and means of production are owned and managed collectively or by the state.

e)

An economic system combining elements of capitalism and socialism, with both private and public sectors.

26.

Define the term listed below:

Public Good

a)

A good or service that is nonexcludable and nonrivalrous, such as national defense or street lighting.

b)

Moral principles guiding behavior, including economic decisions and policies.

c)

Ownership of resources and assets by individuals or businesses rather than the state.

d)

An individual who organizes and manages resources to create goods or services, often taking financial risks.

e)

Someone who benefits from a public good without contributing to its cost.

27.

Define the term listed below:

Ethics

a)

A good or service that is nonexcludable and nonrivalrous, such as national defense or street lighting.

b)

Moral principles guiding behavior, including economic decisions and policies.

c)

Ownership of resources and assets by individuals or businesses rather than the state.

d)

An individual who organizes and manages resources to create goods or services, often taking financial risks.

e)

Someone who benefits from a public good without contributing to its cost.

28.

Define the term listed below:

Private Property

a)

A good or service that is nonexcludable and nonrivalrous, such as national defense or street lighting.

b)

Moral principles guiding behavior, including economic decisions and policies.

c)

Ownership of resources and assets by individuals or businesses rather than the state.

d)

An individual who organizes and manages resources to create goods or services, often taking financial risks.

e)

Someone who benefits from a public good without contributing to its cost.

29.

Define the term listed below:

Entrepreneur

a)

A good or service that is nonexcludable and nonrivalrous, such as national defense or street lighting.

b)

Moral principles guiding behavior, including economic decisions and policies.

c)

Ownership of resources and assets by individuals or businesses rather than the state.

d)

An individual who organizes and manages resources to create goods or services, often taking financial risks.

e)

Someone who benefits from a public good without contributing to its cost.

30.

Define the term listed below:

Free Rider

a)

A good or service that is nonexcludable and nonrivalrous, such as national defense or street lighting.

b)

Moral principles guiding behavior, including economic decisions and policies.

c)

Ownership of resources and assets by individuals or businesses rather than the state.

d)

An individual who organizes and manages resources to create goods or services, often taking financial risks.

e)

Someone who benefits from a public good without contributing to its cost.

31.

Define the term listed below:

Public Property

a)

Assets owned and managed by the government for public use, such as parks or roads.

b)

A cost imposed on third parties by an economic transaction, such as pollution.

c)

A legally binding agreement between two or more parties outlining terms and conditions.

d)

A good that cannot exclude individuals from use and does not diminish with use, like clean air.

e)

A system or platform where buyers and sellers interact to exchange goods or services.

32.

Define the term listed below:

Negative Externality

a)

Assets owned and managed by the government for public use, such as parks or roads.

b)

A cost imposed on third parties by an economic transaction, such as pollution.

c)

A legally binding agreement between two or more parties outlining terms and conditions.

d)

A good that cannot exclude individuals from use and does not diminish with use, like clean air.

e)

A system or platform where buyers and sellers interact to exchange goods or services.

33.

Define the term listed below:

Contract

a)

Assets owned and managed by the government for public use, such as parks or roads.

b)

A cost imposed on third parties by an economic transaction, such as pollution.

c)

A legally binding agreement between two or more parties outlining terms and conditions.

d)

A good that cannot exclude individuals from use and does not diminish with use, like clean air.

e)

A system or platform where buyers and sellers interact to exchange goods or services.

34.

Define the term listed below:

Nonexcludable Public Good

a)

Assets owned and managed by the government for public use, such as parks or roads.

b)

A cost imposed on third parties by an economic transaction, such as pollution.

c)

A legally binding agreement between two or more parties outlining terms and conditions.

d)

A good that cannot exclude individuals from use and does not diminish with use, like clean air.

e)

A system or platform where buyers and sellers interact to exchange goods or services.

35.

Define the term listed below:

Market

a)

Assets owned and managed by the government for public use, such as parks or roads.

b)

A cost imposed on third parties by an economic transaction, such as pollution.

c)

A legally binding agreement between two or more parties outlining terms and conditions.

d)

A good that cannot exclude individuals from use and does not diminish with use, like clean air.

e)

A system or platform where buyers and sellers interact to exchange goods or services.

36.

Define the term listed below:

Substitute

a)

A good or service that can replace another in fulfilling a similar need.

b)

A measure of how demand for a good responds to price changes.

c)

A good whose demand increases as consumer income rises.

d)

A table showing the quantity of a good consumers are willing to buy at various prices.

e)

The desire, willingness, and ability to purchase a good or service at various prices.

37.

Define the term listed below:

Elasticity of Demand

a)

A good or service that can replace another in fulfilling a similar need.

b)

A measure of how demand for a good responds to price changes.

c)

A good whose demand increases as consumer income rises.

d)

A table showing the quantity of a good consumers are willing to buy at various prices.

e)

The desire, willingness, and ability to purchase a good or service at various prices.

38.

Define the term listed below:

Demand Schedule

a)

A good or service that can replace another in fulfilling a similar need.

b)

A measure of how demand for a good responds to price changes.

c)

A good whose demand increases as consumer income rises.

d)

A table showing the quantity of a good consumers are willing to buy at various prices.

e)

The desire, willingness, and ability to purchase a good or service at various prices.

39.

Define the term listed below:

Normal Good

a)

A good or service that can replace another in fulfilling a similar need.

b)

A measure of how demand for a good responds to price changes.

c)

A good whose demand increases as consumer income rises.

d)

A table showing the quantity of a good consumers are willing to buy at various prices.

e)

The desire, willingness, and ability to purchase a good or service at various prices.

40.

Define the term listed below:

Demand

a)

A good or service that can replace another in fulfilling a similar need.

b)

A measure of how demand for a good responds to price changes.

c)

A good whose demand increases as consumer income rises.

d)

A table showing the quantity of a good consumers are willing to buy at various prices.

e)

The desire, willingness, and ability to purchase a good or service at various prices.

41.

Define the term listed below:

Demand Curve

a)

A graph showing the relationship between the price of a good and the quantity demanded.

b)

A good that is consumed together with another, such as coffee and sugar.

c)

A good whose demand is unaffected by changes in consumer income.

d)

A good whose demand decreases as consumer income rises.

e)

A limit on the quantity of a good that can be produced or imported.

42.

Define the term listed below:

Complement

a)

A graph showing the relationship between the price of a good and the quantity demanded.

b)

A good that is consumed together with another, such as coffee and sugar.

c)

A good whose demand is unaffected by changes in consumer income.

d)

A good whose demand decreases as consumer income rises.

e)

A limit on the quantity of a good that can be produced or imported.

43.

Define the term listed below:

Neutral Good

a)

A graph showing the relationship between the price of a good and the quantity demanded.

b)

A good that is consumed together with another, such as coffee and sugar.

c)

A good whose demand is unaffected by changes in consumer income.

d)

A good whose demand decreases as consumer income rises.

e)

A limit on the quantity of a good that can be produced or imported.

44.

Define the term listed below:

Inferior Good

a)

A graph showing the relationship between the price of a good and the quantity demanded.

b)

A good that is consumed together with another, such as coffee and sugar.

c)

A good whose demand is unaffected by changes in consumer income.

d)

A good whose demand decreases as consumer income rises.

e)

A limit on the quantity of a good that can be produced or imported.

45.

Define the term listed below:

Quota

a)

A graph showing the relationship between the price of a good and the quantity demanded.

b)

A good that is consumed together with another, such as coffee and sugar.

c)

A good whose demand is unaffected by changes in consumer income.

d)

A good whose demand decreases as consumer income rises.

e)

A limit on the quantity of a good that can be produced or imported.

46.

Define the term listed below:

Per-Unit Cost

a)

The cost associated with producing a single unit of a good or service.

b)

Financial assistance provided by the government to support or encourage certain economic activities.

c)

The amount of a good producer is willing to sell at a given price.

d)

The total amount of a good or service available for purchase at various prices.

e)

A graph showing the relationship between the price of a good and the quantity supplied.

47.

Define the term listed below:

Subsidy

a)

The cost associated with producing a single unit of a good or service.

b)

Financial assistance provided by the government to support or encourage certain economic activities.

c)

The amount of a good producer is willing to sell at a given price.

d)

The total amount of a good or service available for purchase at various prices.

e)

A graph showing the relationship between the price of a good and the quantity supplied.

48.

Define the term listed below:

Quantity Supplied

a)

The cost associated with producing a single unit of a good or service.

b)

Financial assistance provided by the government to support or encourage certain economic activities.

c)

The amount of a good producer is willing to sell at a given price.

d)

The total amount of a good or service available for purchase at various prices.

e)

A graph showing the relationship between the price of a good and the quantity supplied.

49.

Define the term listed below:

Supply

a)

The cost associated with producing a single unit of a good or service.

b)

Financial assistance provided by the government to support or encourage certain economic activities.

c)

The amount of a good producer is willing to sell at a given price.

d)

The total amount of a good or service available for purchase at various prices.

e)

A graph showing the relationship between the price of a good and the quantity supplied.

50.

Define the term listed below:

Supply Curve

a)

The cost associated with producing a single unit of a good or service.

b)

Financial assistance provided by the government to support or encourage certain economic activities.

c)

The amount of a good producer is willing to sell at a given price.

d)

The total amount of a good or service available for purchase at various prices.

e)

A graph showing the relationship between the price of a good and the quantity supplied.

51.

Define the term listed below:

Unit-Elastic Supply

a)

A situation where the percentage change in quantity supplied equals the percentage change in price

b)

The economic principle that as the price of a good rises, the quantity supplied also rises, and vice versa.

c)

A situation where a small price change causes a significant change in the quantity supplied.

d)

A situation where a price change has little effect on the quantity supplied.

52.

Define the term listed below:

Law of Supply

a)

A situation where the percentage change in quantity supplied equals the percentage change in price

b)

The economic principle that as the price of a good rises, the quantity supplied also rises, and vice versa.

c)

A situation where a small price change causes a significant change in the quantity supplied.

d)

A situation where a price change has little effect on the quantity supplied.

53.

Define the term listed below:

Elastic Supply

a)

A situation where the percentage change in quantity supplied equals the percentage change in price

b)

The economic principle that as the price of a good rises, the quantity supplied also rises, and vice versa.

c)

A situation where a small price change causes a significant change in the quantity supplied.

d)

A situation where a price change has little effect on the quantity supplied.

54.

Define the term listed below:

Inelastic Supply

a)

A situation where the percentage change in quantity supplied equals the percentage change in price

b)

The economic principle that as the price of a good rises, the quantity supplied also rises, and vice versa.

c)

A situation where a small price change causes a significant change in the quantity supplied.

d)

A situation where a price change has little effect on the quantity supplied.

55.

What is land for production?

a)

Land and natural resources found on it.

b)

Physical and mental talents used to manufacture a product.

c)

Goods that can be used as resources for further production.

56.

What is labor for production?

a)

Land and natural resources found on it.

b)

Physical and mental talents used to manufacture a product.

c)

Goods that can be used as resources for further production.

57.

What is capital for production?

a)

Land and natural resources found on it.

b)

Physical and mental talents used to manufacture a product.

c)

Goods that can be used as resources for further production.