WorksheetsWhat is Economics
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Rationing exists because of
a)
a surplus of products.
b)
price.
c)
scarcity.
d)
incentives.
2.
The opportunity cost of something is
a)
the dollar value of the item.
b)
less than the dollar value of the item.
c)
more costly to the poor.
d)
what you give up to get the item.
3.
The marginal cost of something is
a)
never greater than the marginal benefit.
b)
the opportunity cost minus the actual cost.
c)
the cost to produce one additional unit.
d)
an intangible resource.
4.
A production possibilities frontier shows
a)
all possible combinations of two goods an economy can produce.
b)
all the possible production of one particular good.
c)
all possible combinations of all the goods that an economy can produce.
d)
all the possible combinations of four goods an economy can produce.
5.
If you are making decisions at the margin, you are
a)
selecting either all or nothing at all.
b)
confused about what to do.
c)
comparing the extra benefit to the extra cost.
d)
All of the above.
6.
If your parents offer you cash for every A on your report card, that is an example of
a)
an incentive.
b)
a bribe.
c)
marginal cost
d)
a trade-off.
7.
Animals are classified as which of the following factors of production?
a)
land
b)
labor
c)
capital
d)
entrepreneurship
8.
Which of the following groups is faced with scarcity?
a)
individuals
b)
businesses
c)
society
d)
All of the above
9.
Economics would not exist if it were not for
a)
mathematics.
b)
scarcity.
c)
incentives.
d)
money.
10.
Opportunity cost is most similar to
a)
a trade-off.
b)
the dollar value given up.
c)
your choice.
d)
all the alternatives forfeited.
11.
Opportunity cost could be described as
a)
the dollar price paid for your selection.
b)
your first choice.
c)
all the alternatives you consider.
d)
your second choice.
12.
As the opportunity cost of a decision increases, a person will be
a)
more likely to make such a decision.
b)
less likely to make such a decision.
c)
unaffected.
d)
Cannot predict.
13.
When a society spends money on national defense, there is
a)
a trade-off, since that money cannot be used for a school or a bridge.
b)
no trade-off, since everyone benefits from national defense.
c)
a trade-off during peacetime, but not during wartime.
d)
no trade-off, since it is not a personal decision.
14.
Which of the following is an example of an incentive?
a)
money
b)
grades
c)
a promotion
d)
All of the above
15.
High school athletes who choose not to attend college but instead select professional sports
a)
don't realize what a college education is worth.
b)
have weighed the costs and benefits.
c)
can't play forever and are making a poor decision.
d)
should attend college first, then play professional sports.
16.
Economists believe that people respond to
a)
politicians.
b)
incentives.
c)
theories.
d)
unlimited wants.
17.
Another word for marginal is
a)
modified.
b)
edge.
c)
additional.
d)
summarized.
18.
To an economist, "capital" refers to
a)
money.
b)
machinery and tools.
c)
resources found in nature.
d)
new business opportunities.
19.
Price
a)
isn't a fair method of rationing.
b)
allocates products to those who are willing and able to pay.
c)
constantly increases on all products.
d)
drops when a product becomes popular.
20.
mandatory seatbelt laws have
a)
saved lives.
b)
cost llives.
c)
impacted driver behavior.
d)
All of the above
100 %
