WorksheetsEco - Chapter 1 - What is Economics?
Total questions: 22
Worksheet time: 11mins
Name
Class
Date
1.
The need to make choices arises because
a)
some things are not limited
b)
shortages are constant situation
c)
everything that exits is limited
d)
people need to share their resources
2.
The basic problem of economics is
a)
scarcity
b)
shortages
c)
lack of choice
d)
overabundance of resources
3.
To an economist, a want is
a)
something you do not have
b)
something you must have to survive
c)
someething other than a basic survival need
d)
something most people have
4.
The four factors of production are the resources of land, labor, capital, and:
a)
productivity
b)
entrepreneurship
c)
technology
d)
services
5.
As an economic term, land includes:
a)
work people do
b)
machinery
c)
natural resources
d)
knowledge
6.
What trade-off is involved when you buy a CD?
a)
exchanging time for money
b)
exchanging money for goods
c)
exchanging one service for another
d)
exchanging goods for services
7.
In a trade-off, opportunity cost is the value of the:
a)
factors of production
b)
scarce resources
c)
action that was chosen
d)
next best alternative
8.
The amount of military goods given up in a year is the opportunity cost for producing:
a)
more weapons
b)
a balanced budget
c)
more civilian goods
d)
a production possibilities curve
9.
Which of the following describes what economist do?
a)
predict which policies will be good or bad
b)
offer solutions to economic problems
c)
consider every detail of a problem
d)
rely on public opinion
10.
Economics is the study of how people:
a)
calculate their income tax
b)
choose from limited resources to meet their needs
c)
respond to war and drought
d)
gain knowledge and skills from study and experience
11.
Which of the following is an opportunity cost of going to college?
a)
increasing education
b)
higher earnings in the future
c)
loss of current income
d)
all of the above
12.
Shortages occur when:
a)
many people are unemployed
b)
interest rates go up
c)
people have trouble supplying the goods and services at current prices
d)
the United States imports more than it exports
13.
Which statement about scarcity is false?
a)
No economy has an unlimited supply of economics.
b)
Scarcity exists when demand exceeds supply.
c)
Scarcity forces individuals to make economics choices.
d)
Only the poor countries of the world have scarcity problems.
14.
Scarcity is an economic problem for:
a)
individuals only
b)
poor nations only
c)
nations only
d)
both individuals and nations
15.
A person who makes goods or provides services is acting as:
a)
an economist
b)
a consumer
c)
a producer
d)
none of the above
16.
Economics will help you by:
a)
making good choices and desires for your own future
b)
fulfilling your responsibility as a citizen in a democracy
c)
understanding the issues facing business and governments while helping you make intelligent decisions
d)
all of the above
17.
All economic systems:
a)
produce the same goods
b)
must answer the same three basic questions
c)
have the same resources
d)
distribute products through majority rule
18.
Who owns the factors of production and makes economic decisions in a market economy?
a)
individuals
b)
governement
c)
economists
d)
communities
19.
The loss of the highest-valued alternative defines the concept of:
a)
entrepreneurship
b)
scarcity
c)
technology
d)
opportunity cost
20.
The most fundamental economic problem is:
a)
security
b)
health
c)
opportunity costs
d)
scarcity
21.
Which of the following is NOT a factor of production?
a)
A share of stock issued by a firm.
b)
A new computer used by a small business owner.
c)
A tractor used by a wheat farmer.
d)
The time worked by elementary school teachers.
22.
Human capital is:
a)
Machinery that meets or exceeds federal safety standards for use by humans.
b)
All capital owned by individuals or corporations, but not by governments.
c)
The skill and knowledge of workers.
d)
All capital owned by individuals, but not by corporations or governments.
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