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Fundamentals of Economics

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

Which of the following is true?

a)

Scarcity and shortage always exist

b)

Scarcity is temporary and shortage always exists

c)

Scarcity always exists and shortage is temporary

d)

Scarcity and shortage are temporary

2.

Scarcity is:

a)

Limited resources to meet unlimited demand

b)

The same thing as shortage

c)

A market condition in which the quantity supplied at the current market price is not enough to meet demand

d)

None of the above

3.

Which of the following can cause a shortage of a particular good?

a)

Increase in quantity demanded

b)

Increase in demand

c)

Increase in quantity supplied

d)

Increase in supply

4.

Which is the best representation of factors of production?

a)

Financing used to build a business

b)

Labor and materials

c)

Raw materials used to manufacture products

d)

Resources used by a company to provide goods and services

5.

Which of the following is considered a need? SELECT ALL THAT APPLY.

a)

Groceries

b)

Shelter

c)

Gold chain

d)

Water

e)

iPhone

6.

Which of the following is considered a want?

a)

Water

b)

Starbucks

c)

Sunglasses

d)

Corvette

e)

Baby food

7.

Which of the following is affected by the condition of scarcity?

a)

Businesses

b)

Large economies

c)

Rich people

d)

All of society

8.

Which of the following was a key figure in the history of economics? SELECT ALL THAT APPLY.

a)

Karl Marx

b)

Lori Amos

c)

Adam Smith

d)

Chad Wykle

e)

Milton Friedman

9.

The condition in which there aren't enough resources available to produce everything that individuals need is__

a)

opportunity cost

b)

scarcity

c)

circular flow model

d)

choice

10.

The value of goods and services that are given up in order to obtain an alternative good or service is__

a)

scarcity

b)

circular flow model

c)

choice

d)

opportunity cost

11.

____ is the study of how individuals, businesses and governments make choices about what to produce and what to consume.

a)

History

b)

Government

c)

Economics

d)

Sociology

12.

____ and ____ are the basic economic problems faced by every society.

a)

scarcity, choice

b)

freedom, oppression

c)

peace, unrest

d)

All are correct

13.

What is the primary focus of microeconomics?

a)

A) The study of individual markets and consumer behavior

b)

B) The study of national economies and global markets

c)

C) The study of government policies and regulations

d)

D) The study of historical economic trends

14.

Which of the following best describes opportunity cost?

a)

A) The financial cost of a decision

b)

B) The time spent on a decision

c)

C) The value of the next best alternative foregone

d)

D) The total cost of all alternatives

15.

What is a mixed economy?

a)

A) An economy with no government intervention

b)

B) An economy that relies solely on market forces

c)

C) An economy that combines elements of both capitalism and socialism

d)

D) An economy that is entirely planned by the government