WorksheetsMr. Fox's Econ Quiz for Chapters 1-3
Total questions: 15
Worksheet time: 8mins
What is the fundamental problem of economics?
Scarcity
Unemployment
Economic growth
Inflation
Which of the following best describes opportunity cost?
The price of a good or service
The additional cost of producing one more unit
The amount of money spent on a choice
The value of the next best alternative foregone
In a market economy, who makes the decisions about what to produce?
Central planners
The military
Businesses and consumers
The government
The production possibilities frontier (PPF) illustrates:
The maximum possible output combinations of two goods
The equilibrium price of goods
The total demand for a product
The revenue-maximizing level of production
Which of the following would cause a PPF to shift outward?
Increased unemployment
A reduction in trade
A decrease in available resources
Technological advancement
In economic models, ceteris paribus means:
"At maximum efficiency"
"According to demand"
"All else held constant"
"Always increasing"
Which of the following is a public good?
A pair of shoes
A smartphone
A car
National defense
The law of demand states that:
Price and quantity demanded are directly related
Price and quantity demanded are inversely related
Higher income decreases demand
Supply determines demand
A price ceiling set below equilibrium price will cause:
A Surplus
Equilibrium
Problems
A shortage
A price floor set above equilibrium price will cause:
A surplus
Toilet Paper Panic
A Shortage
Scarcity
A rational decision-maker will choose to undertake an action only if:
It results in an equal distribution of resources
It maximizes total revenue
The marginal benefit exceeds the marginal cost
The total cost is zero
What type of economic system is based on customs and traditions?
Traditional economy
Mixed eCommand economyconomy
Market economy
What is a normative economic statement?
One that is based on opinions and values
One that only applies to microeconomics
One that can be tested and proven false
One that describes the world as it is
The law of demand states that:
Price and quantity demanded are directly related
Price and quantity demanded are inversely related
Higher income decreases demand
Supply determines demand
A point outside the PPF represents:
Unused resources
Efficient Production
Unattainable production given current resources
Maximum output
