WorksheetsPFL-Eco Unit 1-2 Review
Total questions: 16
Worksheet time: 8mins
Which statement is incorrect?
Economics deals with the problem of unlimited wants and limited resources.
Scarcity is a problem associated only with the poor nations of the world.
Giving up one thing to get something else is called a trade-off.
What one has to give up when making a choice is an opportunity cost.
Economics is a study of consumer
Choices
Demand
Availability
Supply
Which most clearly shows the concept of opportunity cost?
A student decides to read a book instead of going to a movie
A child is paid a weekly allowance for doing household chores
A teenager receives a wage increase from her employer
A youngster loses the money he had been saving for six weeks
The basic difference between consumer goods and capital goods is that
Consumer goods satisfy wants directly; capital goods satisfy wants indirectly
The production of capital goods is not subject to the law of increasing costs
An economy that uses a large part of its resources to make capital goods must accept a lower growth rate
Consumer goods are produced (made) in the private sector and capital goods are produced by government
If resources are scarce, it means that:
they cannot provide enough goods or services to satisfy human material wants and needs
it is impossible to create a supply of, and a demand for, these resources
they have no opportunity cost
they have an unlimited supply
Points on the graph represents a combination of Robots and corn that:
is impossible for this country to produce with its existing resources.
can be produced only if all resources are used fully and efficiently.
can be produced without using all of the country’s resources.
can be produced only if a technological advance occurs.
The production possibilities curve illustrates that
The economy will automatically end up at full employment
In a perfect world there is no scarcity
If all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced
Economic production possibilities have no limit
Unemployment and/or inefficient use of resources
can both be illustrated by a point inside (to the left of) the PPC
can exist at any point on a PPC
causes the PPC to shift to the left
can both be illustrated by a point outside (to the right of) the PPC
Technological improvement is represented by a
shift inward (to the left) in the PPC
shift outward (to the right) in the PPC
movement along the PPC from one point to another
a point below (inside) the curve
Assume an economy is operating at some point on its PPC which shows civilian (non-military) and military goods. If the output of military goods is increased, the output of civilian goods
must also be increased
must be decreased
may be either increased or decreased
will remain unchanged
The key concept that serves as the basis for the study of economics is
Inflation
Money
Unemployment
Scarcity
What do we call the study of choices people make in order to satisfy their needs and wants?
Sociology
Economics
Opportunity Cost
Factors of Production
Which of these would cause a shift in supply from S₁ to S₂?
Many students apply for jobs during the holiday season, lured by higher wages.
A toy company closes three of its factories.
A gas company develops new technology to deliver natural gas.
Once the school year starts fast food chains raise wages to attract new workers.
If a price ceiling is imposed on the market for gasoline, the quantity demanded will be
greater than the quantity supplied
equal to the quantity supplied
less than the quantity supplied
likely to remain constant with the quantity supplied
Karen works after school at the mall at a pretzel stand. Which statement best explains the role of workers in the circular flow of income?
Workers are a factor of production, and they produce goods or services.
Workers represent the households that use goods and services.
Workers represent businesses and pay dividends to stockholders.
Workers are consumers who buy products made by firms.
If 3 people want a candy bar, is there a scarcity?
Yes, there is a scarcity.
No, there is not a scarcity.
