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Part 2: Econ Review for Final Assessment

Total questions: 29

Worksheet time: 15mins

Name
Class
Date
1.

Scarcity is the fundamental economic problem facing all ____.

a)

Scarcity is the fundamental economic problem facing all individuals, societies, and economies.

b)

Scarcity is the fundamental economic problem facing only wealthy individuals.

c)

Scarcity is the fundamental economic problem facing only developing countries.

d)

Scarcity is the fundamental economic problem facing only businesses.

2.

__________is a social science dealing with how people satisfy unlimited wants and the use of unlimited resources.

a)

Wants and Needs

b)

Renewable and Nonrenewable Resources

c)

Scarcity and Productivity

d)

Opportunity Cost and Marginal Cost

3.

The word “economics” comes from two Greek words. What do those two words mean?

a)

House and manage

b)

Trade and wealth

c)

Money and market

d)

Supply and demand

4.

What are the factors of production?

a)

Land, Labor, Capital, and Entrepreneurship

b)

Money, Machines, Materials, and Management

c)

Planning, Organizing, Leading, and Controlling

d)

Supply, Demand, Price, and Quantity

5.

What are consumers forced to do because of scarcity?

a)

Make choices

b)

Increase production

c)

Decrease consumption

d)

Ignore scarcity

6.

An incentive is:

a)

a reward or motivation (not always $) for doing something or making a choice

b)

a type of punishment for not budgeting income

c)

an extra tax added to goods

d)

a reason why a person does not do something or make a choice

7.

Needs are the basic requirements for ______, such as food, clothing, and shelter.

a)

survival

b)

entertainment

c)

luxury

d)

comfort

8.

Wants are things that we would like to have but are not ______ for survival.

a)

necessary

b)

essential

c)

vital

d)

crucial

9.

A good is a ______ economic product that is useful, transferable to others, and used to satisfy wants and needs.

a)

tangible

b)

intangible

c)

virtual

d)

hypothetical

10.

A consumer durable is a type of product that:

a)

is consumed immediately and needs frequent replacement

b)

is used over a long period and does not wear out quickly

c)

is a service rather than a physical product

d)

is a perishable good

11.

A durable good lasts for at least 3 years when used ______.

a)

regularly

b)

occasionally

c)

once every six months

d)

rarely

12.

A ______ good wears out, is used up, or lasts for fewer than 3 years when used regularly.

a)

Nondurable

b)

Durable

c)

Perishable

d)

Long-lasting

13.

______ goods are tools, equipment, or other manufactured goods that are used to ______ other goods and services.

a)

Capital, produce

b)

Consumer, consume

c)

Raw, create

d)

Finished, sell

14.

______ is the work or labor performed for someone such as haircuts, home repairs, and forms of entertainment.

a)

Service

b)

Product

c)

Goods

d)

Merchandise

15.

Value is the monetary worth of a good or service as determined by the ______.

a)

consumers

b)

market

c)

year

d)

government

16.

A ______ good is intended for final use by consumers rather than a business.

a)

Consumer

b)

Industrial

c)

Capital

d)

Intermediate

17.

What is a consumer nondurable?

a)

A type of good that is consumed quickly and needs to be purchased frequently

b)

A durable good that lasts for a long time

c)

A service provided to consumers

d)

An investment product

18.

Wealth is the sum of tangible economic goods that are scarce, useful, and ________ from one person to another.

a)

free

b)

transferable

c)

services

d)

scarcity

19.

Goods are counted as wealth, but ________ are not included.

a)

costs

b)

goods

c)

services

d)

transferable

20.

Which of the following categories do the products you come in contact with on a daily basis fall into?

a)

Needs

b)

Wants

c)

Both Needs and Wants

d)

Neither

21.

True or False: Economics measures economic activity and often refers to Gross domestic product (GDP).

a)

True

b)

false

22.

Identify and explain the fundamental economic problem that all societies face.

a)

Scarcity of resources

b)

Abundance of resources

c)

Equal distribution of wealth

d)

Unlimited wants

23.

Why do we study economics?

a)

The study of economics helps people understand the world around them. It enables people to understand people, businesses, markets and governments

b)

To learn how to cook

c)

To become a professional athlete

d)

To study ancient history

24.

Why do all societies face the problem of scarcity?

a)

There are a limited amount of resources available

b)

Resources are evenly distributed among all societies

c)

Societies choose to limit their resources

d)

Scarcity is a myth created by economists

25.

Do you think there are any policies or steps that a society can take to avoid scarcity, in terms of supplying all the needs of its population?

a)

Yes, there are policies that can help avoid scarcity.

b)

No, it is not possible to avoid scarcity completely.

c)

It depends on the economic structure of the society.

d)

Only technological advancements can prevent scarcity.

26.

Which categories of goods used by ordinary people are most affected by scarcity?

a)

nondurable goods and consumer goods

b)

luxury goods

c)

capital goods

d)

industrial goods

27.

Define the term 'Capital Good'.

a)

A type of financial asset

b)

A consumer product

c)

A durable good used in production

d)

A service provided by the government

28.

Consumer goods are defined as:

a)

Goods that are used by consumers for personal use

b)

Goods that are used in the production of other goods

c)

Goods that are used for investment purposes

d)

Goods that are used for government projects

29.

A 'Durable Good' is defined as:

a)

a good that is consumed in one use

b)

a good that lasts for a long time and does not quickly wear out

c)

a service that is provided over a period of time

d)

a perishable item that needs to be used quickly