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WorksheetsEconomics
Total questions: 20
Worksheet time: 3600secs
What is economics?
The study of past civilizations
The study of human behavior
The study of how people make choices to satisfy their needs and wants
The study of weather patterns
What is the economic concept of scarcity?
Unlimited resources for unlimited wants
Limited resources for unlimited wants
Unlimited resources for limited wants
Limited resources for limited wants
How does scarcity affect economic decision-making?
It reduces the importance of opportunity cost
It eliminates the need for trade-offs
It forces individuals to make choices
It ensures unlimited resources
What is a shortage?
A temporary lack of resources
A permanent lack of resources
An abundance of resources
A surplus of resources
What are the factors of production?
Land, labor, capital, and entrepreneurship
Money, time, effort, and skill
Water, air, fire, and earth
Supply, demand, price, and cost
Why is it beneficial for people and businesses to use capital?
It increases the cost of production
It decreases efficiency
It increases productivity and efficiency
It reduces the need for labor
Why are goods and services scarce?
Because resources are unlimited
Because resources are limited
Because demand is low
Because production is easy
What does the phrase “guns or butter” represent?
A choice between military and consumer goods
A choice between food and clothing
A choice between technology and agriculture
A choice between health and education
What is opportunity cost?
The cost of the next best alternative foregone
The cost of all alternatives foregone
The cost of the chosen option
The cost of production
Opportunity cost:
can be avoided by wealthy people
is inherent in all decisions/choices
can only be expressed in monetary terms
impacts small businesses more often than large businesses
Economists looking at decisions to add or subtract from production is called what?
Thinking at the margin
Cost-benefit analysis
Production assessment
Evaluation of resources
To make rational decisions at the margin, decision makers must weigh what two things?
Costs and benefits
Time and money
Resources and needs
Wants and desires
What does a production possibilities curve help us to visualize?
The maximum possible output combinations of two goods
The minimum possible output combinations of two goods
The average output combinations of two goods
The impossible output combinations of two goods
What does the production possibilities frontier show?
The trade-offs between producing two goods
The cost of producing one good
The demand for two goods
The supply of one good
What does it mean to use resources efficiently?
Maximizing waste
Minimizing output
Maximizing output with given resources
Minimizing input
What does the term 'marginal cost' refer to?
The total cost of production
The cost of producing one additional unit
The average cost of all units produced
The cost of the first unit produced
What is the significance of a production possibilities frontier being curved outwards?
It suggests no opportunity costs
It represents decreasing opportunity costs
It shows increasing opportunity costs
It indicates constant opportunity costs
What would cause a production possibilities frontier to shift to the right?
A decrease in resources
Economic growth
An increase in exports
An increase in government regulations
Which economic law explains increasingly expensive trade-offs?
Law of diminishing returns
Law of supply
Law of demand
Law of increasing costs
Because the innovation and use of technology is important for efficient production, nations will often invest in what?
Education and training
Military and defense
Agriculture and farming
Arts and culture
