WorksheetsEconomic Final Review 2025
Total questions: 40
Worksheet time: 20mins
Scarcity means that resources are limited while wants are unlimited.
True
False
Opportunity cost is the value of the worst choice you could have made.
True
False
Labor includes both mental and physical effort in the production process.
True
False
Capital only refers to money used in business.
True
False
Entrepreneurs take risks and innovate to start and manage businesses.
True
False
The circular flow model shows how goods, services, and money move between businesses and households.
True
False
In a market economy, the government decides what to produce and for whom.
True
False
If the price of a good goes up, demand for that good will typically go up too.
True
False
A substitute good can replace another good if its price becomes more attractive.
True
False
An increase in consumer income can lead to an increase in demand for goods.
True
False
Technology usually makes production more expensive and less efficient.
True
False
A decrease in supply typically causes prices to rise.
True
False
The law of supply says that producers will offer more of a good if its price rises.
True
False
Complementary goods are used together, like peanut butter and jelly.
True
False
In the circular flow, households earn income by providing land, labor, and capital to firms.
True
False
Insurance always eliminates all financial risks.
True
False
Paying a deductible is required before insurance coverage applies.
True
False
Philanthropy is only about donating money.
True
False
Renting a home builds equity over time.
True
False
Giving to charity can positively impact communities.
True
False
What is one primary benefit of purchasing insurance?
Guaranteed investment returns
Avoiding all financial risks
Peace of mind and financial protection
Elimination of deductibles
What is a potential cost associated with buying insurance?
Increased asset value
Lower monthly premiums
Deductibles and co-pays
Enhanced personal well-being
The value of the next best alternative when a decision is made is called:
Scarcity
Profit
Opportunity cost
Trade-off
Which of the following is an example of a capital resource?
A forest
A worker's skill
A factory machine
A business owner
What is scarcity in economics?
A surplus of goods
Unlimited resources
Limited resources and unlimited wants
No consumer interest
Which of the following is NOT a factor of production?
Labor
Money
Capital
Entrepreneurship
What does the circular flow model illustrate?
Only government spending
How goods and money move through the economy
The production of one company
A closed economy
In the circular flow, households provide what to firms?
Goods
Money
Factors of production
Final products
What happens when the price of a product increases, according to the law of supply?
Quantity supplied decreases
Quantity demanded increases
Quantity supplied increases
Demand remains the same
What is a substitute good?
A luxury item
A cheaper product replacing another
A raw material
A fixed input
What is an advantage of renting a home?
Building equity
Stable monthly payments
Flexibility to move
Tax benefits
What is typically a cost associated with buying a home?
Security deposit
Property taxes
Monthly rent
Landlord maintenance
What is a disadvantage of buying a house?
Ability to customize
Fixed monthly payments
Limited mobility
No potential for investment gain
Why might someone choose a used car over a new one?
To get a manufacturer’s warranty
To avoid depreciation loss
To ensure advanced safety features
To avoid maintenance costs
What is a key characteristic of a sole proprietorship?
Shared liability
Double taxation
Full control by a single owner
Ability to issue stocks
How are sole proprietorships taxed?
Corporate tax rates
Partnership tax rates
Personal income tax rates
Exempt from taxes
What is an advantage of a partnership?
Full control
Limited liability
Shared responsibility and expertise
Double taxation
Who has unlimited liability in a general partnership?
All partners
Only managing partners
Only silent partners
No partners
What is a key characteristic of a corporation?
Owned by a single person
Limited liability for shareholders
Pass-through taxation
No regulatory requirements
How do corporations raise capital?
Through personal savings
By selling stock
By relying on a single investor
By reducing liabilities
