WorksheetsEconomics Chapter 1 Review
Total questions: 26
Worksheet time: 13mins
What is the best definition of a "need"?
Something you would like to have
Something you must have for survival
A luxury item
A non-essential item
Which of the following is an example of a "want"?
Food
Water
Shelter
Smartphone
Which of the following is a "good"?
A haircut
A car
A legal consultation
House cleaning
Which of the following is an example of a "service"?
A book
A meal
A car wash
A computer
"Scarcity" refers to the concept that:
Resources are unlimited
There is not enough of something for everyone
Prices are always high
Only luxury goods are hard to find
Economics is the study of:
Wealth accumulation
Human behavior
How societies manage their scarce resources
Stock markets
What is a "shortage"?
A long-term scarcity of resources
A temporary lack of supply
A situation where demand exceeds supply permanently
An oversupply of goods
An "entrepreneur" is someone who:
Works for someone else
Starts and runs their own business
Manages government projects
Is a skilled laborer
Which of the following are the "factors of production"?
Labor, goods, services, capital
Land, labor, capital, entrepreneurship
Resources, scarcity, capital, needs
Goods, services, trade-offs, opportunity costs
"Land" in economic terms refers to:
The physical space where production happens
All natural resources used to produce goods and services
The value of property
Urban areas
"Labor" in economic terms is:
The money invested in a business
The human effort used in production
The land used for agriculture
The tools used in manufacturing
"Capital" in economic terms includes:
Natural resources
Human-made resources used in production
Services provided to customers
The labor force
"Physical capital" is:
The education and skills of workers
The physical effort of workers
The physical assets used in production, like machinery
Financial investments
"Human capital" refers to:
Money invested in the stock market
The physical assets of a company
The knowledge and skills a worker gains through education and experience
Natural resources
A "trade-off" involves:
The act of giving up one benefit in order to gain another
The decision to not make any choices
The process of buying and selling goods
A situation where there are no costs involved
The concept of "guns or butter" refers to:
A) A choice between consumer goods and military spending
B) A debate about weapon control
C) The decision between agriculture and manufacturing
D) A method of conflict resolution
"Opportunity cost" is best defined as:
The total cost of a project
The benefit of the next best alternative given up when a choice is made
The profit earned from an investment
The price of a good or service
"Thinking at the margin" involves:
Making all-or-nothing decisions
Considering small incremental changes in decision-making
Ignoring the costs of production
Making decisions without considering benefits
A "cost/benefit analysis" is:
The calculation of total revenue
A comparison of the costs and benefits of a decision
A method of increasing production
An economic theory with no real-world application
"Marginal cost" refers to:
The total cost of producing a good
The additional cost of producing one more unit of a good
The average cost of all units produced
The initial investment in production
"Marginal benefit" is:
The total benefit of all units produced
The benefit gained from producing one more unit of a good
The benefit gained from the last unit produced
The difference between total cost and total benefit
The "production possibilities curve" (PPC) illustrates:
The relationship between supply and demand
The trade-offs between two different goods or services that can be produced
The total output of an economy
The effects of inflation on production
The "production possibilities frontier" (PPF) represents:
The total resources available in an economy
The maximum possible output of an economy given its resources and technology
The minimum possible output of an economy
The boundary between efficient and inefficient production
"Efficiency" in economics means:
Producing goods at the lowest cost possible
Allocating resources in such a way that maximizes production and minimizes waste
Keeping unemployment at zero
Achieving economic equality for all citizens
"Underutilization" occurs when:
Resources are fully employed
Resources are not being used to their full potential
The economy is operating on the PPF
There is an oversupply of goods
The "law of increasing costs" states that:
As production increases, the opportunity cost of producing an additional unit rises
The cost of production always decreases over time
The total cost of production remains constant regardless of output
Marginal costs are always lower than average costs
