WorksheetsFundamentals of Economics Quiz
Total questions: 30
Worksheet time: 25mins
Which of the following BEST describes the fundamental economic problem?
The stock market is unpredictable.
Unlimited wants and needs with limited resources.
The government prints too much money.
Some people are rich and others are poor.
What is the difference between scarcity and shortage?
Scarcity is a temporary lack of goods, while a shortage is a permanent condition.
Scarcity is a permanent condition, while a shortage is a temporary lack of goods.
Scarcity and shortage are the same thing.
Scarcity only applies to developing countries, while shortages can happen anywhere.
Which of the following is an example of a 'need'?
A new car
A smartphone
A place to live
A vacation
The opportunity cost of a decision is:
The money you spend on the decision.
The time you waste making the decision.
The most desirable alternative you give up.
The total value of all the alternatives you didn't choose.
Which of the following is NOT one of the four main factors of production?
Land
Labor
Money
Capital
A factory building is an example of which factor of production?
Land
Labor
Physical Capital
Human Capital
An assembly line worker is an example of which factor of production?
Land
Labor
Capital
Entrepreneurship
In a command economy, who answers the three basic economic questions?
The consumers
The producers
The government
The market
Which of the following is a characteristic of a market economy?
Central planning by the government.
Government ownership of all resources.
Economic decisions are based on customs and traditions.
Private ownership of property and resources.
The United States has which type of economic system?
Command
Market
Mixed
Traditional
A rational decision occurs when:
The marginal benefits are less than the marginal costs.
The marginal benefits are greater than or equal to the marginal costs.
The opportunity cost is zero.
The decision is made quickly without much thought.
A positive incentive is:
A punishment for an action.
A reward for an action.
A neutral consequence of an action.
A tax on a good or service.
Which of the following is an example of a negative incentive?
A bonus at work.
A good grade on a test.
A fine for speeding.
A discount on a product.
The 'what to produce' question in economics is about:
How to make goods and services.
Who gets the goods and services.
What goods and services will be made.
Where to sell the goods and services.
The 'how to produce' question in economics is about:
The methods used to make goods and services.
The price of the goods and services.
The demand for the goods and services.
The advertising for the goods and services.
The 'for whom to produce' question in economics is about:
The people who will consume the goods and services.
The people who will make the goods and services.
The government's role in the economy.
The resources used to make the goods and services.
Which of the following is an example of a public good?
A private school
A movie theater
A national park
A shopping mall
What is the goal of specialization?
To make workers self-sufficient.
To increase the efficiency of production.
To reduce the number of goods produced.
To eliminate the need for trade.
Voluntary exchange is:
When two parties are forced to trade with each other.
When two parties willingly trade with each other.
When one party benefits from a trade at the expense of the other.
When the government regulates all trade.
A production possibilities curve (PPC) shows:
The relationship between the price and quantity of a good.
The different combinations of two goods that can be produced with a given set of resources.
The total output of an economy over time.
The level of unemployment in an economy.
(a) is the basic economic problem of having unlimited wants but limited resources.
The most desirable alternative given up as the result of a decision is known as the __________.
The four factors of production are land, labor, (a) , and entrepreneurship.
(a) are the things that motivate people to act in a certain way.
Physical objects such as clothes or shoes are known as (a) .
Actions or activities that one person performs for another are known as (a) .
The process of distributing resources is called (a) .
The risk-taking and innovation involved in starting a business is known as __________.
Explain how a decision to go to college has an opportunity cost.
Choose one of the economic goals (freedom, security, equity, growth, efficiency, or stability) and explain why a country might prioritize it.
