WorksheetsChapter 3 Test - Understanding Characteristics of Economics
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
Scarcity means unlimited resources.
a)
True
b)
False
2.
Opportunity cost is what you give up when making a choice.
a)
True
b)
False
3.
Supply means how much customers want to buy.
a)
True
b)
False
4.
Demand means how much businesses want to sell.
a)
True
b)
False
5.
Mixed economies combine elements of market and command.
a)
True
b)
False
6.
Which is an example of scarcity?
a)
New iPhone
b)
Unlimited gas
c)
Drought limiting crops
d)
Free internet
7.
Opportunity cost is…
a)
Free choices
b)
The next best thing you give up
c)
Government control
d)
Equilibrium price
8.
Supply increases when prices…
a)
Rise
b)
Drop
c)
Stay the same
d)
Are free
9.
When price increases, demand usually:
a)
Stays the same
b)
Decreases
c)
Increases
d)
Disappears completely
10.
Equilibrium price is where:
a)
Demand is zero
b)
Supply is zero
c)
Quantity supplied equals quantity demanded
d)
Government sets price
11.
Which is true of a market economy?
a)
Decisions made by individuals and businesses
b)
Government sets all prices
c)
Based on tradition only
d)
No private ownership
12.
A key feature of a command economy is:
a)
Competition sets prices
b)
Government makes most economic decisions
c)
Barter replaces money
d)
No central planning
13.
A traditional economy is based on:
a)
Stock markets
b)
Government quotas
c)
Customs and long-held practices
d)
App-based selling
14.
A mixed economy:
a)
Has no private businesses
b)
Has no government role
c)
Combines market forces with some government involvement
d)
Is the same as a command economy
15.
Which could cause a shortage?
a)
Price above equilibrium
b)
Price below equilibrium
c)
Decrease in demand
d)
Surplus of goods
16.
A surplus usually pushes price:
a)
Up
b)
Down
c)
To zero
d)
Unchanged
17.
In a market economy, prices mainly:
a)
Are chosen randomly
b)
Signal information to buyers and sellers
c)
Are always set by the government
d)
Never change
18.
Which statement about opportunity cost is best?
a)
It is the money you earn.
b)
It is the next best alternative you give up.
c)
It equals total revenue.
d)
It only applies to businesses.
19.
In a market economy, most production decisions are made by:
a)
Courts
b)
The military
c)
Private firms and consumers
d)
Foreign governments
20.
Which example shows demand decreasing when price rises?
a)
Lower price, more purchased
b)
Higher movie ticket price, fewer moviegoers
c)
Same price, same purchases
d)
Higher price, more purchases
21.
The study of how resources are used is called ______.
a)
Economics
b)
Geography
c)
Biology
d)
Chemistry
22.
Limited resources vs unlimited wants is ______.
a)
Scarcity
b)
Abundance
c)
Equilibrium
d)
Surplus
23.
The cost of giving up one choice is ______.
a)
Opportunity Cost
b)
Fixed Cost
c)
Marginal Benefit
d)
Sunk Cost
24.
______ is the amount businesses will sell at a price.
a)
Supply
b)
Demand
c)
Revenue
d)
Profit
25.
______ is the amount customers will buy.
a)
Demand
b)
Supply
c)
Revenue
d)
Profit
26.
The price where supply = demand is ______.
a)
Equilibrium Price
b)
Market Ceiling
c)
Surplus Price
d)
Subsidy Price
27.
A ______ economy is based on traditions.
a)
Traditional
b)
Market
c)
Command
d)
Mixed
28.
A ______ economy is controlled by government.
a)
Command
b)
Market
c)
Traditional
d)
Mixed
29.
The U.S. has a ______ economy.
a)
Mixed
b)
Traditional
c)
Command
d)
Barter
30.
Decisions in a market economy are made by ______.
a)
Individuals/businesses
b)
The government
c)
Aliens
d)
Robots
100 %
