WorksheetsEconomics Quiz Review
Total questions: 33
Worksheet time: 21mins
Economics is the study of how people use __________ resources to satisfy __________ wants.
Which of the following is an example of a trade-off?
Buying both a sandwich and a salad
Choosing to study instead of watching TV
Using unlimited resources for unlimited wants
A “free lunch”
Which type of economics describes what is (fact-based)?
Normative economics
Positive economics
Marginal economics
Market economics
Which of the following is an incentive?
A prize for winning a contest
A fine for parking illegally
A discount coupon at a store
All of the above
Adam Smith’s concept of the “invisible hand” refers to:
Government control of resources
The way free markets coordinate trade
The hidden costs of decisions
A tool for marginal analysis
Which principle states that decisions have both immediate and long-term effects?
Thinking at the Margin
Future Consequences Count
Incentives Matter
Scarcity Forces Trade-offs
A rational decision compares:
Supply and demand
Marginal costs and marginal benefits
Goods and services
Wants and shortages
The Production Possibilities Curve (PPC) illustrates:
Unlimited resources in an economy
Choices and opportunity costs of production
How much consumers demand at a price
The business cycle
During the contraction phase of the business cycle:
GDP increases and unemployment decreases
GDP decreases and unemployment increases
Inflation rises quickly
There is no impact on the economy
Which policy is used by government to influence the economy through spending and taxes?
Expansionary policy
Fiscal policy
Monetary policy
Trade policy
Scarcity means resources are limited but wants are unlimited.
True
False
“There’s no such thing as a free lunch” refers to the idea that all choices involve costs.
True
False
Normative economics is based on facts and data.
True
False
Incentives can only be positive (rewards).
True
False
Specialization and trade usually make people better off.
True
False
A shortage occurs when a good or service is unavailable at current prices.
True
False
Underutilization means an economy is using all its resources efficiently.
True
False
The unemployment rate measures the percentage of jobless people who are not looking for work.
True
False
Inflation is characterized by steadily rising prices.
True
False
A depression is a mild downturn in the business cycle that lasts only a few months.
True
False
What happens when there is too much money and too few goods/products?
Prices go lower?
Recession
economics
inflation
What type of resources are these?
capital
natural
nautical
human
These are examples of ________________ resources.
capital
natural
scarce
human
If 5 people want an ice-cream, is there a scarcity?
Yes, there is a scarcity.
No, there is not a scarcity.
If 6 people want a pencil, is there a scarcity?
Yes, there is a scarcity.
No, there is not a scarcity.
What kinds of resources are shown in this picture?
natural and capital resources
human and capital resources
human and natural resources
capital and product resources
Which item is a capitol resource?
a truck
milking a cow
wheat plants
knowing how to plant crops
What two qualities that work together to regulate the marketplace are present in this photo of two cellphone service providers?
innovation and specialization
efficiency and underutilization
competition and self-interest
opportunity and efficiency
Who would you say is the ultimate example of a Consumer?
ME
YOU
YOUR NEIGHBOR
EVERYBODY
Why do businesses spend money to invent things?
to save money for later
to put money in the bank
to help fix broken down machines
to make new and better goods to sell
