WorksheetsEcon 2.2 (2025)
Total questions: 25
Worksheet time: 13mins
A system created to allocate scarce resources is called a(n)
economy
substitute
nation
mode
One of the main ways the US economy allocates scarce resources-- the preferred one by most economists-- is
the price system
central government authority
pure democracy
lottery
The two most scarce resources are
time, attractive people
time, money
money, government regulation
money, happiness
Scarce items (resources, final products) that you can feel and touch- that are tangible- are known as
services
goods
normative
positive
What is a characteristic of inputs?
Scarce
Abundant
Unlimited
Infinite
What are economists obsessed with (think the bookmaking activity)?
ties and nerd glasses
taxes and subsidies
productivity and efficiency
supply and demand
Which of the following would have a higher utility?
baseball glove for a baseball player
snow shovel for a resident in Florida
studying instead of gaming for a "gamer."
eating enough pizza to throw up
What is the concept involved in this scenario: You can make a plane or a fan.
tradeoffs
margin
markets
utility
If an economy was at point "A" we would say
it is at an unattainable point
it is efficient
it has unemployed resources and is inefficient
product B is being produced more than product A.
The opportunity cost of moving from point B to point A on the PPF is
Production of product A
Production of product B
Point X expansion to B
Point Y, beyond the PPF
Which of the following is where one should stop (think Tennis Ball Factory experiment)?
MB = MC
MB > MC
MB < MC
K = F + C
What would cause an inward shift?
COVID lockdown
Immigration from other countries
Trade Agreements with other countries
Development of Human Capital
When Milton Friedman said "there is no such thing as a free lunch" he was referring to
the high price of eating out
there is a cost be every decision we make
The dollar cost is hidden in various situation
It's game day
Land, Labor, Capital, and entrepreneurship (enterprise) are
the factors of production
inputs
scarce
all of the other choices are correct
You purchased $500 Taylor Swift tickets from someone on Facebook marketplace, but it turns out the tickets were fake. You're deciding whether to purchase real tickets. Are the fake tickets a sunk cost?
Yes. It is a sunk cost.
No. It is NOT a sunk cost
Which of the following explains why scarcity exists in all societies?
There is inefficiency in getting products to those who want them.
Population has grown faster than production has.
People’s wants are unlimited and resources are limited.
Governments buy too many services and goods, leaving little for consumers.
What is "opportunity cost"?
the value of the next best choice
the decision to produce a particular good or service
the best choice
the decision to expand capital formation
Which of the following would not be classified as capital?
a computer
a taxi cab
tools and machinery
iron ore
Petroleum is included in which of the classifications of the factors of production?
land
labor
capital
entrepreneurship
Points outside the production possibilities curve (F) are not attainable in a market economy due to what reason?
The economy does not currently have the resources and/or technology to produce at this level.
The government will not allow production at this level.
There is not enough demand to produce at this level.
The economy has enough resources and/or technology, but is currently in a period of recession.
Which of the following changes in an economy would shift the Production Possibilities Curve to the right?
A decrease in resources and/or technology in the ability to produce.
A decrease in the quality of goods produced.
An increase in resources and/or technology in the ability to produce.
An increase in taxes on businesses.
What economic concept is being described in this scenario: "A group of students decides to go to McDonalds rather than KFC."
production possibilities curve
costs and benefits
trade-off
elasticity
Which of the following is an opportunity cost of him going running instead of going to dinner?
the weight loss from running
the money spent on shoes to go running
the cost of dinner
the time spent with his friends at dinner
Which of the following terms best matches this situation: "After eating his 10th doughnut Homer begins to get sick of eating doughnuts."
Markets Coordinate Trade
Diminishing Marginal Utility
Law of Demand
Law of Supply
Enjoyment gained during an activity can be measured by which of the following
marginal cost
utility
opportunity cost
trade-off
