WorksheetsThinking Like an Economist Review
Total questions: 37
Worksheet time: 19mins
Name
Class
Date
1.
What is the study of how people make decisions based on their unlimited wants and limited resources called?
a)
Psychology
b)
Sociology
c)
Anthropology
d)
Economics
2.
What concept is economics based on?
a)
Abundance
b)
Scarcity
c)
Equality
d)
Diversity
3.
What does economics observe about people?
a)
How people develop language skills
b)
How people make choices and organize data
c)
How people express emotions
d)
How people interact socially
4.
What is the fundamental economic problem facing all societies?
a)
Inflation
b)
Unemployment
c)
Surplus
d)
Scarcity
5.
What is scarcity?
a)
When resources are more than what is needed
b)
When resources are equal to what is needed to meet human wants
c)
When resources are irrelevant to human wants
d)
When resources are less than what is needed to meet human wants
6.
Who does scarcity affect?
a)
Only individuals
b)
Only businesses
c)
Only governments
d)
Individuals, businesses, governments, and societies
7.
Is scarcity a temporary or ongoing situation?
a)
Uncommon
b)
Temporary
c)
Ongoing
d)
Rare
8.
What is scarcity caused by?
a)
A shortage of resources
b)
An abundance of resources
c)
An abundance of money
d)
A shortage of money
9.
What is NOT a cause of scarcity?
a)
A shortage of resources
b)
High demand
c)
Limited consumer choices
d)
A shortage of money
10.
Why must choices constantly be made according to the concept of choice?
a)
Because consumers have limited desires
b)
Because producers have fixed needs
c)
Because resources are abundant
d)
Because wants are unlimited and always changing
11.
How does scarcity affect consumers and producers?
a)
It increases their resources
b)
It affects the choices they make
c)
It has no effect on choices
d)
It makes resources abundant
12.
Which of the following is one of the three questions to manage scarcity?
a)
How to distribute wealth?
b)
What to produce and how much?
c)
How to produce it?
d)
Why to produce it?
13.
Who is the target audience for the production according to the three questions to manage scarcity?
a)
How is it distributed?
b)
When is it produced?
c)
Why is it produced?
d)
Who is it produced for?
14.
Which resources partially determine what to produce and how much in a society?
a)
The amount of rainfall in a year
b)
The number of holidays in a year
c)
The number of schools in a society
d)
The natural resources a society possesses
15.
In most countries, what determines what to produce and how much?
a)
The weather conditions
b)
The number of factories
c)
Consumer demands and wants
d)
The size of the population
16.
In some countries (communist & socialist), what determines what to produce and how much?
a)
The local businesses
b)
The international market
c)
The government
d)
Educational institutions
17.
What is the production process largely based on?
a)
Cost of labor
b)
Market demand
c)
Government policies
d)
Efficiency of production
18.
What is a key difference in production methods between a society with an unskilled workforce and a society with a skilled workforce?
a)
Unskilled workforce uses high tech machinery, skilled workforce uses simple farming methods.
b)
Both use high tech machinery.
c)
Both use simple farming methods.
d)
Unskilled workforce uses simple farming methods, skilled workforce uses high tech machinery.
19.
What systems must be developed to DISTRIBUTE goods effectively?
a)
Factories, farms, offices, banks
b)
Houses, apartments, hotels, motels
c)
Schools, hospitals, parks, libraries
d)
Roads, airports, ships, railways
20.
What do the factors of production (FOP) provide for a society?
a)
The means to consume goods and services
b)
The means to produce and distribute goods and services
c)
The means to export goods and services
d)
The means to import goods and services
21.
What are considered natural resources found on or below the earth's surface used to produce goods and services?
a)
Human labor and capital
b)
Manufactured goods and services
c)
Water, natural wildlife, forests, minerals, and oil
d)
Urban infrastructure and technology
22.
What does 'labor' refer to in the context of production?
a)
All financial investments in production
b)
All human expertise, effort, and time used for production
c)
All natural resources used in production
d)
Human labor and skills
23.
What is considered as capital in production?
a)
Natural resources like water and minerals
b)
Resources made by humans like tools and machinery
c)
All machinery and tools used in production
d)
Financial investments like stocks and bonds
24.
Which of the following is an example of physical capital?
a)
A government policy
b)
A company's brand reputation
c)
A factory building
d)
An employee training program
25.
What is human capital?
a)
Natural resources
b)
Money used for investment
c)
Experience that results in knowledge and skills
d)
Physical tools and equipment
26.
Which of the following is an example of capital goods?
a)
Money used for investment
b)
Physical tools and equipment
c)
Natural resources
d)
College degree
27.
What does financial capital refer to?
a)
Natural resources
b)
Experience and skills
c)
Physical tools and equipment
d)
Money used for investment
28.
What is one of the key roles of entrepreneurship?
a)
To create a business through vision, skill, creativity, and innovation
b)
To manage only the financial aspects of a business
c)
To focus solely on marketing strategies
d)
To handle customer service exclusively
29.
What resources do entrepreneurs use to satisfy consumer wants?
a)
Land, labor, and capital
b)
Marketing and advertising
c)
Technology and software
d)
Social media and networking
30.
What role do entrepreneurs play in the American economy?
a)
They are the financial support
b)
They are the regulatory body
c)
They are the educational leaders
d)
They are the driving force
31.
What is used to decide what the economy should produce?
a)
Government policies
b)
Market economies use price
c)
Availability of resources
d)
Consumer preferences
32.
How is the method of producing goods/services determined?
a)
Government regulations
b)
Consumer demand
c)
Technological advancements
d)
The price of the Factors of Production
33.
What limits the choices and decisions of consumers regarding who should receive the goods/services produced?
a)
Government intervention
b)
Cultural factors
c)
Income
d)
Market competition
34.
What is the primary measure of production in an economy?
a)
Gross Domestic Product (GDP)
b)
Balance of Trade
c)
Unemployment Rate
d)
Consumer Price Index (CPI)
35.
What does GDP stand for?
a)
Gross Development Product
b)
Global Domestic Product
c)
General Domestic Product
d)
Gross Domestic Product
36.
What does GDP represent?
a)
The market value of all goods and services produced in a nation's economy during a given time
b)
The total exports of a nation
c)
The total imports of a nation
d)
The average income of citizens
37.
For a consumer, which is part of making an economic choice?
a)
The consumer weighs his or her needs and wants before spending money.
b)
The consumer purchases everything he or she needs or wants.
c)
The consumer moves to a place that has very few businesses.
d)
The consumer makes goods and services to sell to others.
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