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WorksheetsYear 10 First Term Economics CA Test Question
Total questions: 90
Worksheet time: 45mins
Economics is best defined as the study of:
Wealth creation only
How society manages scarce resources
Financial systems and banking
Production of goods only
The problem of scarcity arises because:
Resources are unlimited
Human wants are unlimited
Money supply is fixed
Goods are abundant
Opportunity cost is:
The total cost of production
The value of the next best alternative forgone
The price of a good in the market
The profit from an investment
Which of the following is a basic economic problem?
How to advertise goods
For whom to produce
Where to sell products
When to consume goods
Microeconomics deals with:
National income and output
Individual economic units like firms and households
Government fiscal policies
International trade balances
Macroeconomics is concerned with:
The price of a single commodity
The behavior of individual consumers
The economy as a whole
The production process of a firm
Which of these is a factor of production?
Demand
Capital
Market
Price
The reward for land as a factor of production is:
Wage
Rent
Profit
Interest
Labour as a factor of production refers to:
Physical and mental effort of humans
Machinery used in production
Natural resources
Financial investment
The scale of preference helps individuals to:
Increase their income
Prioritize their wants
Produce more goods
Reduce production costs
The law of demand states that:
As price increases, quantity demanded increases
As price decreases, quantity demanded increases
Price and quantity demanded are unrelated
Demand remains constant regardless of price
Which of these is a determinant of demand?
Cost of production
Consumer income
Technology
Government subsidies
The supply of a commodity is influenced by:
Consumer preferences
Price of the commodity
Population size
Taste and fashion
Production in Economics means:
Buying and selling goods
Creating utility to satisfy wants
Distributing income
Consuming resources
Which of the following is an example of direct production?
A farmer growing crops for his family
A factory producing cars for sale
A teacher providing education services
A bank offering loans
Indirect production involves:
Producing goods for personal use
Producing goods for exchange or sale
Consuming goods directly
Storing goods for future use
Division of labour leads to:
Increased monotony
Reduced productivity
Decreased specialization
Lower efficiency
An advantage of division of labour is:
Reduced skill development
Increased productivity
Higher production costs
Unemployment
A mixed economic system is characterized by:
Complete government control
Private ownership only
A combination of public and private ownership
Absence of economic planning
In a capitalist economy, resource allocation is determined by:
Government policies
Market forces
Traditional leaders
Central planning
The reward for entrepreneurship is:
Interest
Wage
Profit
Rent
A normal good is one where:
Demand decreases as income increases
Demand increases as income increases
Demand is unaffected by income
Demand decreases as price decreases
Which of these is a characteristic of a free market economy?
Government controls all prices
Private individuals make economic decisions
Resources are allocated by tradition
No competition exists
The term "utility" in Economics refers to:
The cost of production
The satisfaction derived from consuming a good
The price of a commodity
The quantity of goods produced
Which factor of production is considered a natural resource?
Labour
Capital
Land
Entrepreneur
A demand curve slopes downward because of:
The law of supply
The law of demand
The law of diminishing returns
The law of production
Which of the following affects the supply of agricultural products?
Fashion trends
Weather conditions
Consumer tastes
Population growth
Specialization in production leads to:
Reduced efficiency
Increased interdependence
Lower output
Higher costs
In a socialist economy, resources are primarily allocated by:
Market forces
Government planning
Individual preferences
Traditional customs
An example of a capital good is:
A loaf of bread
A factory machine
A pair of shoes
A haircut
The term "wants" in Economics refers to:
Basic needs like food and water
Human desires that are unlimited
Resources available in abundance
Goods produced for export
A substitute good is one that:
Complements another good
Can be used in place of another good
Is produced using the same resources
Has no relation to other goods
The main goal of an economic system is to:
Maximize government revenue
Solve the problem of scarcity
Increase population growth
Promote cultural values
Which of these is a feature of a traditional economy?
Use of advanced technology
Decisions based on customs and traditions
High level of industrialization
Free market competition
The law of supply states that:
As price increases, quantity supplied decreases
As price decreases, quantity supplied increases
As price increases, quantity supplied increases
Supply is unaffected by price
Which of the following is a renewable resource?
Coal
Timber
Crude oil
Natural gas
The term "division of labour" refers to:
Sharing profits among workers
Breaking down production into specialized tasks
Producing goods for personal use
Allocating resources equally
A disadvantage of a mixed economy is:
Lack of competition
Inefficiency due to conflicting policies
Absence of private ownership
Complete government control
The concept of "ceteris paribus" in Economics means:
All things being equal
Unlimited resources
Constant production
Equal distribution of goods
Which of the following is an example of an economic good?
Air
Water in a river
A smartphone
Sunshine
All human creations used to produce goods and services; for example, factories, trucks, and machines.
Laobor
Entrepreneurship
Capital
Human Resource
Incremental, additional, extra, or one more; refers to a change in an economic variable, a change in the status quo.
Marginal Analysis
Tradeoff
Opportunity Cost
Ration Sel-Interest
A simplification of economic reality used to make predictions about the real world.
Economic theory
Economic Assumption
Economics
Economic Choice
So-called "gifts of nature" used to produce goods and services; includes both renewable and exhaustible resources.
Productive Resource
Human Resource
Capital Resource
Natural resources
A profit-seeker who develops new product or process and assumes the risk of profit or loss.
Profiteer
Entrepreneur
Salesman
Venture Capitalist
The physical and mental effort used to produce goods and services.
Labor
Capital
Land
Scarcity
The broad category of human efforts, both physical and mental, used to produce goods and services.
Productive Resource
Capital Resource
Trade-Off
Human resource
The inputs used to produce the goods and services that people want.
Human Resource
Entrepreneur
Productive Resource
Capital
The study of how people use their scarce resources to satisfy their unlimited wants.
Scarcity
Economics
Microeconomics
Macroeconomics
A condition facing all societies because there are not enough productive resources to satisfy people's unlimited wants.
Economics
Trade-Off
Choice
Scarcity
The measure of how well people live in a country
Tariff
Quota
Embargo
Standard of living
A ban on trade with a specific nation or group of nations
Tariff
Quota
Embargo
Standard of living
A limit on the quantity of an item brought into a country
Tariff
Quota
Embargo
Standard of living
A tax placed on imported goods
Tariff
Quota
Embargo
Standard of living
To convert money from one currency to another; how much one currency is worth when compared to another.
Specialization
Exports
Imports
Exchange rate
The goods and services sold and shipped to other countries and regions.
Specialization
Exports
Imports
Exchange rate
The goods and services bought and brought in from other countries.
Specialization
Exports
Imports
Exchange rate
Occurs when a country focuses its resources on producing a limited variety of goods and services.
Specialization
Exports
Imports
Exchange rate
The percentage of adults who can read and write in a country.
GDP per capita
GDP growth rate
Gross Domestic Product
Literacy rate
The percent increase in GDP from one year to the next.
GDP per capita
GDP growth rate
Gross Domestic Product
Literacy rate
A country’s GDP divided by its total population.
GDP per capita
GDP growth rate
Gross Domestic Product
Literacy rate
The total value of goods and services produced in one year.
GDP per capita
GDP growth rate
Gross Domestic Product
Literacy rate
Organization of ideas and resources for production
Capital goods
Entrepreneurship
Human capital
Natural resources
Factories, machinery, and technology
Capital goods
Entrepreneurship
Human capital
Natural resources
Skills, knowledge, and education of workers
Capital goods
Entrepreneurship
Human capital
Natural resources
Raw materials from the earth
Capital goods
Entrepreneurship
Human capital
Natural resources
The country’s market economy has varying amounts of government control.
Traditional economy
Market economy
Command economy
Mixed economy
Producers and consumers determine how to use resources and make goods based on supply and demand.
Traditional economy
Market economy
Command economy
Mixed economy
People use the resources they have to only make what they need to survive.
Traditional economy
Market economy
Command economy
Mixed economy
The government plans how to use resources and make goods and services.
Traditional economy
Market economy
Command economy
Mixed economy
What factors should you consider when thinking about who your target audience is?
Age
Location
Special Interests or Hobbies
How much money they have
How does market research help you understand the competition?
Choose all that apply!
Demonstrates how your product or service is better than your competition
Discover who their target audience is
Determine the price your competition is charging for their product or service
Consider what the competition's products or services do
Why is it important to carefully consider the target audience for your product or service?
To understand what the competition is doing
In order to know where to best manufacture the product
So you know who is most likely to purchase your product or service
So you know that your product is solving a problem.
How does competition affect a market economy? Choose all that apply.
Encourages innovation and improved products or services.
Limits the amount of profit a company can earn.
Influences what price a company can charge for their goods or services.
Allows people to barter for goods and services with anyone they want.
How do entrepreneurs benefit a market economy? Choose the two best statements.
Increases employment
Raises taxes for everyone.
Limits innovation.
Increases competition
A person who is innovative in creating a business that fills a need by providing a good or service is called an _____.
CFO
CEO
President
Entrepreneur
If the price of a good or product increases, how will consumers react?
They will continue to buy that good.
They will buy twice as much of that good.
They will find a similar good that has a lower price.
They will start a protest.
Beans! Everyone loves beans! What will happen to the price of beans if the supply remains the same, but demand begins to go up?
Increase
Stay the same
Decrease
_____ is the amount of a good or product that consumers want.
Demand
Supply
Price
Business Plan
_____ is the amount of a good or product that is available.
Demand
Supply
Price
Economics
In this type of economy, supply and demand help businesses earn a profit.
Traditional
Command
Market
In this type of economy, businesses compete with each other to make a profit.
Traditional
Command
Market
_____ is the study of how people manage limited resources to satisfy their wants and needs.
Economics
Supply
Demand
Business Plan
In this type of economy, businesses are not created to make a profit, only to meet a quota.
Traditional
Command
Market
In this type of economy, jobs usually relate to the family or are passed down by the parents to their children.
Traditional
Command
Market
In this type of economy, there is no competition between businesses.
Traditional
Command
Market
In this type of economy, technology and money do not play a significant role.
Traditional
Command
Market
In this type of economy, the government makes all of the economic decisions.
Traditional
Command
Market
In this type of economy, people barter to obtain goods and services they need.
Traditional
Command
Market
In this type of economy, economics decisions are made by individuals and businesses.
Traditional
Command
Market
