WorksheetsExploring Economics - FBLA 1
Total questions: 113
Worksheet time: 57mins
What is a good in economics?
A task performed to satisfy needs
A physical object that can be bought or sold
A process that creates value
A type of money
Which of the following is an example of a good?
A haircut
A car
A doctor's appointment
A concert
Which of the following is an example of a service?
A book
A piece of clothing
A haircut
A smartphone
Which of the following is NOT an example of a good?
A television
A bag of groceries
A movie
A bicycle
A key difference between goods and services is that goods are:
Tangible and can be touched
Intangible and cannot be touched
Not produced
Available only for a limited time
Which of the following is an example of a tangible good?
An online class
A pair of shoes
A concert performance
A flight ticket
Which of the following is an example of a service?
A loaf of bread
A taxi ride
A backpack
A television
Which of the following is a characteristic of services?
They can be stored for later use
They are typically intangible
They last forever
They can be seen and touched
Which of the following is NOT a characteristic of a good?
Tangible
Can be used over time
Produced and stored
Cannot be touched
Which of the following would be considered a service provided by a professional?
A car
A dentist’s visit
A bicycle
A table
Which of the following is a service that requires human labor?
A box of cereal
A haircut
A smartphone
A bicycle
What do goods and services have in common?
They both are tangible
They both can be stored for later use
They both satisfy people's needs and wants
They both require human labor to produce
Which of the following is an example of a service that can be consumed immediately?
A sandwich from a restaurant
A book
A laptop
A pair of shoes
Which of the following is an example of a service that provides entertainment?
A movie theater ticket
A bicycle
A meal at a restaurant
A piece of furniture
A good is something that can be:
Used once and then discarded
Bought or sold and has physical form
Performed by people
A task that needs to be completed
Which of the following would be an example of both a good and a service?
A restaurant meal (food is the good, the waiter’s service is the service)
A bicycle
A hairbrush
A book
Which of the following is an example of a service that is intangible?
A tutoring session
A chair
A box of chocolates
A camera
Which of the following is an example of a service in the healthcare industry?
A prescription
A medical test
A doctor’s visit
A medical textbook
Which of the following is an example of a good that you can consume?
A dentist’s service
A concert
A cup of coffee
A haircut
Which of the following best describes a good?
A product that you can hold and touch
A task performed for someone else
Something that provides entertainment
A work of art displayed in a museum
What does the economic concept of scarcity refer to?
Unlimited resources
Limited resources
Unlimited wants
A surplus of goods
Which of the following is an example of a scarce resource?
Air
Water
Time
Knowledge
Why do people face scarcity in their everyday lives?
Because resources are unlimited
Because resources are limited, but needs and wants are not
Because of the abundance of goods and services
Because people do not work hard enough
What is an example of human capital?
A factory machine
The skills of a worker
A piece of land
A natural resource like wood
When scarcity occurs, what must people do?
Spend more money
Make choices about how to use their limited resources
Increase their production rates
Ignore the limitations
What term describes the cost of the next best alternative when making a choice?
Profit
Scarcity
Opportunity cost
Utility
Which of the following is NOT a factor of production?
Land
Labor
Capital
Money
How do economists deal with scarcity?
By eliminating competition
By studying how to allocate resources efficiently
By increasing the supply of resources
By encouraging people to ignore scarcity
If a country faces scarcity, what does it mean about its resources?
They are more than enough to meet the needs of the population
They are in limited supply
There is no need for competition
There is no need for government regulation
What is the effect of scarcity on prices?
Prices tend to decrease
Prices tend to increase
Prices stay the same
Prices do not change
What is the study of how people make choices in a world with limited resources called?
Philosophy
Economics
Biology
History
Which of the following is an example of a scarce resource?
A pizza shop’s oven
The sun’s rays
Fresh air
A park bench
What does the concept of trade-offs relate to?
Choosing between alternatives due to limited resources
Making decisions without thinking of consequences
Ignoring opportunity costs
Spending money freely
Which of the following is a basic economic question that deals with scarcity?
What should be produced?
How much should be produced?
For whom should goods and services be produced?
All of the above
What does a production possibilities curve (PPC) show?
The potential profit a company can make
The relationship between supply and demand
The trade-offs between different choices given limited resources
The amount of goods a country can consume
When there is a shortage, what is the result?
Prices fall to meet demand
There is not enough of a good or service to meet demand
Scarcity no longer exists
People buy less of the good or service
What does the economic principle of 'utility' refer to?
The total value of all resources
The satisfaction or benefit derived from consuming goods and services
The money spent on goods and services
The market price of goods
If a person chooses to spend money on a new phone instead of saving for a trip, what is the opportunity cost?
The new phone
The trip
The money spent
The decision to buy
Which of the following is an example of a capital resource?
A teacher
A shovel
A piece of farmland
Water
What happens when resources are allocated inefficiently?
Scarcity is eliminated
Resources are wasted
There are no trade-offs
Prices are unaffected
What is inflation?
The increase in the supply of money in an economy
The rise in the general level of prices of goods and services over time
The increase in employment rates
The decrease in the supply of goods and services
Which of the following is a common cause of inflation?
Increased demand for goods and services
A decrease in the money supply
A decrease in demand for goods and services
Lower consumer spending
What happens to the value of money during inflation?
It increases
It stays the same
It decreases
It fluctuates unpredictably
Which of the following is an example of demand-pull inflation?
Prices rise because consumers have more money to spend
Prices rise because the supply of goods decreases
Prices rise because the government reduces the money supply
Prices rise due to higher production costs
Which of the following could be a result of high inflation?
Increased savings
Increased consumer purchasing power
Decreased purchasing power of money
Lower unemployment rates
What is the Consumer Price Index (CPI)?
A measure of the total output of goods and services in an economy
A measure of changes in the prices paid by consumers for goods and services
A tool used to calculate GDP
A list of the most commonly traded goods
What is hyperinflation?
A mild increase in prices
A period of very high and typically accelerating inflation
A decrease in the cost of living
A stable, low rate of inflation
Which of the following could cause cost-push inflation?
Rising wages and production costs
Lower interest rates
An increase in the demand for products
Government tax cuts
What is the main difference between demand-pull inflation and cost-push inflation?
Demand-pull inflation happens when supply decreases, while cost-push inflation happens when demand decreases
Demand-pull inflation happens when demand increases, while cost-push inflation happens when supply decreases
Demand-pull inflation is caused by rising wages, while cost-push inflation is caused by falling wages
Demand-pull inflation only happens in recessions, while cost-push inflation only happens in expansions
How does inflation impact fixed-income earners, such as retirees?
Their purchasing power decreases
Their income increases
Their savings increase
They are unaffected by inflation
What is the relationship between inflation and interest rates?
Higher inflation generally leads to lower interest rates
Lower inflation generally leads to higher interest rates
Higher inflation generally leads to higher interest rates
There is no relationship between inflation and interest rates
Which of the following is NOT an effect of inflation?
Higher costs of living
Decreased value of money
Increased wages for workers automatically
Uncertainty about future prices
What is the role of central banks (like the Federal Reserve) in managing inflation?
They create money without limits
They regulate inflation by adjusting interest rates and money supply
They encourage inflation by raising wages
They prevent inflation by limiting government spending
Which of the following is most likely to occur when inflation is very high (hyperinflation)?
A country's currency becomes more valuable
People lose confidence in the currency and may start using other forms of payment
The cost of living decreases
Interest rates fall
How does inflation affect savings?
It increases the real value of savings
It has no effect on savings
It decreases the real value of savings
It causes savings to increase in value
Which of the following would be a likely consequence of persistent inflation?
Higher wages and higher prices
Lower wages and higher prices
Lower wages and lower prices
Higher wages and lower prices
What happens if inflation is higher than expected?
Lenders benefit, as the value of money repaid is higher
Borrowers benefit, as the value of money repaid is lower
Both borrowers and lenders are equally affected
There is no effect on lenders or borrowers
Which of the following is an effect of moderate inflation on the economy?
It encourages people to spend and invest rather than hoard cash
It makes people reluctant to spend money
It increases the value of money
It leads to a decrease in wages
Which of the following factors is most likely to reduce inflation?
Increased demand for goods and services
Increased production costs
A decrease in the money supply
A government stimulus plan
How can inflation impact global trade?
Inflation can make a country’s exports cheaper to foreign buyers
Inflation can make a country’s exports more expensive, reducing demand
Inflation has no impact on global trade
Inflation encourages countries to stop trading
What is international trade?
Trading goods and services within a country
The exchange of goods and services between countries
Buying and selling stocks in other countries
The trade of natural resources within a region
What is the main benefit of international trade?
Countries can avoid paying taxes
Countries can specialize in producing goods they are best at
Countries can limit the goods they produce
Countries can avoid importing products
Which of the following is an example of an export?
Buying a car from another country
Selling a phone to another country
Receiving a shipment of coffee beans from another country
Trading currency between countries
What is the term for the difference between a country’s exports and imports?
Balance of trade
Gross Domestic Product (GDP)
Currency exchange rate
Global surplus
If a country imports more than it exports, it has a:
Trade surplus
Trade deficit
Balanced trade
Strong economy
What does a country need to have in order to trade internationally?
A stable currency and a government tax policy
Natural resources only
A large population
International agreements and transportation networks
Why do countries trade with each other?
To get access to goods and services they cannot produce efficiently themselves
To create large government agencies
To control the global supply of natural resources
To avoid technological advancements
Which of the following is an example of a trade barrier?
Free trade agreement
High tariffs on imported goods
Lower taxes on imports
A lower supply of products
What is a tariff?
A tax on exported goods
A tax on imported goods
A government subsidy for exporters
A government regulation on exports
What is the purpose of a quota in international trade?
To limit the amount of goods that can be exported
To increase competition between countries
To limit the amount of a product that can be imported into a country
To promote free trade between countries
What is the World Trade Organization (WTO)?
A group of countries that set tariffs
A global organization that regulates and promotes international trade
A financial institution for trading currency
A company that helps countries trade with one another
What is a free trade agreement?
A contract that imposes high tariffs between countries
An agreement between countries to reduce barriers to trade
A restriction on exporting goods
A law that requires countries to trade equally
Which of the following is an example of an item that is often exported from a country rich in natural resources?
Computers
Clothing
Oil
Smartphones
Which of these terms refers to the value of one country’s currency in relation to another country’s currency?
Exchange rate
GDP per capita
Economic balance
Market index
Why might a country devalue its currency in international trade?
To make its goods and services cheaper for other countries to buy
To increase the value of its currency
To raise interest rates for borrowing
To increase government revenue from taxes
What does it mean for a country to specialize in a product?
The country produces and exports only one type of product
The country imports the products it specializes in
The country produces a wide variety of goods to trade with other countries
The country does not participate in international trade
Which of the following is an effect of globalization on international trade?
It leads to higher tariffs
It allows for more goods to be produced locally
It increases the interconnection of economies around the world
It prevents countries from trading with one another
Which of the following would likely be the effect of a trade deficit?
A country is spending more money on imports than it earns from exports
A country’s currency will become stronger
A country’s exports are greater than its imports
The government will increase the number of tariffs
Which of the following is a potential disadvantage of free trade?
Increased government control over trade
More competition for domestic businesses
Less access to foreign goods
Higher tariffs on imports
Which of the following is an example of a product that might be imported by a country that doesn’t produce it domestically?
Cotton in a country with lots of cotton farms
Computers in a country with a large tech industry
Tropical fruit in a country with a cold climate
Manufactured goods in a country with high industrial production
What is the difference between a good and a service?
Goods are always more expensive
Goods are physical items; services are actions
Services are bought in stores
Services are only for businesses
Which of the following is an example of an economic resource?
Movie ticket
Natural gas
Candy
TV commercial
What does "supply and demand" help determine?
Product colors
Advertising budgets
Market prices
Company names
Which of these is a function of prices in markets?
Hiding the value
Confusing buyers
Signaling value to buyers and sellers
Preventing competition
What is one role of business in society?
Providing jobs and goods
Teaching in schools
Collecting taxes
Creating laws
Which is a type of business activity?
Watching a movie
Manufacturing products
Playing a sport
Reading a book
What is a business model?
A famous spokesperson
A plan for making and delivering value
A type of factory machine
A government tax rule
What is one way government affects business?
Hosting movie nights
Organizing sports leagues
Setting regulations and collecting taxes
Planting flowers
What is a tax?
A business investment
A government fee collected from income or sales
A business discount
A loan from a bank
What does productivity measure?
How many hours a worker rests
The number of breaks taken
The amount of output per worker
The size of a company
How can specialization improve productivity?
By creating less work
By reducing product variety
By focusing workers on specific tasks
By increasing costs
Which is a feature of a market economy?
Government ownership of all businesses
Decisions based on tradition
Private business ownership
Central planning
How does entrepreneurship impact an economy?
By increasing government power
By removing competition
By creating new jobs and innovation
By raising taxes
What is one factor that affects business profit?
The color of uniforms
Production costs
Number of friends
Employee birthdays
What is competition in economics?
A school contest
A form of business risk
Rivalry between businesses to attract customers
A team-building activity
In which type of economy does the government own property and control resources?
Command
Traditional
Free Market
Stock Market
Which type of economy occurs in developing countries and often relies on the barter system?
Command
Free Market
Traditional
Sub-Market
As the supply of something decreases what will happen to the value?
Stay the Same
Increase
Decrease
No one knows
Which country is not an example of a command economy?
U.S.
Iran
North Korea
Cuba
Which economy allows supply and demand to set pricing?
Traditional
Command
Free Market
Liberal
Which country is not an example of a free market enconomy?
U.S.
United Kingdom
Australia
Iran
Which motivates businesses and individuals in a free market economy?
Gold
Profit
Debt
Laws
Which is not a characteristic of a free market economy?
Private Property
Limited Government
Barter System
Competition
Which country with a free market economy has the most government oversight?
U.S.
U.K.
Canada
Australia
What does not having enough of a resource to meet consumer demand create?
Back-Orders
Scarcity
Panic
Shortages
What is the study of how people make decisions when presented with limited resources?
Physics
Logic
Economics
Decision Science
Who owns property in a command economy?
Citizens
Government
Nobody
Rich People
What type of countries typically have a traditional economy?
Wealthy
Large
Developing
Tropical
Why does OPEC limit the amount of oil they produce?
To protect the environment
To make sure they don't run out
So they don't get too tired
To keep prices high
During the summer months why do gas prices tend to go up?
Heat makes cars burn more fuel
People tend to travel more
The days are longer
Students get summer jobs
When demand decreases what happens to prices?
They increase
They decrease
They stay the same
Nothing, they are unrelated
When a hurricane or tropical storm limits the supply of oil coming through the Gulf of Mexico what happens to gas prices?
They increase
They decrease
People stop buying gas
Nothing
What does OPEC stand for?
Oil Producing Economic Countries
Organization of Petroleum Exporting Countries
Other People Eating Candy
Organization of People Exporting Cans of Oil
