WorksheetsUnit 2 Day 2
Total questions: 15
Worksheet time: 8mins
Which of the following is affected by scarcity and personal planning?
Job choices
Weather patterns
Animal migration
Space exploration
Why do people tend to act in their own rational self-interest?
Because resources are unlimited
Because resources are limited
Because everyone has the same needs
Because there are no emergencies
Which of the following is NOT listed as an area affected by scarcity and personal planning?
Financial planning
Saving decisions
Spending habits
Weather forecasting
Why is planning ahead considered important according to the material?
It helps avoid all problems in life
It prepares for unexpected events like illness, job loss, or emergencies
It guarantees financial success
It eliminates the need for saving money
How might scarcity influence a person's financial planning?
It encourages people to ignore their finances
It leads people to plan for how to use limited resources wisely
It makes people spend money without thinking
It has no effect on financial planning
According to economics, what is the term for what you give up when choosing one option over another?
Sunk cost
Opportunity cost
Fixed cost
Marginal cost
Why is nothing truly free in economics?
Because everything has a price tag
Because there are always hidden costs such as time, labor, resources, or environmental impact
Because free items are illegal
Because free items are always low quality
What does inflation cause to happen to money over time?
Money gains value
Money loses value
Money stays the same
Money doubles in value
If the inflation rate is higher than the interest rate you earn on savings, what happens to your purchasing power?
Your purchasing power increases
Your purchasing power stays the same
Your purchasing power decreases
Your purchasing power doubles
Which of the following statements best describes opportunity cost in the context of saving money?
Saving money has no opportunity cost
Saving money always increases purchasing power
Even saving money has opportunity costs
Opportunity cost only applies to spending money
Explain why it is important to consider both inflation and interest rates when deciding how to save money.
Because inflation and interest rates are always equal
Because inflation can reduce the value of savings if it is higher than the interest rate
Because interest rates never change
Because saving money is always risk-free
Which of the following best describes fiscal policy?
How the government collects and spends money
How businesses set prices
How individuals save money
How banks lend money
What is the main characteristic of a neutral fiscal policy stance?
Spending is equal to what is collected
Spending is less than what is collected
Spending is more than what is collected
Spending is unrelated to what is collected
If a government is spending more than it collects, which fiscal policy stance is it following?
Expansionary
Neutral
Contractionary
Restrictive
Explain how government economic policies can influence international trade.
By setting tax rates that affect the cost of imported and exported goods
By changing the color of currency
By increasing the number of holidays
By making all products free
