WorksheetsEcon Section I
Total questions: 30
Worksheet time: 15mins
Which statement best defines economics in this lesson?
Study of money and banking only
Study of choices under scarcity
Study of politics and governance
Study of moral values and ethics
What does scarcity mean for individuals and societies?
Resources exceed wants everywhere
Wants are limited by law
Unlimited desires meet limited resources
Time and money are always sufficient
Which example illustrates a trade-off?
Buying a lottery ticket for fun
Sleeping more and studying less
Finding a free seat on the bus
Receiving a scholarship unexpectedly
Opportunity cost is best described as
Value of the next best alternative
Sum of all future benefits
Total money spent on a choice
Difference between revenue and cost
If you attend a free baseball game instead of mowing lawns for pay, the opportunity cost is
Income foregone from mowing
Cost of transportation
Enjoyment from the game
Price of the ticket
Rational decision-making in economics assumes people
Compare benefits and opportunity costs
Maximize others’ welfare only
Follow traditions exclusively
Choose randomly without reflection
Which statement about gains from trade is accurate?
People trade only when costs exceed benefits
Specialization reduces overall productivity
Voluntary exchange can make both better off
Trade helps only one party involved
Economic models are primarily used to
Replace observation entirely
Include every real-world detail
Capture essential features by simplifying reality
Provide exact predictions always
Which is an implicit cost in attending college, highlighted in the material?
Books and housing expenses
Student fees for campus services
Tuition payments each semester
Value of time that could earn wages
Why are supermarket shelves full viewed through economics?
Government orders all goods supplied
Coordinated self-interest across many actors
Random luck of production outcomes
Charity drives fill most inventory
When evaluating trade-offs, economic thinking focuses on
Minimizing emotions in choices
Selecting the option with highest price
Best choice for self-interest using costs and benefits
Avoiding any opportunity cost
A rational concern for social issues like reducing pollution is
Only relevant to governments
Always ignored in economic models
Consistent with broader benefits
Inconsistent with cost-benefit thinking
Which statement about time as a scarce resource is most accurate?
Time limits force choices among activities
Leisure time is non-scarce by definition
There are more than thirty hours daily
Time scarcity affects only workers
Why might the monetary cost of attending college overstate true expense?
Books have no real price
Room and board are unrelated to attendance
Tuition does not vary by major
Scholarships are always available
What test determines usefulness of an economic model?
Complex mathematics included
Length of the diagram used
Accuracy in capturing the specific reality
Popularity among economists
In voluntary trade between people with different abilities, gains arise because
Only one party bears all opportunity costs
Costs are ignored when trading
Each specializes and exchanges to increase total benefits
Parties avoid specialization completely
Which statement best defines positive economics?
It determines fair income distribution across citizens
It prescribes actions to maximize social welfare
It describes and predicts economic phenomena objectively
It evaluates policies using value judgments
Which statement best defines normative economics?
It recommends choices based on value criteria
It quantifies efficiency using Pareto criteria
It measures causal relationships without opinions
It forecasts market prices using models
What does Pareto efficiency require in an outcome?
Redistribute income until marginal utilities equalize
No one can be made better off without making someone worse off
Maximizing total production of goods
Equal benefits for all individuals
In the minimum-wage debate, which task belongs to positive economics?
Choosing the best redistribution scheme
Deciding which group deserves protection
Estimating how employment changes among covered workers
Judging whether higher wages are fair
Which scenario is Pareto efficient?
Government sets prices to balance markets
Redistribution increases at least one person’s welfare
Any change makes at least one person worse off
Every citizen receives equal income shares
Which branch studies individual behavior and specific markets?
Institutional economics
Macroeconomics
Microeconomics
Development economics
Which branch focuses on overall performance of the national economy?
Macroeconomics
Public choice
Behavioral economics
Microeconomics
Which is a key insight of positive economics in policy debates?
It ensures all citizens benefit equally
It replaces cost–benefit analysis with opinion
It identifies cause-and-effect and estimates magnitudes
It provides a basis for choosing between alternatives
Why can’t Pareto efficiency choose between distributions that are all efficient?
It assumes perfectly competitive markets always exist
It requires interpersonal utility comparisons
It lacks value criteria to rank efficient outcomes
It ignores production possibilities frontier
Which statement reflects a normative claim about a minimum-wage increase?
The policy raises costs for some consumers
Employers may hire fewer covered workers
Higher wages should be adopted to improve living standards
Unemployment among job seekers may rise
Which assumption links microeconomics and macroeconomics?
Perfect information in financial markets
Government balanced budgets every year
Common assumptions about human behavior
Identical preferences across all households
Which outcome is NOT Pareto efficient?
Ten citizens receive 9eachand 10 of production is wasted
Each citizen receives $10 and none can improve without harm
All citizens receive identical benefits and any change harms someone
One citizen receives 91andninereceive 1 each, no improvements possible
Which task fits DoK Level 2 application in this topic?
Memorizing the name Vilfredo Pareto
Listing the two branches of economics
Applying Pareto efficiency to a described scenario
Recalling the definition of scarcity
Which example illustrates microeconomic analysis?
Studying household choices in a local housing market
Forecasting the inflation rate for next year
Evaluating fiscal deficits across regions
Explaining national unemployment trends over a decade
