WorksheetsThe Nature and Importance of Economics
Total questions: 20
Worksheet time: 10mins
Which best defines Economics according to Walstad and Bingham (1993)?
The study of politics and society
The study of how scarce resources are used to obtain maximum satisfaction
The study of business management
The study of human psychology
What is the common ground of all definitions of Economics?
Wealth is unlimited
Resources are scarce and wants are unlimited
Goods are always available
Technology solves all problems
The imbalance between human desires and the means of satisfying them is called:
Utility
Wants
Scarcity
Consumption
Opportunity cost refers to:
The money spent on goods
The next best alternative that is sacrificed
The profit gained from production
The total cost of resources
What is the fundamental economic problem?
Inflation
Scarcity
Unemployment
Poverty
Which of the following is NOT part of the basic decision questions of economics?
What goods and services to produce
How goods and services are produced
For whom goods and services are produced
How much money people should save
The main concerns of Economics are:
Politics, culture, and religion
Production, distribution, and consumption
History, geography, and sociology
Law, ethics, and philosophy
Utility in Economics refers to:
Beauty of goods
Monetary value
Usefulness or ability to satisfy a want
Cost of production
Which of the following is NOT a form of utility?
Form utility
Place utility
Time utility
Moral utility
Which factor of production refers to natural resources?
Labor
Capital
Land
Entrepreneurship
Income received by labor is called:
Rent
Wages
Interest
Profit
Profit is the income of which factor of production?
Labor
Land
Capital
Entrepreneurship
Consumption is best described as:
Creating goods
Allocating resources
Using goods and services
Selling products
Which is a characteristic of economic goods?
Unlimited
Scarce
Free
Invisible
Economics is related to Sociology because:
Government controls the economy
Low standard of living leads to social problems
History records economic events
Morality guides human actions
Microeconomics studies:
The economy as a whole
Individual economic units and markets
International trade only
Government spending
Macroeconomics deals with:
Household decisions
Firm behavior
Aggregate economic variables like output and unemployment
Personal income
Which economic goal focuses on having jobs for those willing and able to work?
Economic growth
Full employment
Economic freedom
Price stability
The goal that prevents “the rich getting richer and the poor getting poorer” is:
Economic efficiency
Economic security
Equitable distribution of income
Balance of trade
Balance of trade refers to:
Equal number of workers and jobs
Balance between imports and exports
Stability of prices
Equality of income
