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Social Studies
11th -
12thgrade
Unit 1 Introduction to Economics Test
55 questions
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- 1. Multiple Choice
A need is ____________.
a physical object
something that is necessary for survival
an item we want
an item we desire but that is not essential for survival
- 2. Multiple Choice
A want is _________________.
a physical object
something that is necessary for survival
an item we want
an item we desire but that is not essential for survival
- 3. Multiple Choice
According to economist a good is
a physical object
an item we need or want
an item we desire but that is not essential for survival
an action or activity that one person performs for another
- 4. Multiple Choice
According to economist service is _______________.
a physical object
something that is necessary for survival
an item we desire but that is not essential for survival
an action or activity that one person performs for someone else
- 5. Multiple Choice
Which of these examples is a service?
Mr. Farr sells guitars.
Mr. Swenson gives art supplies to consumers.
Coach provides lessons for different sports.
Ms. Miller writes books.
- 6. Multiple Choice
Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.
Limited
Unlimited
Natural
Man-made
- 7. Multiple Choice
Scarcity is known as the __________________.
limited amount of resources to meet the unlimited wants
unlimited amount of resources to meet the limited wants
limited amount of resources to meet the limited wants
unlimited amount of resources to meet the unlimited wants
- 8. Multiple Choice
Which of the following statements is true about scarcity?
A. Scarcity is our inability to satisfy all of our wants.
B. Scarcity problem arises because our wants are greater than resources available.
C. The poor and the rich both face scarcity.
D. All of the above.
- 9. Multiple Choice
WHAT ARE THE 4 FACTORS OF PRODUCTION?
Land, Capital, Need & Want
Land, Labor, Capital, Entrepreneurs
Water, Air, Food & Shelter
Land, Capital, Good & Service
- 10. Multiple Choice
WHAT IS LABOR?
work people do for pay to produce good and services
actions people do for other people
any physical object
The money people get for inheritance
- 11. Multiple Choice
_______________ IS KNOWN AS THE NATURAL RESOURCES USED TO PRODUCE GOODS AND SERVICES
Entrepreneurs
Capital
Labor
Land
- 12. Multiple Choice
_______________ IS KNOWN AS THE MANMADE RESOURCES USED TO PRODUCE GOODS AND SERVICES.
Entrepreneurs
Capital
Labor
Land
- 13. Multiple Choice
AN ENTREPRENEUR IS A PERSON WHO _______________.
owns their own business
uses goods and services to produce labor, land, and capital.
uses land, labor, and capital to produce good and services.
loves nature and runs a business
- 14. Multiple Choice
Which of the factors of production is this?
capital
entrepreneur
land
labor
- 15. Multiple Choice
Which one of the factors of production is this?
capital
entrepreneur
land
labor
- 16. Multiple Choice
Steve Jobs the founder of Apple is holding up an I-phone. What is another name for someone who starts a business?
capital
entrepreneur
land
labor
- 17. Multiple Choice
Which factor of production is this?
capital
entrepreneur
land
labor
- 18. Multiple ChoiceAny technology/machinery involved in the production process:Human CapitalPhysical CapitalInvestment CapitalEnterprise Capital
- 19. Multiple ChoiceAn individual's knowledge or skills that make production of a good/service more efficientHuman CapitalPhysical CapitalInvestment CapitalEnterprise Capital
- 20. Multiple Choice
What are the three basic economic questions?
What to produce? How to produce? For whom to produce?
Who to produce? Why you produce? Like to produce?
Why to produce? Tell who to produce? Things to produce?
- 21. Multiple ChoiceEconomic system where government controls everything.MarketCommandMixedFree Enterprise
- 22. Multiple ChoiceType of Economy that is half command and half marketTraditionalCommandMarketMixed
- 23. Multiple ChoiceType of economic system where there is no government control.MixedMarketFree EnterpriseCommand
- 24. Multiple ChoiceEach type of economies answers the three basic questions of economics __________.the samedifferently
- 25. Multiple Choice
Which one of these characteristics of a market economy makes it the best for buyers?
lack of choice
individual choice
competition
central ownership of property
- 26. Multiple Choice
Which type of economic system bases its decisions on custom, habits and rituals?
Market Economy
Mixed Economy
Command Economy
Traditional Economy
- 27. Multiple Choice
Who benefits from market transactions?
Buyers only
Sellers only
Both Buyers & Sellers
Only the government
- 28. Multiple Choice
What is a market? choose the best answer
A place where goods and services are exchanged
a grocery store
a place where wants and needs are given and taken
school
- 29. Multiple Choice
Another name for Buyer & Seller is?
Taker and Giver
Finder and Keeper
Student and Teacher
Consumer and Producer
- 30. Multiple Choice
What is the goal of a buyer?
to buy good and services
to sell goods and services
Fulfill wants and needs
to make a profit
- 31. Multiple Choice
What is the goal of a seller?
to buy goods and services
to sell goods and services
to fulfill wants and needs
to make a profit
- 32. Multiple Choice
_____________ establishes the monetary value of products in our economy
The price system
specialization
voluntary exchange
private property
- 33. Multiple Choice
When businesses compete for consumers and resources. This is known as __________.
specialization
market competition
private property
the price system
- 34. Multiple Choice
The right for individuals to own and control resources and products
specialization
private properly
market competition
entrepreneurship
- 35. Multiple Choice
When individuals or businesses focus on doing one thing
specialization
the price system
entrepreneurship
market competition
- 36. Multiple Choice
What other things drive economic behavior?
needs and wants
health issues
loyalty
all of the above
- 37. Multiple Choice
Opportunity Cost is
The alternatives you didn't choose because we hate them
The second best alternative given up for a decision
The negative aspects of an action
The choice you made first
- 38. Multiple Choice
Trade-offs
Are the same as opportunity costs
Can all be considered opportunity costs; or a sacrifice between two good choices
Is only the next best alternative to the choice you made
Weight the costs and benefits
- 39. Multiple Choice
The Production Possibilities Frontier shows the various combinations of output:
consumers would like to consume
producers would like to produce
an economy can produce
an economy should produce
- 40. Multiple Choice
Which point represents an underutilization/inefficiency of a country's resources?
B
C
A, B, D & F
E
- 41. Multiple Choice
Which point (s) represents efficient usage of a country's resources?
A, B, D, & F
C
E
None of the above
- 42. Multiple Choice
Which point(s) represent none production with the given country's resources? Because it cannot be done.
B
C
A, D, B & F
E
- 43. Multiple ChoiceWhat is the difference between cost and opportunity cost?Cost refers to the negative aspects a decision could have whereas opportunity cost only refers to the alternative you didn't chooseOpportunity cost refers to the negative aspects a decision could have whereas cost only refers to the alternative you didn't chooseThey are interchangeable (they mean the same thing but are different parts of speech)There are multiple opportunity costs to an individuals decision but only one cost
- 44. Multiple ChoiceAll of the following are trade-offs exceptA teenager decided to choose the smarties over the stickers, pencils, and tissuesA teenager decides to study instead of sleeping or being on her phoneFord decides to make hybrids rather than SUVsMcDonald's needs to decide how many hamburgers to buy
- 45. Multiple Choice
The Gross Domestic Product measures the value of economic activity within a country.
True
False
- 46. Multiple Choice
What are the four main parts of the circular flow diagram?
Product Market, Stock Market, Factor Market, Fish Market
Product Market, House Market, Factor Market, Good Market
Factor Market, Product Market, Households, Firms
Factor Market, households, Stock Market, super market
- 47. Multiple Choice
Point B represents (hint this is the opposite of our chart)
Product Market
Factor Market
Households
Businesses
- 48. Multiple Choice
What does point A represent on the Circular flow diagram?
Households
Businesses
Factor Market
Product Market
- 49. Multiple Choice
Arrows 4 and 7 on this circular flow diagram demonstrate (reminder 4 should be on the inside of the flow)
prices
taxes
goods and services flow
money flow
- 50. Multiple Choice
The arrows 1 to 2 in this diagram represent which aspect of the economy?
goods and services flow
money flow
taxes
factors of production
- 51. Multiple ChoiceWhat is being represented by the "red flow line"The flow of moneyThe flow of goods and servicesTaxesProductive resources
- 52. Multiple ChoiceWhat is being represented by the "green flow lines"Flow of MoneyFlow of Goods and ServicesTaxeslaw
- 53. Multiple ChoiceIn the circular flow model, the product market describes _____.stores that sell goods and services to householdsthe government paying for public goodshouseholds selling their labor to businesseshouseholds receive income from businesses
- 54. Multiple ChoiceWhich term belongs in the blank rectangle in the center of the diagram?GovernmentResource markettaxesgoods and services
- 55. Multiple ChoiceChoices often have to be made because productive resources are limited while wants and needs are limited. This situation is known asscarcitysurplusbudgetingborrowing
- Answer choicesTagsAnswer choicesTags