Unit 1 Introduction to Economics Test

1.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

_______________ IS KNOWN AS THE NATURAL RESOURCES USED TO PRODUCE GOODS AND SERVICES

Entrepreneurs

Capital

Labor

Land

12.

Multiple Choice

2 mins

1 pt

_______________ IS KNOWN AS THE MANMADE RESOURCES USED TO PRODUCE GOODS AND SERVICES.

Entrepreneurs

Capital

Labor

Land

13.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

Which of the factors of production is this?

capital

entrepreneur

land

labor

15.

Multiple Choice

2 mins

1 pt

Which one of the factors of production is this?

capital

entrepreneur

land

labor

16.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

Which factor of production is this?

capital

entrepreneur

land

labor

18.

Multiple Choice

2 mins

1 pt

Any technology/machinery involved in the production process:

Human Capital

Physical Capital

Investment Capital

Enterprise Capital

19.

Multiple Choice

2 mins

1 pt

An individual's knowledge or skills that make production of a good/service more efficient

Human Capital

Physical Capital

Investment Capital

Enterprise Capital

20.

Multiple Choice

2 mins

1 pt

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 Choice

2 mins

1 pt

Economic system where government controls everything.

Market

Command

Mixed

Free Enterprise

22.

Multiple Choice

2 mins

1 pt

Type of Economy that is half command and half market

Traditional

Command

Market

Mixed

23.

Multiple Choice

2 mins

1 pt

Type of economic system where there is no government control.

Mixed

Market

Free Enterprise

Command

24.

Multiple Choice

2 mins

1 pt

Each type of economies answers the three basic questions of economics __________.

the same

differently

25.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

Which type of economic system bases its decisions on custom, habits and rituals?

Market Economy

Mixed Economy

Command Economy

Traditional Economy

27.

Multiple Choice

2 mins

1 pt

Who benefits from market transactions?

Buyers only

Sellers only

Both Buyers & Sellers

Only the government

28.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

Another name for Buyer & Seller is?

Taker and Giver

Finder and Keeper

Student and Teacher

Consumer and Producer

30.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

_____________ establishes the monetary value of products in our economy

The price system

specialization

voluntary exchange

private property

33.

Multiple Choice

2 mins

1 pt

When businesses compete for consumers and resources. This is known as __________.

specialization

market competition

private property

the price system

34.

Multiple Choice

2 mins

1 pt

The right for individuals to own and control resources and products

specialization

private properly

market competition

entrepreneurship

35.

Multiple Choice

2 mins

1 pt

When individuals or businesses focus on doing one thing

specialization

the price system

entrepreneurship

market competition

36.

Multiple Choice

2 mins

1 pt

What other things drive economic behavior?

needs and wants

health issues

loyalty

all of the above

37.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

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

2 mins

1 pt

Which point represents an underutilization/inefficiency of a country's resources?

B

C

A, B, D & F

E

41.

Multiple Choice

2 mins

1 pt

Which point (s) represents efficient usage of a country's resources?

A, B, D, & F

C

E

None of the above

42.

Multiple Choice

2 mins

1 pt

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 Choice

2 mins

1 pt

What 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 choose

Opportunity cost refers to the negative aspects a decision could have whereas cost only refers to the alternative you didn't choose

They 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 Choice

2 mins

1 pt

All of the following are trade-offs except

A teenager decided to choose the smarties over the stickers, pencils, and tissues

A teenager decides to study instead of sleeping or being on her phone

Ford decides to make hybrids rather than SUVs

McDonald's needs to decide how many hamburgers to buy

45.

Multiple Choice

2 mins

1 pt

The Gross Domestic Product measures the value of economic activity within a country.

True

False

46.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

Point B represents (hint this is the opposite of our chart)

Product Market

Factor Market

Households

Businesses

48.

Multiple Choice

2 mins

1 pt

What does point A represent on the Circular flow diagram?

Households

Businesses

Factor Market

Product Market

49.

Multiple Choice

2 mins

1 pt

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

2 mins

1 pt

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 Choice

2 mins

1 pt

What is being represented by the "red flow line"

The flow of money

The flow of goods and services

Taxes

Productive resources

52.

Multiple Choice

2 mins

1 pt

What is being represented by the "green flow lines"

Flow of Money

Flow of Goods and Services

Taxes

law

53.

Multiple Choice

2 mins

1 pt

In the circular flow model, the product market describes _____.

stores that sell goods and services to households

the government paying for public goods

households selling their labor to businesses

households receive income from businesses

54.

Multiple Choice

2 mins

1 pt

Which term belongs in the blank rectangle in the center of the diagram?

Government

Resource market

taxes

goods and services

55.

Multiple Choice

2 mins

1 pt

Choices often have to be made because productive resources are limited while wants and needs are limited. This situation is known as

scarcity

surplus

budgeting

borrowing

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