Basic Economic Concepts (Grades 11-12)
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Basic Economic Concepts
1.
Economics is:
- The study of how businesses make profit
- The study of how we make choices when faced with limited resources
- The study of how we face unlimited resources
- The study of how the same people are late for class every day!
2.
What is scarcity?
- When an unlimited amount of goods and services are available to meet limited wants and needs
- When a limited amount of goods and services are available to meet unlimited wants and needs
- When a limited amount of goods and services are available to meet limited wants and needs
- When an unlimited amount of goods and services are available to meet unlimited wants and needs
3.
What are needs?
- Things that are important for survival
- Something people desire but is not needed to survive
- When people want more of a good that producers are willing to make
- Things that make our life better
4.
Capital is:
- The effort people devote to tasks for which they are paid
- Any human made resource used to produce goods and services
- All natural resources used to make goods and services
- Washington D. C.
5.
Goods are:
- Actions one person does for another
- When limited services are available to meet people’s needs
- The knowledge and skills gained from education and experience
- Physical objects that people buy
6.
What are services?
- Physical objects that people buy.
- Something that is important to survive.
- Action a person does for another for pay.
- Anything people use to make things.
7.
This does not affect wages.
- Experience
- Age
- Education
- Height
8.
A trade-off is:
- The extra cost of adding one unit
- The alternatives we give up when we choose one action over another
- A process in which you compare what you will give up and gain from an action
- The money a person makes
9.
This is the money a business keeps after all costs of production have been paid.
- Profit
- Capital
- Income
- Marginal cost
10.
In this economic system, the government owns all the property and controls all resources.
- Free market economy
- Capitalism
- Communism
- Traditional economy
11.
Cost/benefit analysis is:
- The extra benefit of adding one unit
- When the cost of adding one unit outweighs the benefit of producing it
- A process in which you compare what you will give up and gain from an action
- When a government has to decide between spending money on the military or social programs
12.
What is a market?
- A transfer of goods, services and ideas that someone makes willingly
- When the government makes all the economic decisions
- A place that allows buyers and sellers to exchange things
- A place in Boston where they make chicken and tasty side dishes
13.
What is specialization?
- When individuals and businesses do what they do best
- When individuals and businesses do what they can’t do well
- When individuals and businesses do what they do poorly
- When a person is really, really, really, terrible at what they do
14.
What is not an advantage of specialization?
- Workers can be trained better
- Production increases
- Workers learn their skills better
- Less good are produced quicker
15.
This is when people want a good or service and have the ability to pay for it.
- Law of demand
- Supply
- Demand
- Inflation
16.
Buying a gallon of gas for $1.25 per gallon in 1990 and then paying $4.00 a gallon in 2011 is an example of:
- Inflation
- Medium of exchange
- Deflation
- Unit of account
17.
Taking the bus to work instead of buying a new car is an example of:
- Medium of exchange
- Barter system
- Substitution effect
- Demand
18.
This is information like age, race, gender, income and occupation of a population.
- Demographics
- Complements
- Expectation
- Demand curve
19.
What does not affect demand?
- Price
- Demographics
- Population increase
- Demand schedule
20.
This is when there is more demand than supply or not enough.
- Supply
- Shortage
- Demand
- Surplus
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