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Lesson Worksheet: The Fundamental Economic Problem Economics

In this worksheet, we will practice recognizing the reasons pertaining to the existence of the economic problem, the definition of economics, and its main fields.

Q1:

Which of the following correctly describes the relationship between opportunity costs and choices?

  • AOpportunity cost is always positive.
  • BEvery economic choice is accompanied by an opportunity cost.
  • CIf two individuals make the same economic choice, the opportunity cost for the two individuals is the same.
  • DOpportunity cost is always negative.
  • EOpportunity cost refers to the financial implications of making choices.

Q2:

Which of the following are the two root causes of the fundamental economic problem?

  1. Scarcity of resources
  2. Maximizing profit
  3. Social welfare
  4. Unlimited human needs
  • AI and IV
  • BII and IV
  • CI and III
  • DI and II
  • EII and III

Q3:

Which of the following fields of economics primarily studies problems that relate to improving economic and social conditions?

  • AMacroeconomics
  • BMicroeconomics
  • CDevelopment economics
  • DWelfare economics

Q4:

Which of the following is a description of information failure?

  • AThe government releases inaccurate unemployment numbers, causing the stock market to tumble.
  • BReporting of unemployment numbers by the government is delayed, causing uncertainties in the stock market.
  • CAn individual is undecided on which product to use due to too much available information from the internet.
  • DA company produces an oversupply of toys due to data from an inaccurate survey.

Q5:

Which of the following is an inevitable consequence of choices made in economics?

  • AScarcity of resources
  • BOpportunity cost
  • CSatisfaction of human needs
  • DImproved efficiency

Q6:

After careful review, a national government decided to fund the construction of a bridge. Alternatives considered were the construction of a new high school and an increase in the wages of government employees. Which of the following is not an opportunity cost for the national government’s choice to fund the construction of the bridge?

  • AImproved morale among government employees due to the raise in pay
  • BImproved efficiency in traffic due to the new bridge
  • CImprovement in the quality of high school education
  • DDifference in financial cost between the construction of the bridge and the alternatives considered

Q7:

Which of the following best describes what is studied in microeconomics?

  • ABehaviors of consumers and producers
  • BGeneral levels of economic activity
  • CEvaluating the efficiency of economic decisions
  • DImproving economic and social conditions

Q8:

Which of the following is the underlying aim of the national government when making economic decisions?

  • ATo satisfy human needs
  • BTo efficiently allocate the limited resources and maximize benefits
  • CTo achieve economic growth
  • DTo maximize the government’s revenue

Q9:

Fill in the blanks: The of an economic system is determined by the ability to provide sufficient and appropriate when making an economic decision.

  • Astability, resources
  • Befficiency, resources
  • Cstability, information
  • Dprofitability, resources
  • Eefficiency, information

Q10:

Which of the following statements describes the reason that choices are essential in economic activities?

  • AHuman needs far exceed the available resources.
  • BThe diverse human needs are exactly matched with the availability of resources.
  • CThe availability of resources far exceeds the various human needs.

This lesson includes 35 additional questions for subscribers.

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