Name bate _ Cs Q@xa7 1s economics? score ‘Matching: Match each item in Column A with the items in Column B. Write the correct letters in the blanks. A B — 1. economics the amount of output that esis fom a guen evel of inputs Ba stuation in which people donot have enough resources to satsfy every deste — 3. goods and, labor, and capital the study of how invidual, fame, businesses, and societies use ited resources to fll the unlimited wants activites done fora fee a smpified representation ofthe real wor 9. manufactured goods used to make other goods and services h. the work people do —— Biabor — 4. capital 5. factors of production — 6. productivity 7. entrepreneurship 8. scarcity J, the abit of individuals to start new businesses, introduce ‘new products and processes, and improve management 9. services techniques tangible items that people buy — 10. economic model RECALLING FACTS AND IDEAS ‘Multiple Choice: inthe blank at the left, write the letter ofthe choice that best completes the statement or answers the question. —— 11. Factor of production include which ofthe following? 2. land, labor, and capital b, technology products and entrepreneurship © goods and services dd. al ofthe products produced in an economy 12. The valve of the next best alternative that has to be given up forthe action thats chosen the 2, factor of production b. trade-ft opportunity cost 4. producti 13, A company’ office buildings are an example of a. capital b. labor. «. land entrepreneurship. _— 14, Economists build economic mode's a. to describe how a business should combine the factors of production to produce goods by to elpanajze the way the word wor. «. tofind out how high teenage unemployment is dd. tobe abl o use graphs to show how the economy works ‘Chapter and Unit TestsDate (FS Tes __ 15. Which ofthe folowing doesnot describe what economists do? be use factors of production to produce goods te theories about how the economy {create economic models study the economy GRITICAL THINKING QUESTIONS Directions: Answer each of the following sets of questions on a separate sheet of paper. 16. Understanding Cause and Effect Explain why productivity rises when capital Is increases 17, Making Comparisons Explain the difference between the concepts of scarcity and shortage saan Using Charts and Tables: Study the chart and answer the questions below. di. formulate works Production Possibilities for the High-Fidelity Equipment Company ‘Number of umber of Digital Televisions | Stereo Systems 2,000 10,000 2,100 9500 2,200 9,000 2,300 8,500 18. How many digital television sets does High-Fidelty have to trade-off if it wants to produce another 500 stereo systems? 19. Could High-Fidelty produce 2,000 digital televisions and 9,500 stereo systems? 20. why isit impossible for High-Fidelty to produce 2,300 digital television sets and 10,000 stereo systems?Name Date Ch eo T E s T (continued) Directions: in the blank to the left, write the letter of the choice that best completes the statement or answers the question, Production Possibilities—Military Goods Versus C = 4j Chapter |, Test Form ilian Goods 12 3 4 5 6 7 8 8 10 Civilian Goods (in $ billions) 21. Study the graph. Suppose ths navon starts wth producing all military goods, represented by point A. it then deodes to produce a mix of civilian and miltary goods, represented by point B. What represents the cost in miltary goods given up? ‘a. the vertcal dstance between point xa point y point 2 the horizontal distance between point zand the verti point E bb the horizontal dstance between point y and distance from point A to point x “The study of economic theory is not defensible on aesthetic grounds—it hardly rivals in elegance the mathematics or physics our sophomores earn. The theory is studied only as an aid in sowing real problems, and itis good only in the measure that it performs this function. Source: George J. Sigler “Monapensie Compatin n Ravospect” in Five Lectures on Economic Problems, London: Longmans, Green and Co, 199, p22 | 3d economic theory i one that ematics orb, helps sohe re 22, recording to ths author. a o a. isas elegant as a theory in physics. includes mathematics. d,s aesthetcally sound problems, Qo om tome (Chapter and Unit TestsName Dat “ Chapter |, Test Form 4 Directions: Answer each of the following questions on a separate sheet of paper 7 oa her ror thes ‘Tho Ferrets professional baseball team has only enough money to sign either one suPersia young players. The superstar could help the team win the championship this year but would not be with the team long, The young players are talented but not yet ready for the major leagues. 23, If the Ferets decide to sign the young players, what trade-off would they be making? Twinkies were invented in 1930 by James Dewar, a bakery plant manager. It didnt make sense to Dewa that the bakery had lots of expensive pans dedicated to a product called Little Short Gake Fingers that was baked only six weeks a year, during strawberry season. To sell the cakes year-round, he mixed up a banana-flavored cream to replace the strawberry cream tiling and figured out how to inject i into the shortcake using three syringe-like injection tubes. Adapted from Jack Mingo's How the Cadkitac Got its Fins, HarperColtins, © 1994. 24. Describe the role of entrepreneurship in this passage, 77 Resse YOURE ALL TEREAE ne pREoT Cr MTOM. CerENCE Succes LETS ACE 1 MUST GONFISCATE IQUE CROPS... ‘i ons What trade-off isthe king making in this cartoon?