Certainly! Here’s a unit test based on basic economics concepts. This test includes a variety of question types, including multiple choice, short answer, and true/false questions. It can be used to assess understanding of fundamental economic principles.
Economics Basics Unit Test
Instructions: Answer all questions to the best of your ability. For multiple-choice questions, circle the correct answer. For short answer questions, provide a brief explanation or definition.
Multiple Choice Questions
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What is the basic economic problem that arises because resources are limited? a) Surplus
b) Scarcity
c) Affluence
d) Efficiency -
Which of the following is considered a factor of production? a) Money
b) Raw materials
c) Consumer goods
d) All of the above -
In a market economy, what primarily determines the price of goods? a) Government regulation
b) Supply and demand
c) Consumer preference
d) Production costs -
What term describes the additional benefit received from consuming one more unit of a good or service? a) Marginal cost
b) Total utility
c) Diminishing returns
d) Marginal utility -
Which economic system is characterized by private property and free markets? a) Communism
b) Socialism
c) Capitalism
d) Feudalism
True/False Questions
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T/F: Inflation refers to a general decrease in prices across the economy.
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T/F: A monopoly exists when a single company or entity is the sole provider of a good or service.
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T/F: Opportunity cost is the cost of the next best alternative forgone when a choice is made.
Short Answer Questions
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Define "supply." How does it relate to price?
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Explain the concept of elasticity in economics. What does it indicate about consumer behavior?
Answers
At the end of the test, you can provide the correct answers for grading.
Answer Key:
- b) Scarcity
- b) Raw materials
- b) Supply and demand
- d) Marginal utility
- c) Capitalism
- False
- True
- True
- Supply refers to the quantity of a good or service that producers are willing to sell at various prices. Generally, as the price increases, supply also increases, and vice versa.
- Elasticity measures how responsive the quantity demanded or supplied is to a change in price. A good with high elasticity will see a significant change in quantity demanded/supplied when its price changes, indicating that consumers are sensitive to price changes.
Feel free to modify any questions or adjust the focus areas based on specific topics covered in your economics basics unit!