Economics Assessment
Economics Assessments
1.1.1 Scarcity, Choice, Opportunity Costs, and Comparative Advantage – Using examples, explain how scarcity, choice, opportunity costs affect decisions that households, businesses, and governments make in the market place and explain how comparative advantage creates gains from trade.
1. Willie loves ice cream. He has found a store that sells ice cream cones at a bargain price of $0.50 each. He has just eaten two of these cones but has not decided to buy a third one. Which of the following statements best explains the economic principle at work in Willie’s decision not to buy a third cone?
A. Consumers weigh the additional costs and benefits before choosing to buy more goods. B. Consumers spend freely to increase business activity so that the price of goods will drop. C. Consumers save more by buying larger quantities. D. Consumers buy more at lower prices.
Answer: A
2. Juan, Darrell, and Anita all want to go out with their friends on Saturday night but first they must clean their house. Use the idea of comparative advantage to decide who should do what chore in order to get the household chores done the fastest.
|Chore |Juan |Darrell |Anita |
|Vacuum/Dust |35 minutes |50 minutes |25 minutes |
|Do the laundry |60 minutes |30 minutes |50 minutes |
|Clean the Kitchen/Bath |20 minutes |25 minutes |35 minutes |
A. Darrell should vacuum/dust; Anita should clean the kitchen/bath; Juan should do the laundry. B. Darrell should do the laundry; Anita should clean the kitchen/bath; Juan should vacuum/dust. C. Darrell should
1.1.1 Scarcity, Choice, Opportunity Costs, and Comparative Advantage – Using examples, explain how scarcity, choice, opportunity costs affect decisions that households, businesses, and governments make in the market place and explain how comparative advantage creates gains from trade.
1. Willie loves ice cream. He has found a store that sells ice cream cones at a bargain price of $0.50 each. He has just eaten two of these cones but has not decided to buy a third one. Which of the following statements best explains the economic principle at work in Willie’s decision not to buy a third cone?
A. Consumers weigh the additional costs and benefits before choosing to buy more goods. B. Consumers spend freely to increase business activity so that the price of goods will drop. C. Consumers save more by buying larger quantities. D. Consumers buy more at lower prices.
Answer: A
2. Juan, Darrell, and Anita all want to go out with their friends on Saturday night but first they must clean their house. Use the idea of comparative advantage to decide who should do what chore in order to get the household chores done the fastest.
|Chore |Juan |Darrell |Anita |
|Vacuum/Dust |35 minutes |50 minutes |25 minutes |
|Do the laundry |60 minutes |30 minutes |50 minutes |
|Clean the Kitchen/Bath |20 minutes |25 minutes |35 minutes |
A. Darrell should vacuum/dust; Anita should clean the kitchen/bath; Juan should do the laundry. B. Darrell should do the laundry; Anita should clean the kitchen/bath; Juan should vacuum/dust. C. Darrell should