Economics Introduction Unit Quiz

Name: ________________________________ Date: _____________________Hr: _________

Part 1: Matching Vocabulary Write the letter of the vocabulary term before the correct definition in the space provided. A. B. C. D. Benefits Choice Costs Economics E. Incentives F. Opportunity cost G. Resources H. Scarcity

_____ 1. This is the study of people making choices. _____ 2. This is the action taken or decision made. _____ 3. These are the favorable or positive outcomes that are a result of your choice. _____ 4. These are what are lost or sacrificed as result of a choice. _____ 5. This is the reason why you made the decision, the motivators or expected rewards. _____ 6. This is an economic condition in which a resource is limited in amount, people want more of it than is available, and the resource has more than one use. _____ 7. These are needed to produce the goods and services people consume. _____ 8. This is the next best alternative that must be given up as a result of a choice.

Part 2: Fill-in-the-Blank: The Six Principles of Economic Reasoning Write in the missing word or words in the blanks below. 1. 2. 3. 4. People ___________. Peoples choices involve ______________. People respond to __________________________ in predictable ways. People create ___________________ ____________________ (or rules) that influence individual ________________ and _______________________. 5. People gain when they ___________ voluntarily. 6. Peoples choices have __________________________ that lie in the __________________ .

Part 3: Reading Assessment Read the passage by Robert Frank on the back of this answer sheet (Why has the average age at first marriage increased?) and answer the 5 multiple choice questions that follow by writing the letter of

the best answer in the space below:

1. 2. 3. 4. 5. __________ __________ __________ __________ __________

Why has the average age at first marriage increased? ~ excerpt from The Economic Naturalist by Robert H. Frank (2007)

In the United States, the average age at first marriage in 1960 was 22.8 years for men and 20.3 years for women. By 2004 these ages had increased to 27.4 and 25.8 respectively. Similar increases have taken place in other countries. The average age at first marriage in Australia in 2001 was 28.7 for men and 26.9 for women, up from 23.4 for men and 21.1 for women in 1970. Why are people waiting longer to get married?

One reason is that as rising incomes have produced greater access to higher education, the amount of education a person needs to land any given job has increased. For example, whereas a person with a high school diploma might have reasonably expected to get a job as a bank teller a century ago, most banks today fill such positions with college graduates. And as labor markets have become more competitive, grades and other measures of school performance have had an increasing impact on career success.

On both accounts, the opportunity cost of marrying young has been increasing. For instance, early marriage makes it more difficult to pursue a college diploma, especially for parents. And to the extent that people hope to marry someone prosperous, the information required to predict success is not available as soon as it used to be.

Traditionally, one of the perceived benefits of marrying young was to pair up with an attractive partner before all the good ones were claimed. But there may be fewer reasons than in the past to worry about being left behind. With higher incomes, education, and mobility has come access to a steadily growing pool of potential marriage partners. So the opportunity cost of passing on an attractive partner when young is not as high as it once was.

Another perceived benefit of marrying young was to have children while one was still healthy and strong enough to meet the demands of raising them. But this benefit has also diminished with improvements in health and longevity.

In short, the costs of marrying young have been rising, while the benefits have been declining. And that may help explain why the average age at first marriage has been rising.

Introduction to Economics Reading Assessment Questions: Why has the average age at first marriage increased? Please select the best answer to each question and mark your answer on the front of your quiz answer sheet under Part 3:
1. What is the central idea of this passage? a. People are choosing to get married earlier in life for the greater benefits of companionship. b. People are choosing to get an education rather than take on the greater costs of marriage. c. People are choosing to get married several times as they seek the greater benefit of a prosperous spouse. d. People are choosing to get married later in life because costs of marrying young are greater.

2.

Which of the following definitions would best explain what opportunity cost means as used in the passage? a. What a person gains as a result of a choice. b. What a person must give up as a result of a choice. c. What a person must pay when making a choice. d. What a person gives to others when making a choice.

3.

What is a cost for people choosing to marry at a young age? a. Marrying at a young age makes it more difficult to get a higher education. b. Marrying at a young age is more expensive due to inexperience. c. Marrying at a young age has no costs or negative consequences. d. Marrying at a young age may cause diminished health in the long-run.

4.

Higher education has had what influence on the choices people make in relation to the age of first marriages? a. People do not need to pursue a higher education in todays labor ma rket so they marry at a younger age. b. People with high school diplomas can easily find good paying jobs in the labor market so they marry at a younger age. c. People pursue higher education due to increased competition in the labor market so they marry at a later age. d. People pursue higher education in order to meet a more prosperous partner so they marry at a later age.

5.

What has allowed people greater access to a growing pool of potential marriage partners? a. Living longer, mobility and having children. b. Mobility, higher education and higher incomes. c. Education, higher income, and longevity. d. Career success, competitive labor markets and education.