Economics Unit Test Review

What is NOT one of the 3 basic economic questions?

• What good should be produced?

• Who will get the good or service?

• How should the good be produced?

• How much should the good cost?

There is only one gas station on a highway. If two more gas stations open next to the first, what will happen to the price?

• Price will decrease

• Price will increase

• Price will stay the same

If country X has a large land mass, fertile soil and many farms, what should they specialize in?

• Cars

• Computers

• Agricultural goods

• Textiles

Rubber is used to make trees, If a pest kills the rubber trees. What action must the tire producer make in order to deal with the decrease in supply of rubber?

• Decrease the price of tires

• Increase the price of tires

• stop production of tires

• increase production of tires

What is it called when many people buy a certain good or service?

• Supply

• Demand

• Production

• Market Clearing Price

What is the total amount of a product available for purchase called?

• Supply

• Demand

• Production

• Market Clearing Price

What is the main reason that different countries trade with each other?

• Different countries specialize in producing different kinds of goods

• Different counties have different number of people living in them

• Countries share the same banking system

Megan wants to open a new bakery. What would help Megan answer the questions of WHAT to produce?

• A magazine listing the price of bakery ovens

• A survey showing which baked goods are most popular

• An advertisement showing spaces available for rent

Megan wants to open a bakery. What will help her answer the questions of HOW to produce?

• A bake sale that the school is hosting.

• A survey showing which baked goods are most popular.

• An advertisement showing space available to rent.

Which is NOT a factor of production?

• Market

• Labor

• Land

• Entrepreneurship