Shaver Economics Quiz

Which of the following would BEST describe a small business that makes cookies?

• Government

• Producer

• Consumer

• Tariff

Which of the following BEST describes the term entrepreneur?

• A person who works for a large business in a customer service roll like a cashier.

• A person who collects the taxes for government tariffs on imported goods.

• A person who is appointed to a government position like the Secretary of Education.

• A person who starts a project, usually a business, and takes on risk to do so.

The country of Kerplak has a textile (cloth) industry that makes up a large part of its economy. The workers in this industry receive higher wages than those in the countries around Kerplak. Because of this, the nearby country of Alprek can produce cloth for less money and sell it at a lower price. They are starting to export cloth to Kerplak and their cloth is being sold at a lower price than the cloth made in Kerplak. Kerplak's business owners are complaining to the government that they can't compete with the lower cost cloth and will need to go out of business. Kerplak and Alprek are major trading partners in many goods, so the government doesn't want to stop trading with them all together. Which of the following is the government of Kerplak MOST LIKELY to use to help the situation?

• An embargo

• An import

• A tariff

• A quota

A country has started a genocide against a minority ethnic group in their country and several countries in the world decide they want to punish them for this economically. They place an embargo on trade with this country. Which of the following terms BEST describes this?

• Sanction

• Tariff

• Capital

• Subsidy

Which two of the following could be used by a government to make the prices of imported goods the same as the prices of domestically produced goods?

• Tariff

• Embargo

• Quota

• Subsidy

Kuwait just built a new pipeline from their major oil field and a port for oil tankers to load up the oil from the pipeline. Which of these terms describes this?

• Human Capital

• Infrastructure

• Entrepreneur

• Taxes

What is the user of a good or service called?

• Producer

• Consumer

• Entrepreneur

• Bureaucrat

Right now you are increasing your education level. What are you investing in?

• Capital Goods

• Infrastructure

• Human Capital

• Government Subsidies

What is the level of wants and needs that are met by a society known as?

• Capital Goods

• Human Capital

• Infrastructure

• Standard of Living

A country invested some taxes into building a new power plant to provide electricity to the local villages. Which of these is the MOST LIKELY result of this project?

• The standard of living will decrease because the government taxed the people.

• The standard of living will increase because homes and businesses in the area will have access to electricity.

• The standard of living will remain the same because most people in the developing world do not use electricity.

• The standard of living will decrease because homes with electricity are less desired than home without it.