Economic Pre-Test

· For most people, the largest portion of their personal income comes from:

• Rent paid to them on their property

• Interest on stocks and bonds

• Wages and salaries from their jobs

• The federal and state governments.

When a person rents an apartment, who benefits from the transaction?

• Only the person renting the apartment

• Only the landlord

• Both the renter and the landlord

• Mortgage companies

When deciding which of two items to purchase, you should always:

• Choose after comparing costs and benefits of both items

• Choose the item that costs less

• Choose the item with the greatest benefits

• Choose the item that you want

· If the price of beef doubled and the price of poultry stayed the same, people would most likely buy:

• Less poultry and more beef

• More poultry and less beef

• The same amount of poultry and beef

• Less poultry and beef

· In the United States, who determines what goods and services will be produced?

• Producers and the government

• Government

• Consumers

• Producers, consumers, and government

· Since the resources used in the production of goods and services are limited, society must:

• Reduce the use of those resources

• Try to get more resources

• Focus on their most abundant resource

• Make choices about how to use resources

A large increase in the cost of producing jeans is most likely to result in:

• Lower jean prices and more jeans bought

• Higher jean prices and fewer jeans bought

• No change

• Lower jean prices and fewer jeans bought

A person who starts a business to produce a new product is known in the marketplace as:

• A bureaucrat

• A manager

• An entrepreneur

• A Chief Executive Officer (CEO)

Which of the following would most likely accelerate innovation in the computer industry?

• Taxing all new inventions in the industry

• Investing more into research and development

• Increased government regulation of the industry

• Greater use of PCs by individuals

If interest rates charged by banks decreased, business would be most likely to:

• Increase investment spending

• Decrease the number of employees

• Increase their prices

• See an increase in their stock prices