Economics Full Length Practice Test

Which of the following is NOT one of the 3 Economic questions?

• What to produce

• Whom to produce for

• How to produce

• When to produce

Ben's marginal benefit of practicing his golf swing for an extra hour is...

• the lost time he could have spent hanging out with his friends.

• the extra energy he spent by practicing.

• the additional wear and tear he put onto his golf clubs.

• the additional muscle memory he obtains.

In a ______________ economy the "3 economic questions" are answered by a central controller.

• Market

• Traditional

• Command

• Mixed

What is the "land" resource when making a pizza?

• The Delivery Boy

• The Oven

• The Pizza Shop Owner

• The Dough/ Cheese/ Sauce

Blockbuster Video (a DVD rental store) went bankrupt after the rise of Netflix and online streaming. Netflix was responding to ____________________.

• Consumer Sovereignty

• Competition

• Economic Efficiency

• Voluntary Exchange

Which of the following is NOT an example of economic freedom?

• IHOP decides to stop selling pancakes and start selling hamburgers

• NIKE decides to outsource its shoe production to China

• Delta begins using a new jet fuel to comply with the EPA

• Consumers choosing not to buy a new iPhone b/c the price is too high

Investment in ___________________ leads to long term growth.

• Consumer Goods

• Human Capital

• Capital Goods

• Human Capital and Capital Goods

In which of the following economies is there the most consumer sovereignty?

• Traditional

• Command

• Market

• Mixed

Which of the following likely has the MOST human capital?

• Teachers

• Surgeons

• Professional football players

• Astronauts

Canada has a universal healthcare system, providing government-funded medical services to all citizens. However, the vibrant private sector helps to push an economy that is one of the world's most successful. Intense and frequent trade with the United States provides the country with great wealth.

These facts provide evidence that Canada has a

• mixed economy

• market economy

• traditional economy

• command economy