Economics Final Study Guide

Which outcome would most likely occur after a significant increase in the minimum wage?

• People would likely make less money

• The elimination of several low-paying jobs because companies can't afford to pay those workers more.

• An increase in unemployment rate

• Higher skilled workers.

Which scenario is an example of a monopoly?

• A local water company is the sole provider of water for a small town.

• A farmer produces green beans for sale at a farmers’ market.

• A small number of cereal companies produce most of the cereal on the market.

• A dry cleaner specializes in environmentally friendly cleaning methods

Which statement completes the diagram?

• Economic decline

• Decreased human capital

• Increased government regulation

• Economic Growth

Competition among businesses helps an economy by causing businesses to

• store goods for later sale

• set high prices for goods.

• produce goods efficiently.

• share costs with each other.

How have international trade agreements affected societies?

• Societies do not communicate much anymore.

• Societies rely more on imported goods traded into their country.

• Societies are more independent & do not rely on other countries

• Societies have reduced their long-distance transportation

Use the list below to answer the question.

1. Treating a friend to lunch

2. Buying her grandmother a present

3. Seeing a movie

4. Buying a new sweatshirt

Maria has enough money to do only one thing on her list. After careful consideration she has ranked her choices as indicated above and decides to treat a friend to lunch. What is the opportunity cost of Maria’s decision?

• Treating a friend to lunch

• Buying her grandmother a present

• Seeing a movie

• Buying a new sweatshirt

Which action will MOST LIKELY lead a person to increase personal wealth?

• earning a higher income

• spending more on expenses

• traveling around the world

• taking out high-interest loans

Which of the following is NOT a resource?

• water

• food

• land

• jewelry

A local seafood supplier has changed the price of crawfish from $3 to $5 per pound. Which of the following scenarios would best account for the supplier's decision?

• A popular grocery store is having a sale on oysters.

• A crawfish festival has increased demand.

• A study has come out on the health benefits of shrimp.

• An oversupply of crawfish has lowered demand.

Which measurement BEST indicates the economic growth of a country?

• average hourly earnings

• the Consumer Price Index

• the rate of new employment

• per capita Real Gross Domestic Product