High School Economics Exam

What is Economics?

• The study of how people manage scarce resources

• The study of trade

• The study of the stock market

Who is the maker of goods?

• Producer

• Consumer

• Supply Chain

Who is the purchaser of goods?

• Consumer

• Producer

• Economist

Which is NOT a factor of production?

• Capital

• Labor

• Economic benefit

What is a simple definition of the unemployment rate?

• Rate of people not working and do not care to work.

• Rate of people who are working.

• Percentage of the labor force who are out of work, but are looking for a job.

As prices increase demand...

• decreases

• escalates

• increases

The United States can produce t-shirts more efficiently than any other country? Indonesia can produce t-shirts at a lower opportunity cost. The U.S. has many other industries that export goods at a higher value, but Indonesia best exports are textiles. Based on this, which of the following statements best explains what the U.S. should do with regard to tshirt production?

• The U.S. should stop producing t-shirts because Indonesia has a lower opportunity cost, and therefore a comparative advantage over the U.S. in t-shirt production.

• The U.S. has no advantage over Indonesia in tshirt production and should stop production.

• The U.S. has an absolute advantage in t-shirt production, so it should continue to produce.

The most highly valued opportunity or alternative is forfeited when a choice is made. This is called -

• Trade

• Specialization

• Opportunity Cost

Not being able to have all of the goods and/or services that you want because people have endless wants, but goods and services aren't endless. So people are forced to make choices.

• Scarcity

• Trade

• Human Resources

When a shortage exists in a market, price is __________ equilibrium.

• Below

• Above

• At