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WorksheetsOBarclay 3rd 9 wks ex study gd Econ quiz
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
The purpose of government in a command economy is to
a)
ensure the availability of consumer products
b)
make major economic decisions
c)
encourage entrepreneurs
d)
promote economic freedom
2.
Actions in one part of the country or world that have an economic impact on what happens eslewhere are examples of
a)
opportunity costs
b)
economic interdependence
c)
trade-offs
d)
specialization
3.
The money used to buy the tools and equipment needed for production is known as
a)
financial capital
b)
wealth
c)
capital goods
d)
the factors of production
4.
An economy at its production possibilities frontier is operating
a)
with slow economic growth
b)
at full potential
c)
without division of labor
d)
as a free enterprise economy
5.
A popular model used to illustrate the concept of opportunity cost is
a)
the production possibilities fronier
b)
entrepreneurship
c)
the paradox of value
d)
the factors of production
6.
The dollar value of all final goods and servces and the most compehensive measure of a country's total production output is
a)
Gross Domestic Product (GDP)
b)
a cost-benefit analysis
c)
financial capital
d)
its standard of living
7.
The study of economics is important because it enables us to
a)
describe our standard of living
b)
increase our consumption of consumer goods
c)
become better decision makers
d)
determine what goods ought to be produced
8.
Division of labor is a characteristic of
a)
home craft businesses
b)
assembly line production
c)
classroom education
d)
entrepreneurship
9.
To arrive at an economic decision, a decision-making grid may be used to evaluate
a)
productivity
b)
only durable goods
c)
alternative choices of action
d)
only capital goods decisions
10.
Manufactured goods needed to produce other goods and services are called
a)
consumer goods
b)
Gross Domestic Product (GDP)
c)
capital goods
d)
nondurable goods
11.
The situation in which some necessities have little value while some non-necessities have a much higher value is known as
a)
economic interdependence
b)
trade-offs
c)
opportunity cost
d)
paradox of value
12.
A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred?
a)
A dramatic decline in revenues demonstrated the inelasticity of the product.
b)
A dramatic decline in revenues demonstrated the elasticity of the product.
c)
A small increase in revenues demonstrated the unit elasticity of the product.
d)
A sharp increase in revenues demonstrated the elasticity of the product.
13.
Because a modest price increase has little or no effect, the demand for the product is
a)
unit elastic
b)
elastic
c)
inelastic
d)
complementary
14.
Advertising, fashion trends, and new product introductions serve to
a)
create consumer needs
b)
increase income effectiveness
c)
create consumer demand
d)
minimize the income effect
15.
An increase in the price of milk causes a decrease in the demand for cereal. The two products are
a)
substitutes
b)
compliments
c)
unrelated
d)
demand elastic
16.
For most products and services, increased price results in
a)
demand for fewer products
b)
demand for more products
c)
reduced demand for substitutes
d)
increased demand for complements
17.
The government's role in a mixed economy is that it is the
a)
definer of goals
b)
central planner
c)
regulator charged with preserving competition
d)
coordinator of basic economic activity
18.
The concept of voluntary exchange means
a)
that no money was exchanged
b)
people freely and willingly engage in market transactions.
c)
only workers will benefit from the exchange.
d)
neither buyer nor seller has made a profit.
19.
The minimum wage is an example of a federal law that supports
a)
economic growth
b)
exonomic equity
c)
full employment
d)
economic efficiency
20.
A market economy
a)
does not provide for everyone's basic needs.
b)
limits the choices of godds and services available.
c)
permits extensive government intervention.
d)
offers a high degree of certainty for its workers.
21.
The United States can best be described as having a
a)
modified private enterprise system.
b)
traditional system.
c)
command economy.
d)
pure free enterprise system.
22.
Which group of people ultimately determines the products that a free enterprise economy produces?
a)
Congress
b)
property owners
c)
local government
d)
consumers
23.
An example of a market economy is
a)
the Inuit
b)
the former Soviet Union
c)
the United States
d)
North Korea
24.
Rent payments and property taxes would be counted as
a)
total cost
b)
variable costs
c)
fixed costs
d)
marginal costs
25.
The theory of production deals with the relationship between the factors of production and
a)
the cost of raw materials
b)
the cost of marginal returns
c)
fixed costs
d)
the output of goods and services
26.
When producers offer fewer products for sale at each and every price.
a)
the supply curve has shifted to teh right
b)
the supply curve has shifted to the left.
c)
the price per unit decreases.
d)
they expect subsidies.
27.
The level of profit-maximizing output is reached when marginal cost is
a)
double marginal revenue.
b)
one-half of marginal revenue.
c)
less than margianal revenue.
d)
equal to marginal revenue.
28.
Total cost is the sum of the
a)
fixed costs and overhead
b)
all variable costs
c)
fixed and variable costs
d)
fixed and marginal costs
29.
When employees are getting in each others way, the firm is operating
a)
in stage I of production
b)
in stage II of production
c)
in stage III of production
d)
as much as it possible can
30.
The supply of a product normally decreases if
a)
the cost of inputs goes down
b)
more producers enter the market.
c)
the price of the product increases.
d)
taxes on the product increase.
31.
When a manufacturer of pain medication reduced the price of the medication by 30%, profits declined by almost exactly 30%. Demand for the product is
a)
inelastic
b)
elastic
c)
unit elastic
d)
complementary
32.
When a customer's need for a product is not urgent, demand tends to be
a)
inelastic
b)
elastic
c)
unit elastic
d)
complementary
33.
An increase in the price of cameras results in a decrease in the demand for film. The two products are
a)
substitutes
b)
demand elastic
c)
unrealted
d)
complements
34.
Consumers' willingness to replace a costly item with a less costly item is an example of
a)
the substitution effect
b)
the income effect
c)
demand elasticity
d)
complements
35.
A demand schedule shows
a)
an upward-sloping curve that illustrates the positive relationship between price and quantity demanded.
b)
a listing of the various quantities demanded of a particular product at all prices that might prevail in tjhe market.
c)
the fluctuations in demand that occurred over a specified period of time.
d)
the fluctuations in demand scheduled to occur over the following year.
36.
A decrease in competition within an industry can result in
a)
more efficient resource allocation
b)
lower prices
c)
a firm wielding economic and political power.
d)
increased output.
37.
A monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is a
a)
geographic monopoly
b)
natural monopoly
c)
government monopoly
d)
technological monopoly
38.
The theory of competitive pricing
a)
is an imperfect model of market performance.
b)
is a set of ideal conditions and outcomes.
c)
is ineffetive when large swings in price occur.
d)
demonstrates the need for subsidies and price ceilings.
39.
Prices enable a market economy to adjust to unexpected events by
a)
maintaining consumption and production at stable levels.
b)
government rationing
c)
ensuring that producers' always earn a profit.
d)
adjusting consumption and production.
40.
When economic or political conditions are unstable,
a)
the price of gold rises to $850 per ounce
b)
the supply of gold decreases.
c)
the price of gold decreases
d)
the demand for gold increases
41.
The federal minimum wage law demonstrates
a)
market equilibrium
b)
a societal choice for economic equity over efficiency.
c)
the function of equilibrium price in a competitive market.
d)
government intervention to ensure the equilibrium price.
42.
At a given price, a surplus occurs when
a)
the quantity demanded is more than the quantity supplied.
b)
the quantity demanded is the same as the quantity supplied.
c)
the quantity supplied is less thatn the quantity demanded.
d)
the quntity supplied is greater than the quantity demanded.
43.
In a market economy, a high price is a signal for
a)
producers to supply more and consumers to buy less.
b)
producers to supply less and consumers to buy more.
c)
government to intervene to protect consumers.
d)
producers to supply less and consumers to buy less.
44.
Profits will be maximized when marginal revenue
a)
is double marginal cost.
b)
equals marginal cost.
c)
is one-half marginal cost.
d)
exceeds marginal cost.
45.
Many businesses are engaging in e-commerce because
a)
subsidies are available to many e-commerce businesses.
b)
fixed costs are minimal.
c)
operating costs never increase.
d)
variable costs can be almost eliminated.
46.
The Clayton Antitrust Act
a)
was opposed by labor unions.
b)
defended monopolies
c)
outlawed price discrimination.
d)
never wet into effect.
47.
Mergers and acquisitions might result in
a)
more competition
b)
smaller companies
c)
increases in consumer demand.
d)
inadequate competition.
48.
When a major car company lowers its prices, other car makers will probably
a)
maintain existing prices
b)
raise their prices
c)
go out of business
d)
lower their prices
49.
The Sherman Antitrust Act
a)
outlawed restraints and monopolies that hindered trade.
b)
nationalized the railroads.
c)
established the FDA
d)
applied only to banking
50.
Under perfect competition,
a)
products are similar but not identical.
b)
numerous restrictions prevent firms from entering the market.
c)
no seller sellls a product above the prevailing market price.
d)
a single seller can effect price.
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