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WorksheetsEconomics Cumulative Review
Total questions: 48
Worksheet time: 2hrs 36mins
Name
Class
Date
1.
Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers
a)
are different.
b)
are equal.
c)
is higher for the product demanded.
d)
is higher for the product supplied.
2.
On the market demand and supply graph, the vertical axis shows
a)
demand.
b)
equilibrium.
c)
prices.
d)
quantity.
3.
On the demand and supply graph, the horizontal axis shows
a)
demand.
b)
equilibrium.
c)
prices.
d)
quantity.
4.
On the market demand and supply graph, the point of market equilibrium always happens
a)
at the highest point on the demand curve.
b)
where the demand and supply curves intersect.
c)
at the lowest point of the supply curve.
d)
at the center point of the graph, irrespective of the curves.
5.
When there is a shortage, producers raise prices in an attempt to
a)
separate the quantity supplied and demanded.
b)
raise the quantity demanded.
c)
equalize the quantity supplied and demanded.
d)
lower the quantity supplied.
6.
Suppliers often reduce prices in an attempt to
a)
have a shortage of products to sell.
b)
have a surplus of products to sell.
c)
want to decrease consumer demand.
d)
want to increase the product supply.
7.
In the price system of a market economy, prices are determined by
a)
central planning.
b)
market forces.
c)
political forces.
d)
private investors.
8.
A surplus happens when
a)
prices are too low relative to consumer demand.
b)
prices are too high relative to consumer demand.
c)
prices are too low relative to producer demand
d)
prices are too high relative to producer demand.
9.
Which of the following best describes the Law of Demand?
a)
As price goes down, demand goes down. (and vice versa).
b)
As price goes down, demand goes up (and vice versa).
c)
As demand goes down, supply goes up.
d)
As demand goes up, price becomes elastic.
10.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
11.
A decrease in the general level of prices.
a)
CPI
b)
Deflation
c)
Inflation
12.
At what phase of the business cycle would there be a high GDP?
a)
Peak
b)
Trough
c)
Contraction
d)
Depression
13.
At what phase of the business cycle would unemployment be extremely high?
a)
Peak
b)
Expansion
c)
Trough
d)
Contraction
14.
At what phase of the business cycle would inflation be increasing?
a)
Peak
b)
Trough
c)
Expansion
d)
Contraction
15.
Which type of GDP is adjusted for inflation, so that it won't be affected by rising prices?
a)
Real GDP
b)
Nominal GDP
c)
All of the above
d)
None of the above
16.
Which of the following is the correct equation for GDP?
a)
C+I+T+(X+M)
b)
C+I+G+(X+M)
c)
C+I+G+(X-M)
d)
C+I+T+(X+M)
17.
When Americans buy electronics from China, what part of the GDP equation does this count as?
a)
Consumption
b)
Investments
c)
Imports
d)
Exports
18.
When a company buys new computers for their business, what part of the GDP equation does this count as?
a)
Consumption
b)
Investments
c)
Imports
d)
Exports
19.
Which of the following would cause GDP to increase?
a)
When Ms. Heller buys a crappy old car from a used car dealership.
b)
When Timia makes $20 cash babysitting her brothers.
c)
When the government spends $1.3 million building a new bridge.
d)
When the Nike factory buys cloth to produce clothes.
20.
Money must be easy to carry.
a)
Durability
b)
Divisibility
c)
Store of Value
d)
Portability
21.
Which function of money encourages people to save money?
a)
Medium of Exchange
b)
Store of Value
c)
Unit of Account
d)
Acceptability
22.
Money that has value because the Government declared that it is money.
a)
Fiat Money
b)
Commodity Money
c)
Currency
d)
Coins
23.
Money must be scarce.
a)
Limited Supply
b)
Medium of Exchange
c)
Store of Value
d)
Fiat Money
24.
All units of money must be identical so that people recognize it.
a)
Divisibility
b)
Unit of Account
c)
Uniformity
d)
Portability
25.
Money that has value in itself (e.g. tobacco/salt)
a)
Fiat Money
b)
Commodity Money
c)
Currency
d)
Coins
26.
Money must be able to withstand the wear and tear of many people using it.
a)
Divisibility
b)
Durability
c)
Limited Supply
d)
Acceptability
27.
Trade is made easier because of this function of money that eliminates the need to barter (trade goods for goods).
a)
Store of Value
b)
Medium of Exchange
c)
Unit of Account
d)
Divisibility
28.
Soil, minerals, air, water, and coal are all examples of
a)
Fossil fules
b)
Conservation
c)
recycling
d)
natural resources
29.
What term describes the tools and technology used to make a product?
a)
capital goods
b)
human capital
c)
exports
d)
imports
30.
A person that takes a risk by starting a new business.
a)
human capital
b)
capital goods
c)
entreprenuer
d)
tariff
31.
Choosing to make cars instead of trucks results in
a)
opportunity cost
b)
increased wealth
c)
expanding the production possibilities curve
d)
TINSTAAFL rating upgrade
32.
________ is the most basic economic problem.
a)
Scarcity
b)
Labor
c)
Greed
d)
Capital
33.
Which of the following is NOT one of the three basic questions of economics when looking at economic systems?
a)
What goods should be produced ?
b)
What is the price of the goods?
c)
How should the goods be produced?
d)
Who gets to consume the goods?
34.
The use of taxes and government spending to affect the economy
a)
Monetary Policy
b)
Fiscal Policy
c)
Contractionary Policy
d)
Expansionary Policy
35.
a plan to reduce aggregate demand and slow the economy
a)
Contractionary Fiscal Policy
b)
Expansionary Fiscal Policy
c)
Contractionary Monetary Policy
d)
Expansionary Monetary Policy
36.
a plan to increase aggregate demand and stimulate the economy
a)
Contractionary Fiscal Policy
b)
Expansionary Fiscal Policy
c)
Contractionary Monetary Policy
d)
Expansionary Monetary Policy
37.
What term describes the Federal Reserve’s control of the money supply by adjusting interest rates?
a)
Fiscal Policy
b)
Federal Control
c)
Monetary Policy
d)
banking
38.
Who controls the monetary policy?
a)
The President
b)
Federal Government
c)
Federal Reserve
d)
Mr. Shinn
39.
In a traditional economy, how are economic decisions made?
a)
custom and habit
b)
government leaders
c)
consumers and planners
d)
combination of consumers and producers
40.
Which would be a problem for a community with a traditional economy?
a)
People in the village find ways to make their products more efficiently
b)
The price of advanced electronics, like computers, begins to rise rapidly.
c)
People in the country begin to want and need products that cannot be made or traded locally
d)
Older villagers take on younger workers to learn to make the products they have been producing.
41.
In a command economy, how are economic decisions made?
a)
custom and habit
b)
government planners
c)
consumers and the market
d)
combination of consumers and planners
42.
Which would be a problem in a command economy?
a)
People would get rich
b)
Local crafts would be produced before manufactured goods.
c)
Individual business people would risk their own money to produce goods
d)
A worker trying to start a new business on his or her own would need permission
43.
In a market economy, how are decisions made?
a)
custom and habit
b)
government planners
c)
consumers and the market
d)
individuals starting new business
44.
Who takes the financial risk in starting a new business in a market economy?
a)
Consumers
b)
government planners
c)
individual business people
d)
combination of planners and investors
45.
Why are most modern economies referred to as mixed economies?
a)
Poverty is always highest in countries with market economies.
b)
Government planners do not know how to handle economic problems
c)
Products made by traditional economies have no markets in the modern world
d)
Most countries have aspects of all three economic types at work in their economies
46.
The total amount you earn before any deductions are subtracted is called __________ pay.
a)
Bonus
b)
Gross
c)
Incentive
d)
Net
47.
The amount of salary received after taxes and deductions
a)
Gross Pay
b)
Net Pay
c)
Total Earnings
d)
Bill
48.
Which type of tax comes directly out of your paycheck?
a)
Property Tax
b)
Sales Tax
c)
Income Tax
d)
Ad Valorem Tax
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