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WorksheetsQ1 Econ Review
Total questions: 29
Worksheet time: 17mins
Name
Class
Date
1.
How have the earnings of U.S. workers changed since 1980?
a)
Wages of all workers have gone up.
b)
Wages of all workers have gone down.
c)
Wages of only college graduates have gone up.
d)
Wages of only non-college graduates have gone up.
2.
The ways in which factors of production are combined determines the answer to which economic question?
a)
What will be produced?
b)
How will goods be produced?
c)
Who will consume goods?
d)
How can we provide a safety net?
3.
If a student volunteers at a nursing home after school, which of the following might be a negative externality?
a)
A student might volunteer to spend more time with the residents.
b)
A student might learn a new skill.
c)
A student might be unable to work at her part-time job on that afternoon.
d)
A student would feel good about herself.
4.
To improve its standard of living, a nation’s economy must
a)
remain stable
b)
grow through innovation
c)
reach economic equity
d)
allow the central government to make economic decisions
5.
Which of the following is the kind of decision that can be made at the margin?
a)
whether or not to hire new workers
b)
whether or not to go on a vacation
c)
whether or not to build an extra room on a home
d)
whether or not to have a dog or a cat as a pet
6.
The line on a production possibilities curve showing the relative amounts of two types of goods produced using all resources is called the
a)
production possibilities frontier
b)
opportunity cost line
c)
utilization of resources
d)
maximum possible production line
7.
Which of the following is an example of changing physical capital?
a)
hiring more workers to do a job
b)
building extra space in a factory
c)
switching to cheaper fuel
d)
lowering workers' wages
8.
A new runway has opened up at the airport, and citizens complain to local officials that the noise of the airplanes is disturbing their neighborhood. The noise is an example
a)
positive externality
b)
free-rider problem
c)
negative externality
d)
market failiure
9.
What basic principles are fundamental to American free enterprise?
a)
state-owned property, contracts, voluntary exchange, self-interest
b)
economic freedom, private property, protection from competition
c)
open opportunity, private property, contracts, voluntary exchange
d)
economic freedom, private property, mandatory exchange
10.
When government intervention causes the supply of a good to rise, what happens to the supply curve?
a)
It shifts to the left
b)
It shifts to the right
c)
it reverses direction
d)
the supply curve is not affected
11.
Which is a positive externality of a new high school?
a)
more traffic on the roads
b)
student purchases at nearby stores
c)
a raise in property tax
d)
more noise in the neighborhood
12.
Which of the following is an example of changing physical capital?
a)
Hiring more workers to do a job
b)
building extra space in a factory
c)
switching to cheaper fuel
d)
lowering workers' wages
13.
Which of the following are factors of production?
a)
capital and land
b)
scarcity and shortages
c)
technology and productivity
d)
economics and business decisions
14.
The economic concept of guns or butter means that
a)
a person can spend money on either sports equipment or food
b)
a company must decide whether to manufacture guns or butter
c)
a government must decide to produce more or less military or consumer goods
d)
a government can buy unlimited military and civilian goods if it is rich enough
15.
A decision is made at the margin when each alternative considers
a)
a different trade-off than the others
b)
where the most costly alternative will be
c)
what the "all or nothing" alternative will be
d)
cost and benefit ranked in progressive units
16.
A production possibilities curve shows the relationship between the production of
a)
farm goods and factory goods
b)
two type of farm goods
c)
two types of factory goods
d)
any two categories of goods
17.
Increasing the number of laborers in an economy generally causes a(n)
a)
increase in the PPC
b)
decrease in the PPC
c)
increase in the opportunity cost of production
d)
decrease in the opportunity cost of production
18.
When a theater owner considers whether to install another row of seating, she is
a)
underutilizing her resources
b)
experiencing a shortage
c)
using human capital
d)
thinking at the margin
19.
How does society determine who will get what is produced?
a)
by its distribution of income
b)
by factor payment amounts
c)
by its needs and wants
d)
by economic equity
20.
What do people supply in return for factor payments?
a)
innovation, profit, or goods
b)
land, labor, capital
c)
services, goods, traditions
d)
innovation, labor, trade
21.
Who owns the factors of production?
a)
households
b)
individuals
c)
firms
d)
the market
22.
Innovation often leads to which economic goal?
a)
economic freedom
b)
economic equity
c)
economic growth
d)
full employment
23.
What is profit motive?
a)
exchange of goods
b)
money that a business makes
c)
opportunity for success
d)
incentive to make money
24.
Which is an example of the law of demand at work?
a)
the price of pizza goes up when the price of cheese goes up
b)
demand for pizza goes down when tacos become more popular
c)
the price of pizza falls when demand for pizza falls
d)
demand for pizza rises then the price of pizza falls
25.
How does the substitution effect work when the price of an item drops?
a)
the item becomes less and less popular as price drops
b)
the substitutes for the item also suffer a drop in prices
c)
consumers buy the item as a substitute for other things
d)
consumers buy the item even if they do not particularly want it
26.
How might advertising shift the demand curve?
a)
by increasing the popularity of inferior goods
b)
by leading to a shift in demographics
c)
by allowing the law of demand to operate freely
d)
by helping to create fads and trends
27.
When gov't intervention causes the supply of a goods to rise, what happens to the supply curve?
a)
it shifts to the left
b)
it shifts to the right
c)
it reverses direction
d)
the curve is not affected
28.
Which of the following actions by the gov't constitutes a subsidy?
a)
a price floor on wages
b)
a payment to farmers for not cultivating land
c)
an excise tax on cigarettes
d)
a requirement to use land-free fuel
29.
What factors can affect wages?
a)
minimum wage laws
b)
safety laws
c)
labor unions
d)
all of the above
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