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WorksheetsEconomics Final
Total questions: 50
Worksheet time: 36mins
Name
Class
Date
1.
What is Economics?
a)
The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources
b)
Employment, gross domestic product, inflation, economic growth, and the distribution of income
c)
Deals with behavior and decision making by small units, such as individuals and firms
d)
A rise in the general level of prices occurs, workers need more money to pay for good clothing and shelter
2.
What is Scarcity?
a)
Giving something up to have something else
b)
Extra cost of producing one additional unit of production
c)
The condition that results from society not having enough resources to produce all the things people would like to have
d)
A rise in the general level of prices occurs, workers need more money to pay for good clothing and shelter
3.
What are the 4 Factors of Production?
a)
Land, capital, money, entrepreneurs
b)
Land, capital, labor, entrepreneurs
c)
Capital, money, supply, demand
d)
Labor, capital, supply, demand
4.
What would be considered Land?
a)
Anything from the earth
b)
The space we occupy
c)
Natural resources
d)
All of the above
5.
How would you describe Capital?
a)
The natural resources used in the production of goods
b)
The tools, machinery, and factories used in the production of goods
c)
Just the tools used to make goods
d)
The location of the main body of government of a society.
6.
What is Labor?
a)
People with all of the efforts, abilities, and skills
b)
The people who are for hire for work
c)
People with all of the workmanship, skills, and work
d)
The act of performing work at any given time
7.
An Entrepreneur is ...
a)
A risk taker in search of profits who's initial investment must be returned
b)
A investor in search of profits who does something new with existing resources
c)
A investor in search of profits who's initial investment must be returned
d)
A risk taker in search of profits who does something new with existing resources
8.
How would you describe Opportunity Cost?
a)
The cost associated with any opportunity
b)
Giving the cost in order to have the opportunity
c)
The cost required in order to succeed
d)
Giving something up to have something else
9.
What is a PPC?
a)
Possible Production Curve
b)
Production Possibilities Curve
c)
Probable Projection Curve
d)
Projected Possibilities Frontier
10.
What does point B represent?
a)
Production at greater than the country's minimum potential
b)
Production is less than the country's minimum potential
c)
Production is greater than the country's maximum potential
d)
Production at the country's maximum potential
11.
What does point X represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
12.
What does point Y represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
13.
What is the Circular Flow Model?
a)
A model which shows the wealth that an economy generates
b)
A model which shows the wealth that the world generates
c)
A model that shows the recirculation of money in an economy
d)
A model that shows the debt that an economy generates
14.
What is the Law of Demand?
a)
Rule stating that the quantity demanded of a good or service does not vary with its availability
b)
Rule stating that the quantity demanded of a good or service does not vary with its price
c)
Rule stating that the quantity demanded of a good or service varies inversely with its availability
d)
Rule stating that the quantity demanded of a good or service varies inversely with its price
15.
What is the Law of Supply?
a)
The principle that suppliers will normally offer less for sale at high prices and more at lower prices
b)
The principle that suppliers will normally offer more for sale at high prices and less at lower prices
c)
The principle that suppliers will break the law if they do not supply
d)
The principle that suppliers must supply reguardless of price or or quantity
16.
What causes the demand curve to shift?
a)
The increase/decrease in need
b)
The increase/decrease in volume
c)
The increase/decrease in price
d)
The increase/decrease in production
17.
What causes the increase in supply?
a)
The increase/decrease in demand
b)
The increase/decrease in production
c)
The increase/decrease in volume
d)
The increase/decrease in price
18.
What is equilibrium?
a)
Where the quantity of goods supplied is equal to the quantity of goods demanded.
b)
Where the quantity of goods supplied is inequal to the quantity of goods demanded.
c)
A situation in which prices are relatively stable
d)
A situation in which prices always fluctuate
19.
What is Shortage?
a)
A situation in which the quantity demanded is greater than the quantity supplied at a given price
b)
A situation in which the quantity demanded is less than the quantity supplied at a given price
c)
A situation in which the quantity demanded is not offered by the manufacturer
d)
A situation in which the quantity demanded cannot meet the supply provided
20.
What is Surplus?
a)
A situation in which the quantity supplied is not met by the manufacturer
b)
A situation in which the quantity demanded is greater than the quantity demanded at a given price
c)
A situation in which the quantity supplied is less than the quantity demanded at a given price
d)
A situation in which the quantity supplied is greater than the quantity demanded at a given price
21.
What is a price ceiling?
a)
A minimum legal price in order to install a ceiling
b)
A maximum legal price in order to maintain agreement
c)
A maximum legal price that can be charged for a product
d)
A minimum legal price that can be charged for a product
22.
On the chart, which point represents a Shortage?
a)
A
b)
B
c)
C
d)
D
23.
On the chart, which point represents the equilibrium?
a)
A
b)
B
c)
C
d)
D
24.
On the chart, which point represents a Surplus?
a)
A
b)
B
c)
C
d)
D
25.
Which line represents Demand on the chart?
a)
D
b)
E
c)
F
d)
G
26.
Which line represents Supply on the chart?
a)
D
b)
E
c)
F
d)
G
27.
Which line represents a Price Ceiling on the chart?
a)
D
b)
E
c)
F
d)
G
28.
Which line represents a Price Floor on the chart?
a)
D
b)
E
c)
F
d)
G
29.
What are the characteristics of money?
a)
Durability, divisibility, limited availability, accountability
b)
Divisibility, durability, portability, accountability
c)
Limited availability, portability, durability, accountability
d)
Portability, durability, divisibility, limited availability
30.
What are marginal costs?
a)
Extra cost of producing one additional unit of production
b)
Additional cost associated with lack of demand
c)
Cost above and beyond normal associated costs
d)
Cost formed by excess production
31.
What is inflation?
a)
A fall in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter
b)
A rise in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter
c)
A fall in the general level of prices occurs, workers need less money to pay for goods, clothing and shelter
d)
A rise in the general level of prices occurs, workers need more money to pay for goods, clothing, and shelter
32.
Who is Adam Smith?
a)
A german economist
b)
A swedish economist
c)
A scottish economist
d)
A english economist
33.
What does the word "Laissez Faire" mean?
a)
The philosophy that government should not interfere with business activity
b)
The law stating that the government can at any time interfere with a business’s activity
c)
The philosophy that individuals should not interfere with government activity
d)
The law stating that the government cannot at any time interfere with a business’s activity
34.
What is a fixed cost?
a)
What is a fixed cost?
b)
Cost of purchasing that does not change when output changes
c)
Cost of production that does not change when output stays the same
d)
Cost of purchasing that changes when output changes
35.
What is variable cost?
a)
Cost that varies as output changes
b)
Cost that does not vary as output changes
c)
Cost that varies as production changes
d)
Cost that does not vary as output changes
36.
What is total cost?
a)
A. Variable plus fixed cost
b)
B. All cost associated with production
c)
C. All cost except for the cost of manufacturing
d)
A and B
37.
Income is the money that is paid to a person for goods,services, or investment
a)
True
b)
False
38.
Gross pay is the income after deductions have been taken away
a)
True
b)
False
39.
Using credit to by goods and services
a)
increases your future income
b)
does not have a date to be paid back
c)
forces you to spend future income
d)
none of the above
40.
A credit card
a)
is available to anyone who has a savings account at a bank or credit union
b)
always you to borrow an unlimited amount of money
c)
is the same as a credit card
d)
allows you to spend money that is loaned by a financial institution
41.
What is a draw back to using a credit card?
a)
high finance charges
b)
no finance charges
c)
cash back rewards
d)
no credit limits
42.
Do credit cards help establish credit?
a)
Yes
b)
No
43.
What is interest?
a)
It is how the lenders make money off of the loan.
b)
It is a percentage of how much you will have to repay.
c)
Both are correct
44.
This is a money you can get to pay for college, which has to be paid back.
a)
Scholarhip
b)
Grant
c)
Student Loan
d)
College Savings
45.
Those with a college degree, on average, earn thousands of more dollars/year when compared to those with just a HS dipolma
a)
True
b)
False
46.
Reasons for making a budget include:
a)
To keep track of your income and expenses.
b)
To achieve your long term goals.
c)
To have a spending plan.
d)
All of the above choices are correct.
47.
How can a cardholder avoid paying interest on a credit card?
a)
. Do not pay anything.
b)
Pay the minimum balance every month.
c)
Pay the minimum payment after the due date
d)
Pay the balance in full every month.
48.
Consumer Protection Laws safeguard the consumer from all the following EXCEPT:
a)
Deceptive advertising
b)
Fraudulent activities
c)
Theft by deception
d)
Shopping habits
49.
This is all media of exchange circulating in a country.
a)
coins
b)
cash
c)
currency
d)
deposits
50.
Who is on the one dollar bill?
a)
George Washington
b)
Thomas Jefferson
c)
Abraham Lincoln
d)
Alexander Hamilton
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