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WorksheetsEconomics Final Exam
Total questions: 90
Worksheet time: 4hrs 28mins
Name
Class
Date
1.
A business owned by two or more people is called a
a)
sole proprietorship
b)
corporation
c)
partnership
d)
conglomerate
2.
A business owned by people who have bought shares in it is called a
a)
corporation
b)
multinational
c)
partnership
d)
sole proprietorship
3.
What is a franchise?
a)
The right to vote
b)
A new business started from scratch by an entrepreneur.
c)
A book or movie series.
d)
A contract allowing an entrepreneur to open a location of an established business.
4.
A business is started by a document called a(n):
a)
Contract
b)
Constitution
c)
Charter
d)
Compact
5.
Where do business usually go for a loan?
a)
The owner's father
b)
The government
c)
An investment bank
6.
When a company first begins selling stock, this is known as its:
a)
Initial Public Offering
b)
New York Stock Exchange
c)
Sale Day
d)
Opening Bell
7.
What is the governing body of a corporation called?
a)
Board of Directors
b)
Board of Governors
c)
Stockholders
8.
"The Fed" refers to the....
a)
Federal Bureau of Investigation
b)
Federal Government
c)
Federal Reserve System
d)
Federal Income Tax
9.
In institution that accepts deposits and makes loans is defined as
a)
A bank
b)
Insurance
c)
Gambling
d)
A loan shark
10.
Franklin Roosevelt required all the nation's banks to close for inspection. This was called a:
a)
bank run
b)
margin call
c)
bank certificate
d)
bank holiday
11.
Something that must be accepted as payment for a debt is called
a)
Counterfeit
b)
Bootleg
c)
Legal Tender
12.
Who took the United States off the Gold Standard?
a)
Ronald Reagan
b)
Richard Nixon
c)
Lyndon Johnson
d)
John F. Kennedy
13.
The Fed keeps a certain amount of money out of circulation. This is referred to as....
a)
Reserve requirement
b)
Emergency Fund
c)
Stockpile
d)
Hoard
14.
Which part of the Fed decides when to raise or lower interest rates?
a)
Board of Governors
b)
Advisory Committee
c)
Chairman
d)
Federal Open Market Committee
15.
Which of the following is NOT a responsibility of the Fed?
a)
Printing Money
b)
Regulating Banks
c)
Lending money to civilians
d)
Financial Literacy
16.
The Fed is required by law not to lend out a certain portion of its money. This is a characteristic of the....
a)
Bank Holiday
b)
Fractional Reserve System
c)
FDIC
d)
Banking Act
17.
This economic model encourages lowering taxes on the wealthy and discourages the use of monetary policies to affect the economy.
a)
Supply-Side
b)
Demand-Side
c)
Voodoo Economics
d)
Keynesian
18.
This economic model advocated tax cuts for the middle and lower classes so that their spending money will circulate through the economy
a)
Supply side
b)
Demand Side
c)
Voodoo
d)
Reaganomics
19.
Money lent by a bank effectively becomes more money through repeated spending thanks to the....
a)
Entitlements
b)
deposit multiplier
c)
interest rates
20.
Influencing the economy through government taxing and spending is called:
a)
Fiscal policy
b)
Monetary policy
c)
Easy Money
d)
Tight Money
21.
Influencing the economy by changing the reserve requirement is called:
a)
Fiscal policy
b)
Monetary policy
c)
Tight Money
d)
Easy Money
22.
Increasing the reserve requirement has which of the following results:
a)
More is lent out and more is paid in interest
b)
More is lent out and less is paid back in interest
c)
Less is lent out and more is paid in interest
d)
Less is lent out and less is lent in interest.
23.
Lowering interest rates to stimulate the economy is called:
a)
Fiscal policy
b)
Monetary policy
c)
Easy Money
d)
Tight Money
24.
Money that enters the economy ends up being spent several times over. This is called the....
a)
Laffer curve
b)
Law of supply
c)
Price effect
d)
Multiplier effect
25.
Which economist favored government intervention in the economy?
a)
Glen Whitman
b)
John Maynard Keynes
c)
Adam Smith
d)
Ben Stein
26.
Which recent president favored supply-side economics?
a)
Richard Nixon
b)
Jimmy Carter
c)
Ronald Reagan
d)
Bill Clinton
27.
Which president tried unsuccessfully to implement wage-price controls?
a)
Richard Nixon
b)
Jimmy Carter
c)
Ronald Reagan
d)
Bill Clinton
28.
Does increasing the money supply cause inflation or deflation?
a)
Inflation
b)
Deflation
29.
Workers who have been looking for work so long that they have almost given up are called...
a)
Bums
b)
Discouraged
c)
Deadbeats
d)
Under-educated
30.
Unemployment due to not being qualified for the jobs being offered is called....
a)
Frictional
b)
Cyclical
c)
Structural
d)
Seasonal
31.
Temporary unemployment, as you might experience between jobs, is known as
a)
Frictional
b)
Cyclical
c)
Structural
d)
Seasonal
32.
Which of the following is not an economic indicator?
a)
Durable Goods
b)
Home sales
c)
Unemployment claims
d)
Homelessness
33.
An economy that is beginning to slow down is said to be in a
a)
Trough
b)
Peak
c)
Recession
d)
Recovery
34.
Which stage of the business cycle has businesses performing at their worst?
a)
Trough
b)
Peak
c)
Recession
d)
Recovery
35.
Which stage of the business cycle has businesses operating at their best?
a)
Trough
b)
Peak
c)
Recession
d)
Recovery
36.
When the government changes how much money is in circulation in the economy, it is using which kind of power?
a)
Fiscal policy
b)
Monetary policy
37.
When the government changes its spending habits or changes the tax rate to influence the economy, it is using which kind of power?
a)
Fiscal Policy
b)
Monetary Policy
38.
If lowering the price of an item doesn't result in more sales, demand is said to be.....
a)
Diminishing
b)
Increasing
c)
Marginal
d)
Inelastic
39.
The price of hot dogs has gone down. Consequently, people are also buying more buns, mustard and relish. This is because these items are....
a)
Supplementary
b)
Condiments
c)
Complementary
40.
If one item costs more than you are willing to spend, you can buy a similar item that costs less. This item would be called a(n).....
a)
Alternative
b)
Knock-off
c)
Store Brand
d)
Substitute
41.
Which describes Diminishing Marginal Utility?
a)
You're running out of money
b)
You like something better every time you use it.
c)
You get less satisfaction from each subsequent use of something.
42.
When a small change in price causes a dramatic change in demand, this is called....
a)
Equilibrium cost
b)
Opportunity Cost
c)
Inelasticity of Demand
d)
Elasticity of Demand
43.
Which accurately describes the Law of Demand
a)
People will by more of something if it costs more.
b)
People will avoid the cheapest products.
c)
People will buy more of something at lower prices
44.
This term describes when one quantity goes up while the other goes down
a)
Direct correlation
b)
Inverse relationship
45.
Having limited resources (time, money, etc.) is known as....
a)
Trade-off
b)
Economic Stability
c)
Scarcity
d)
Disincentive
46.
The study of individual consumers and businesses is called...
a)
Macro-economics
b)
Micro-economics
c)
Free Enterprise
d)
Profit Motive
47.
The study of the economy as a whole is called....
a)
Macro-economics
b)
Micro-economics
c)
Free Enterprise
d)
Profit Motive
48.
Any any decision, the alternatives given up are referred to as.....
a)
Expense
b)
Wants
c)
Needs
d)
Opportunity Cost
49.
Money moves from households into businesses, while businesses in exchange provide goods and services. This is called the....
a)
Circular Flow Model
b)
Circle of Life
c)
Timon
d)
Pumba
50.
Which of these is NOT one of the Pillars of Free Enterprise
a)
Trade-Offs
b)
Voluntary Exchange
c)
Entrepreneurship
d)
Private Property
51.
Wrote The Wealth of Nations
a)
Andrew Ridgley
b)
Alexis de Toqueville
c)
Adam Smith
d)
John Maynard Keynes
52.
A reward for making a certain decision is called a(n)
a)
profit
b)
good
c)
service
d)
incentive
53.
Which is not a function of money
a)
Medium of Exchange
b)
Barter
c)
Store of Value
d)
Measure of Value
54.
Because resources are scarce, people must _______ for goods and resources.
a)
compete
b)
cooperate
c)
fight
55.
What aspect of a product is adjusted to increase a business's profit, but also to make a product inexpensive enough for people to buy?
a)
Location
b)
Barter
c)
Exchange
d)
Price
56.
Anything you own, you can decide how to use, especially to make money (legally of course). This is the concept of
a)
socialism
b)
private property
c)
collectivism
d)
economic freedom
57.
Members of which group on the Federal Reserve organization chart must buy stock in a Federal Reserve bank?
a)
Board of Governors
b)
Federal Advisory Council
c)
Federal Open Market Committee
d)
Member Banks
58.
Which economic system has the government deciding what will be produced, how, and for who?
a)
Market
b)
Command
c)
Traditional
d)
Mixed
59.
Which economic system has decisions about what to produce, and for who decided by consumers and producers?
a)
Market
b)
Command
c)
Traditional
d)
Mixed
60.
The ability to choose your own living is called
a)
Equal Opprtunity
b)
Economic Growth
c)
Economic Freedom
d)
Efficieny
61.
The idea that, through economic activity, people should be able to meet their needs is called....
a)
economic equity
b)
price stability
c)
economic growth
d)
economic security
62.
When costs are neither too high for consumers to afford, nor too low for producers to make a profit, we are said to have....
a)
price stability
b)
economic security
c)
economic growth
d)
efficieny
63.
Which economic system answers the "what, how and who" through customs that are handed down through generations?
a)
Market
b)
Command
c)
Traditional
d)
Mixed
64.
The president of the United States appoints members of which group on the Federal Reserve organization chart?
a)
Federal Open Market Committee
b)
Federal Advisory Council
c)
Board of Governors
65.
Open market operations are
a)
the processes by which money enters into circulation.
b)
reserves greater than the required amounts
c)
the buying and selling of government securities to alter the supply of money.
d)
rates of interest banks charge on short-term loans to their best customers.
66.
Congress cutting taxes is an example of ....
a)
Fiscal Policy
b)
Monetary Policy
67.
Your teacher worked as a sales clerk at Macy's in the winter of 2003, after which he was out of work. This is known as....
a)
Frictional unemployment
b)
Structural unemployment
c)
Cyclical unemployment
d)
Seasonal unemnployment
68.
The total demand of all potential buyers is called the....
a)
Total Demand
b)
Equilibrium cost
c)
Market Demand
d)
Suggested Retail Price
69.
Which goal of an economic system refers to business growth and a high standard of living?
a)
Efficiency
b)
Full Employment
c)
Economic Growth
d)
Economic Equity
70.
Motivation that drives people to enter the market
a)
Consumption
b)
Greed
c)
Voluntary Exchange
d)
Entrepreneurship
71.
The unemployment rate combines with the inflation rate to give us the....
a)
misery index
b)
discomfort index
c)
Both misery and discomfort
d)
Neither misery nor discomfort
72.
the point at which demand and supply are equal
a)
market
b)
equilibrium
c)
GDP
d)
inflation
73.
A tax meant to discourage certain types of activities is called a....
a)
disincentive tax
b)
proportional tax
c)
sin tax
d)
tarriff
74.
The total amount of earnings before any deductions are taken out
a)
Gross Pay
b)
Net Pay
c)
After-tax Income
d)
Yucky Pay
75.
The amount of salary received after taxes and deductions
a)
Gross Pay
b)
Net Pay
c)
Total Earnings
d)
Bill
76.
With-holdings from paychecks that go to provide income support for people who are unemployed, disabled, or over age 65
a)
401k
b)
Social Security
c)
Medicare
d)
Medicaid
77.
Which type of tax comes directly out of your paycheck?
a)
Property Tax
b)
Sales Tax
c)
Income Tax
d)
Ad Valorem Tax
78.
Bruce makes $100,000 per year.
Steve makes $50,000 per year.
Tony makes $30,000 per year.
Bruce pays 30% in taxes, Steve pays 20%, and Tony pays 10%. This tax is
Steve makes $50,000 per year.
Tony makes $30,000 per year.
Bruce pays 30% in taxes, Steve pays 20%, and Tony pays 10%. This tax is
a)
Proportional
b)
Progressive
c)
Regressive
d)
I have no idea.
79.
A tax rate that decreases as income goes up is called....
a)
regressive
b)
progressive
c)
proportional
d)
flat
80.
When expenses exceed income
a)
Debt
b)
deficit
c)
revenue
d)
surplus
81.
When income exceeds expenses
a)
debt
b)
deficit
c)
revenue
d)
surplus
82.
Total of all the nation's borrowing to finance deficits
a)
Federal Income Tax
b)
Revenue
c)
National Debt
d)
Budget
83.
The idea that people should pay taxes based on the services they receive in return is called
a)
ability to pay principle
b)
benefit principle
c)
proportionality
84.
Taxes on the profits of an asset held for at least a year are called....
a)
Sales tax
b)
Capital Gains tax
c)
Income Tax
d)
Property Tax
85.
An Act of Congress that allows the spending of money for a specific purpose is called a(n)
a)
Budget
b)
Bill
c)
Appropriations Bill
86.
A tax on property being transferred after the owner's death is called the:
a)
Estate tax
b)
Excise tax
c)
Gift Tax
d)
Customs Duty
87.
Which type of tax funds local schools?
a)
Income Tax
b)
Sales Tax
c)
Property Tax
d)
Excise Tax
88.
A business owned by one person is called a(n):
a)
Club
b)
Corporation
c)
Partnership
d)
Sole Proprietorship
89.
What does limited liability mean?
a)
A business can only borrow a limited amount of money from a bank.
b)
The business has a limited number of partners.
c)
If the business fails, the onwers may lose the money they invested but none of their personal possessions.
90.
Corporations sell pieces of their business in exchange for money. These pieces of the business are called:
a)
Slices
b)
Stock
c)
Loans
d)
Partnerships
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