WorksheetsEconomics Final
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
Any resources that are made by humans and used to create other goods and services are called
a)
Services
b)
Production
c)
capital
d)
Labor
2.
The resources used to make all goods and services are the
a)
production possibilities.factors of production.
b)
factors of production.
c)
production trade-offs.
d)
opportunity costs.
3.
The purpose of a production possibilities graph is to
a)
enable a country to mobilize to win a war.
b)
keep an economy from having nonproductive workers.
c)
show alternative ways to use an economy’s resources
d)
make it possible to increase an economy’s output.
4.
The law of increasing costs means that when an economy increases the production of one item
a)
the opportunity cost goes up.
b)
the actual cost of making the item goes down.
c)
the actual cost goes up but the opportunity cost goes down.
d)
the production costs will increase also.
5.
The opportunity cost of a decision can be examined by using a
a)
production possibilities graph.
b)
factors of production chart.
c)
global trade-off grid.
d)
graph of increasing costs.
6.
Why are all goods and services scarce?
a)
Some goods cost more than others.
b)
All resources are scarce.
c)
Some things are needs and others are wants.
d)
Some people want to have more goods than others.
7.
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 to have a dog or a cat as a pet
8.
The greatest trade-off in a decision is called a
a)
opportunity cost
b)
Shortage
c)
Scarcity
d)
Trade-off
9.
What does a production possibilities frontier show?
a)
scarce and less scarce resources
b)
global trade-offs and costs of doing business
c)
an economy that is producing but not at the maximum
d)
the maximum amount that an economy can produce
10.
Which of the following makes someone an entrepreneur?
a)
earning a lot of money as a computer programmer
b)
becoming a highly paid dancer
c)
running a service that hires people to install sprinkler systems in lawns
d)
inventing and selling the rights to manufacture a computer game
11.
Which of the following is NOT characteristic of a centrally planned economy?
a)
The central government owns all land and capital.
b)
The central government makes all economic decisions.
c)
Each collective or factory sets its own goals.
d)
Each person is assigned a job.
12.
Why does even a free market economy need some government intervention?
a)
Why does even a free market economy need some government intervention?
b)
to ensure that the government has the freedom to tax as necessary
c)
to make sure that the government can fulfill its needs for military personnel
d)
so that the government has some control over factor resources
13.
What does the process of specialization do for an economy?
a)
It eliminates unemployment.
b)
It makes it more efficient.
c)
It fosters competition.
d)
It makes it easier to control.
14.
What is one of the most important advantages of a free market?
a)
It can change rapidly.
b)
It protects the less fortunate.
c)
It is easy to regulate.
d)
It encourages growth.
15.
Which of the following was a free market philosopher?
a)
Karl Marx
b)
Adam Smith
c)
Vladimir Lenin
d)
Friedrich Engels
16.
What is the product market?
a)
the market in which payments are received for selling products to consumers
b)
the market in which income is received for supplying land, labor, or capital
c)
the market in which firms purchase the factors of production from households
d)
the market in which households purchase the goods and services that firms produce
17.
In what kind of an economy does the government make all the decisions?
a)
Traditional
b)
Laissez faire
c)
centrally planned
d)
free enterprise
18.
What is the function of an economic system?
a)
to make sure all people have equal access to goods
b)
to produce and distribute goods and services
c)
to give all producers the same access to consumers
d)
to make sure people are paid for their labor
19.
An efficient economy fosters specific tasks for specific people. This is called...
a)
Specialization
b)
Unemployment
c)
Competition
d)
Underutilization
20.
An economic system that relies on habit, custom, or ritual to decide questions of consumption and production of goods and services is called a
a)
Free market Economy
b)
Traditional Economy
c)
Mixed Economy
d)
Command Economy
21.
Which of the following is a private organization that attempts to influence public officials to act or vote in ways that will benefit the group’s members?
a)
market research group
b)
free enterprise group
c)
public policy group
d)
interest group
22.
Why does the government use its powers to make sure that businesses disclose so much information to the public?
a)
to make buyers more knowledgeable and safer
b)
to make it hard for businesses to make an excess profit
c)
to make it easier for consumers to save money
d)
to make it easy for businesses to have good information
23.
What does the Temporary Assistance for Needy Families program provide?
a)
retirement income for the elderly
b)
cash to the states to help run their welfare programs
c)
compensation to all who lose jobs
d)
cash to workers injured on the job
24.
What best describes the role of government in a free enterprise system?
a)
Control business activities.
b)
Decide what companies will be formed and then allow the managers to run them.
c)
Allow individuals to operate their businesses in ways they think will maximize their profits.
d)
Require companies to disclose information to consumers.
25.
Which of the following is a critical rule for determining whether something is a public good?
a)
The benefit to each individual who uses the facility is greater than the cost.
b)
The benefits of the facility are greater for the society than for the individuals using it.
c)
The total benefits to society are greater than the total cost.
d)
The total cost is small for each individual taxpayer.
26.
One benefit of a sole proprietorship is that it allows owners to…
a)
Control business activities.
b)
Have limited liability
c)
Have a larger pool of capital
d)
Require companies to disclose information to consumers.
27.
When the stock market rises, it is called what type of market?
a)
Bear market
b)
Stagnant market
c)
Bull market
d)
Municipal libraries
28.
What protections does OSHA give to people in the United States?
a)
regulations on workplace safety and information about hazards in the workplace
b)
consumer protection in buying foods
c)
regulations about clean environment
d)
protection for certain key industries such as logging
29.
What is the term for the total value of all goods and services produced in a particular economy?
a)
net worth
b)
open market value
c)
gross domestic product
d)
standard of living
30.
A person who consumes a good or service but does not pay for it is called which of the following?
a)
a free rider
b)
A volunteer user
c)
a private consumer
d)
An entrepreneur
31.
GDP, or Gross Domestic Product, is calculated by totalling the total value of these goods produced in a country in a year.
a)
Intermediate good
b)
Final good
c)
Nondurable good
d)
Infinite good
32.
One of the limitations of calculating GDP comes from the sale of what type of process.
a)
Depreciation
b)
The Underground economy
c)
Real GDP
d)
Aggregate demand
33.
DVD players and refrigerators are examples of these types of goods.
a)
Durable goods
b)
Nondurable goods
c)
Intermediate goods
d)
Depreciated goods
34.
The sales tax in PA, .06%, is an example of what type of tax?
a)
Progressive Tax
b)
Proportional Tax
c)
Regressive Tax
d)
VAT Tax
35.
The concept that taxes should be simple and easy to understand is the characteristic of…
a)
Equality
b)
Unfair
c)
Elastic
d)
Simplicity
36.
The federal government takes money from your paycheck each week. What is this called?
a)
Income approach
b)
Entitlements
c)
Pay-as-you-earn
d)
Lump sum payment
37.
The government levies taxes on gasoline, cigarettes, alcohol, etc. These are called “sin” taxes, or…
a)
Estate taxes
b)
Gift taxes
c)
Import tax
d)
Excise tax
38.
The building of a bridge or new state building would be paid with money out of which budget?
a)
Operation budget
b)
Capital budget
c)
Day-to-day budget
d)
Federal budget
39.
School districts receive a majority of their revenue from what form of tax?
a)
Sales tax
b)
Income tax
c)
VAT tax
d)
Property tax
40.
When citizens file their taxes, they subtract money from their gross income. These deductions are called what?
a)
Taxable income
b)
Personal exemptions
c)
FICA
d)
Subsidies
41.
When a consumer is able and willing to buy a good or service, he or she creates which of the following?
a)
Consumption
b)
Demand
c)
Elasticity
d)
Allocation
42.
What are inferior goods?
a)
goods that are not well produced
b)
goods that no one wants to buy
c)
goods for which the demand rises when income falls
d)
goods for which the demand falls when income rises
43.
What determines how a change in prices will affect total revenue for a company?
a)
elasticity of demand
b)
the company’s pricing policy
c)
values of elasticity
d)
the consumers’ incomes
44.
Ceteris paribus, or “all other things held constant,” is an assumption that has which of the following effects on a demand schedule?
a)
It takes only prices into account.
b)
It considers the effects of all possible changes on demand.
c)
It is accurate no matter what changes occur.
d)
It is accurate only at one price level.
45.
How did the existence of the baby boom generation change demand in the United States?
a)
Demand was raised for different goods with each age the baby boomers reached.
b)
After they reached the teenage years, the baby boomers were integrated into the society and no longer affected demand.
c)
People were poorer because they had so many children, so demand was lowered.
d)
The baby boomers did not raise demand until they became adults, when they had their own money to spend.
46.
Which of the following is an example of lower production costs brought about by the use of technology?
a)
the delivery costs of gasoline to the consumer by diesel trucks
b)
the use of e-mail to replace slower surface mail
c)
the making of breads and pastries in local shops rather than large bakeries
d)
the importing of fresh vegetables from South America rather than using canned vegetables
47.
What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?
a)
sell the goods now and try to invest the money instead of resupplying
b)
sell the goods now but try to get the higher price for them
c)
store the goods until the price rises
d)
store the goods indefinitely regardless of when the price rises
48.
Which of the following is an example of a good with an inelastic supply?
a)
Beanbags
b)
Toothbrushes
c)
apples
d)
hats
49.
When the selling price of a good goes up, what is the relationship to the quantity supplied?
a)
The cost of production goes down.
b)
The profit made on each item goes down.
c)
It becomes practical to produce more goods.
d)
There is no relationship between the two.
50.
Which of the following is a fixed cost for a store?
a)
short-term workers
b)
Rent
c)
Advertising
d)
Money
100 %
