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Worksheetsnine weeks exam
Total questions: 94
Worksheet time: 2hrs 12mins
Name
Class
Date
1.
There are four types of economic systems. Most economies are _____.
a)
Traditional
b)
Command
c)
Market
d)
Mixed
2.
Someone who buys or uses a good or service is called a _____.
a)
producer
b)
clerk
c)
consumer
3.
Someone who makes goods or provides a service is called a _______.
a)
producer
b)
clerk
c)
consumer
4.
In this type of economy, the individual decides who to sell their products to.
a)
Traditional
b)
Mixed
c)
Market
d)
Command
5.
If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy.
a)
Traditional
b)
Market
c)
Command
d)
Mixed
6.
A person who owns a business is called....
a)
an entrepreneur
b)
a representative
c)
an educator
7.
________ is the most basic economic problem.
a)
Scarcity
b)
Labor
c)
Greed
d)
Capital
8.
Command, Free enterprise, and Socialism are all ...
a)
Economics systems
b)
Governments
c)
Laws
d)
Science Theories
9.
What is opportunity cost?
a)
your choice
b)
what I give up to make a choice
10.
A popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can’t make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?
a)
muffins
b)
cookies
11.
Emelia has been invited to a sleep over at Chloe’s house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloe’s house. What is the opportunity cost of her decision?
a)
seeing her favorite band
b)
spending time at a friends house
12.
Each society must determine how to best use its_______
a)
People
b)
Land
c)
Natural Resources
d)
All of the above
13.
A garbage truck driver is an example of which Factor of Production?
a)
labor
b)
land
c)
entrepreneurship
d)
capital
14.
The following items (accountant's computer, carpenter's drill, and a tailor's sewing machine) are all examples of which factor of production?
a)
capital
b)
entrepreneurshipt
c)
land
d)
labor
15.
The term "factors of production" means:
a)
things or skills needed to produce goods or services
b)
how we spend our money
c)
the resources of the government
d)
how society creates jobs
16.
Iron, minerals, coal and plants are examples of which productive resource?
a)
land
b)
labor
c)
entrepreneurship
d)
capital
17.
The term, "capital goods" means:
a)
Goods not created for their own use, but to make other goods/services.
b)
Work the people do to produce goods and services.
c)
Person who organizes the factors of production to produce goods/services; business owners.
d)
The natural resources used to produce goods or services.
18.
Tony Romo, quarterback for the Dallas Cowboys NFL team, would be considered which one of the 4 economic resources?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneurship
19.
What are the three economic questions?
a)
What to produce? How to produce? For whom to produce?
b)
Who to produce? Why you produce? Like to produce?
c)
Why to produce? Tell who to produce? Things to produce?
20.
Iron, minerals, coal and plants are examples of which productive resource?
a)
land
b)
labor
c)
entrepreneurship
d)
capital
21.
What is the production possibilities curve?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
22.
If a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what?
a)
They are being over efficient
b)
They are not efficient
c)
It is impossible
d)
None of the above
23.
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
24.
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
25.
What does point Y represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
26.
When you worry about the next instance or the additional unit
a)
Tragedy of the Commons
b)
Property Rights
c)
Marginal Analysis
d)
Incentives
27.
According to the rule of marginal analysis, one should continue producing a good or service until the
a)
marginal cost is equal to the marginal revenue.
b)
marginal cost is less than the marginal revenue.
c)
total cost is equal to the total revenue.
d)
total cost is more than the total revenue.
28.
The additional income received from each increase of one unit in sales is called the
a)
marginal benefit.
b)
marginal profit.
c)
marginal revenue.
d)
total revenue.
29.
The increase in expenses caused by producing an additional unit of something is called
a)
opportunity cost
b)
marginal cost
c)
variable cost
d)
fixed cost
30.
Expenses that do not change no matter how much a business produces are called
a)
opportunity cost
b)
marginal cost
c)
variable cost
d)
fixed cost
31.
In ___________________, custom and habits answer economic questions.
a)
command economy
b)
traditional economy
c)
market economy
d)
mixed market economy
32.
In ___________________, the government oversees market functions and provides some services.
a)
command economy
b)
traditional economy
c)
market economy
d)
mixed market economy
33.
In ___________________, the government agencies answer economic questions.
a)
command economy
b)
traditional economy
c)
market economy
d)
mixed market economy
34.
When someone or a business chooses to specialize or produce certain items.
a)
Entrepreneur
b)
Economics
c)
Voluntary Exchange
d)
Specialization
35.
When 2 people make a trade and feel they are better off because of that exchange.
a)
Tax
b)
Voluntary Exchange
c)
Economics
d)
Specialization
36.
In my Native American tribe, we use the skin of the buffalo for teepees, the fur for blankets, the meat for food, and the bones for tools.
a)
Freedom
b)
Efficiency
c)
Growth
d)
Security
37.
I decided to attend a specialty high school that offered experience in fixing cars so I could be an auto mechanic when I get older. I’ve wanted to be one since I was a little kid.
a)
security
b)
equity
c)
stability
d)
freedom
38.
My mom had to have surgery. Luckily she won’t have to pay the medical bills since she went to the government-run hospital. They even gave her the prescriptions at no cost.
a)
equity
b)
security
c)
freedom
d)
efficiency
39.
My restaurant has been so busy lately. So busy that I hired more waiters and added opened up a patio on the roof with additional seating.
a)
efficiency
b)
growth
c)
security
d)
stability
40.
I love the supermarket in my neighborhood. They always have what I need, and everything is so reasonably priced. It helps me keep to my budget, which helps me have money to pay my rent every month.
a)
stability
b)
freedom
c)
growth
d)
security
41.
I’ve been at my job now for 10 years. I work really hard, and always do what I am told. They just hired a new guy and his desk is right next to mine. He is late all the time, he is sloppy at putting together the packets we make, and he makes the same about of money as me. It makes me so mad.
a)
efficiency
b)
equity
c)
growth
d)
equity
42.
Businesses sell __________ to individuals and in return businesses earn a __________.
a)
products, profit
b)
businesses, individuals
c)
resources, profit
d)
income, profit
43.
__________ own resources.
a)
Businesses
b)
Individuals
c)
Profit
d)
Income
44.
In the circular flow model, the product market describes _____.
a)
stores that sell goods and services to households
b)
the government paying for public goods
c)
households selling their labor to businesses
d)
households receive income from businesses
45.
The "market clearing price is most closely associated with
a)
the price index
b)
the price level
c)
the price ceiling
d)
the equilibrium price
46.
What is created when prices are too low?
a)
surplus
b)
shortage
c)
equilibrium price
d)
subsidy
47.
What is the perfect price for a supplier to sell a product & make sure it does not stay for long periods in the store?
a)
surplus
b)
shortage
c)
equilibrium price
d)
subsidy
48.
What determines price & quantity produced of goods?
a)
supply
b)
demand
c)
consumers
d)
supply & demand
49.
What occurs when price and quantity move in opposite directions?
a)
law of supply*
b)
law of demand
c)
supply
d)
demand
50.
What is the desire to buy a good or service?
a)
supply
b)
demand
c)
law of demand
d)
law of supply
51.
What is a government payment for certain actions?
a)
tax
b)
profit
c)
tariff
d)
subsidy
52.
What is an elastic item?
a)
beanbags
b)
medication
c)
electricity
d)
milk
53.
What happens when satisfaction decreases?
a)
inelasticity
b)
elasticity
c)
price
d)
diminishing marginal utility
54.
What does not cause changes in demand?
a)
population
b)
cost in production
c)
competition
d)
complements
55.
Which is not a cause for supply to change?
a)
subsidy
b)
government regulations
c)
taste
d)
competition
56.
If the government says a business cannot charge higher than $3.00 for gas what control did they just place, on the businesses?
a)
Subsidy
b)
equilibrium price
c)
price floor
d)
price ceiling
57.
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
58.
When the selling price of a good goes up, what is the relationship to the quantity supplied?
a)
the cost of production goes up
b)
the profit made on each item goes up
c)
it becomes practical to produce more goods
d)
there is no relationship between the two
59.
what factor has the greatest influence on elasticity/ inelasticity of supply?
a)
profit
b)
time
c)
labor
d)
financing
60.
the cost of producing one more unit of a good
a)
fixed cost
b)
+1 cost
c)
marginal cost
d)
total cost
61.
A decrease in quantity demanded
a)
results in a movement downward and to the right along a demand curve.
b)
results in a movement upward and to the left along a demand curve.
c)
shifts the demand curve to the left.
d)
shifts the demand curve to the right.
62.
Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States?
a)
a decrease in the price of DVDs
b)
a decrease in the price of DVD players
c)
a change in consumer preferences toward watching movies in movie theaters rather than at home
d)
a decrease in the number of people in the United States
63.
The movement from Point A to Point B represents a(n)
a)
increase in the price.
b)
decrease in the quantity supplied.
c)
shift in the supply curve.
d)
Both Orange and Blue are correct.
64.
Which of the following would not shift the supply curve for iphones?
a)
an increase in the price of iphones
b)
a decrease in the number of sellers of iphone
c)
an increase in the price of plastic, an input into the production of iphones
d)
an improvement in the technology used to produce iphones
65.
Equilibrium quantity must decrease when demand
(the graph is not actually part of the question)
(the graph is not actually part of the question)
a)
increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.
b)
increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.
c)
decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.
d)
decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.
66.
Graph shows which of the following?
(actually use this graph to answer the question)
(actually use this graph to answer the question)
a)
a decrease in demand and a decrease in quantity supplied
b)
a decrease in demand and a decrease in supply
c)
a decrease in quantity demanded and a decrease in quantity supplied
d)
a decrease in quantity demanded and a decrease in supply
67.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
68.
The diagram represents a(n)
a)
increase in supply
b)
decrease in supply
c)
change in quantity supplied
d)
none of the above
69.
Which of the following is likely to increase the demand for peanut butter?
a)
Fewer children in the population
b)
News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
c)
A big increase in the price of jelly.
d)
A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
70.
Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?
a)
Pesticides on apples linked to mouth cancer.
b)
Storms destroy apple orchards.
c)
An apple a day really does keep the doctor away.
d)
New genetic strain leads to apple trees that produce twice as many apples.
71.
The Law of Demand says that price and quantity have a(n)
a)
direct relationship
b)
inverse relationship
c)
marginal utility
d)
diminishing utility
72.
Goods that are bought and used together are
a)
complementary goods
b)
substitute goods
c)
income goods
d)
unrelated goods
73.
When there is a shortage the price will usually?
a)
rise
b)
fall
c)
remain the same
d)
equilibrium
74.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
75.
The market equilibrium price is the price at which
a)
surpluses depress the number of goods supplied
b)
shortages and surpluses will have no effect on the market
c)
the government will not intervene in the market
d)
the quantity demanded is the same as the quantity supplied
76.
New technology advances the rate at which furniture can be assembled. Why does this change the supply?
a)
Change in cost of production
b)
Changes in number of producers
c)
Changes in expectations
77.
If a price floor was set at 320, what quantity would be purchased?
a)
20
b)
40
c)
60
d)
80
78.
What does this graph show?
a)
Shortage
b)
Surplus
c)
Supply Table
d)
Equilibrium
79.
Which scenario is an example of a monopoly?
a)
A local water company is the sole provider of water for a small town.
b)
A dry cleaner specializes in environmentally friendly cleaning methods.
c)
A farmer produces green beans for sale at a farmer's market.
d)
A small number of cereal companies produce most of the cereal on the market.
80.
Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions?
a)
perfect competition
b)
partnership
c)
sole proprietorship
d)
corporation
81.
A common disadvantage of a sole proprietorship is
a)
Difficulty starting the business
b)
The limited life of the business
c)
That the owner must share profits with others
d)
double taxation of earnings
82.
Which of the following is the definition for sole proprietorship
a)
business investment that involves renting or leasing another successful business model
b)
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
c)
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
d)
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
83.
Which of the following is the definition for Partnership?
a)
business investment that involves renting or leasing another successful business model
b)
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
c)
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
d)
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
84.
Which of the following is an advantage of a sole proprietorship
a)
easy to start up
b)
Decisions do not require the approval of a co-owner, boss, or other "higher-up
c)
the owner can keep the profits of successful management without having to share them with other owners.
d)
All the other options
85.
Which of the following is a disadvantage of a sole proprietorship?
a)
it is easy to start
b)
he owner is personally and fully responsible for all losses and debts of the business. If the business fails, the owner’s personal possessions may be taken away to satisfy business debts.
c)
requires a partner
d)
it is easy to raise the financial capital to start
86.
Which of the following is an advantage of a partnership?
a)
they are hard to start
b)
management is hard between two or more people
c)
partnerships can usually attract financial capital more easily than proprietorships.
d)
They are inefficient.
87.
Which of the following is a disadvantage of a partnership?
a)
If one partner causes the firm to suffer a huge loss, each partner is fully and personally responsible for the loss.
b)
When a partner dies or leaves, the partnership must be dissolved and reorganized as a new partnership if the remaining partners want to stay in business.
c)
the potential for conflict between partners.
d)
all the options are disadvantages
88.
Which of the following is an advantage of a corporation?
a)
all other answers are advantages.
b)
the corporation provides limited liability for its owners. This means that the corporation itself, not its owners, is fully responsible for its obligations.
c)
the corporation's board of directors can hire professional managers to run the firm. This means that the corporation's owners, its stockholders, can own a portion of the corporation without having to know much about the business itself.
d)
unlimited life, meaning that the corporation continues to exist even when shareholders sell their ownership shares of stock to someone else. Because the corporation is recognized as a separate legal entity, the name of the company stays the same, and the corporation continues to do business.
89.
This is a market dominated by a few large sellers
a)
oligopoly
b)
monopoly
c)
monopolistic competition
d)
perfect competition
90.
Nonprice competition is most important in which of the following markets?
a)
perfect competition
b)
oligopoly
c)
monopolistic competition
d)
monopoly
91.
U.S. agriculture is most closely associated with which of the following markets?
a)
monopolistic competition
b)
perfect competition
c)
monopoly
d)
oligopoly
92.
All of the following are features of perfect competition EXCEPT
a)
many buyers and sellers
b)
differentiated products
c)
buyers that are fully informed about price, quality, and availability of products.
d)
easy entry into & exit from the industry
93.
In this market structure, products are similar but have some differences. These slight differences allow producers to have some control over price.
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
94.
This type of monopoly exists because it is efficient to allow one producer to be the only provider. WE energies is the sole provider of electricity in Wisconsin and is an example of this.
a)
Franchise
b)
Patent/copy right
c)
Natural Monopoly
d)
Resource Monopoly
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