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WorksheetsEconomics Review
Total questions: 81
Worksheet time: 41mins
Name
Class
Date
1.
The actual purpose of the Federal Reserve System is to
a)
promote African-American full employment
b)
demonstrate equilibrium
c)
concentrate power in Washington and New York.
d)
all of these
2.
The economy is ruled by unknowable animal spirits and there is little point in understanding the causes of recession. One must simply use government to shovel money into C, or I, or G in order to boost Y
a)
F.A. Hayek
b)
John Maynard Keynes
c)
Carl Menger
d)
Lionel Robins
3.
Prices are not levels that set value; they are metrics that respond to value.
a)
F.A. Hayek
b)
John Maynard Keynes
c)
Carl Menger
d)
Antony Davies
4.
This economist is called:
a)
Carl Menger
b)
F.A. Hayek
c)
John Maynard Keynes
d)
Lionel Robbins
5.
This economics is called:
a)
Antony Davies
b)
John Maynard Keynes
c)
Lionel Robbins
d)
F.A. Hayek
6.
Economics is about the allocation of scarce resources that have alternative uses.
a)
Antony Davies
b)
John Maynard Keynes
c)
F.A. Hayek
d)
Lionel Robbins
7.
Consumption plus Investment plus Government plus Net Exports (Exports minus Imports)
a)
Gross Domestic Product
b)
Gross National Product
c)
Net National Income
d)
mercantilism
8.
This chart shows:
a)
The equilibrium point
b)
supply curve only
c)
demand curve only
d)
indifference curves
9.
a)
This chart shows an elastic supply
b)
This chart shows an inelastic supply
c)
both these
d)
neither of these
10.
a)
As price increases greatly supply increase not much at all
b)
As price increases a little the supply increases greatly
11.
a)
Elastic supply
b)
Elastic demand
c)
Inelastic supply
d)
Inelastic demand
12.
a)
Inelastic demand
b)
Elastic demand
c)
As price increases a little supply increase much
d)
As price increases a greatly supply does not increase much as all.
13.
a)
Perfectly elastic demand
b)
Perfectly inelastic demand
c)
Perfectly elastic supply
d)
Perfectly inelastic supply
14.
a)
Regardless of the fact that the price hasn't changes supply can increase or decrease with the mere willingness of people to buy.
b)
An increase in price will not increase supply
c)
Perfectly elastic demand
d)
Perfectly inelastic demand
15.
a)
A supply schedule for music downloads
b)
A supply schedule for fine concert pianos.
c)
Perfectly elastic demand
d)
Perfectly inelastic demand
16.
a)
perfectly inelastic demand
b)
inelastic supply
c)
inelastic demand
d)
perfectly inelastic supply
17.
a)
Gummy Bears
b)
Picasso Paintings
c)
yachts
d)
mansions
18.
a)
pianos
b)
gummy bears
c)
life saving medicine and treatment
d)
tacos
19.
a)
life saving medicine
b)
music downloads
c)
vacations in Mexico
d)
houses in Modesto
20.
a)
With a move from S to S1 there is a reduction in price.
b)
With a move from S to S1 there is a increase in price.
c)
bananas
d)
figs
21.
a)
With a move from S1 to S there is a reduction in price.
b)
With a move from S1 to S there is a increase in price.
c)
bananas
d)
figs
22.
a)
The number sold between A and B has increased but the price has not increased.
b)
The number sold between A and B has increased and the price has increased as well.
c)
Kitty cat
d)
porky pig
23.
a)
The demand has decreased and te price has remained the same
b)
The demand has increased
c)
The demand for the good or service has gone down but the price has remained the same
d)
supply and demand are in equilibrium
24.
From million dollar checks to $500 bills to pennies this money is
a)
durable
b)
portable
c)
not easily duplicated
d)
dividable
25.
Gold is difficult to find. Even with the price of gold increasing it is not necessarily profitable to mine it.
a)
durable
b)
portable
c)
not easily duplicated
d)
dividable
26.
I can carry thousands of dollars in my pocket. I can carry millions in my checkbook and I can transfer billions with my little computer.
a)
durable
b)
portable
c)
not easily duplicated
d)
dividable
27.
Cowry shells were different from paper money in that they are:
a)
durable
b)
portable
c)
not easily duplicated
d)
dividable
28.
a)
D1 to D2 represents a decline in demand over time without a price change
b)
D1 to D2 represents a decline in demand over time with a price change
c)
D1 to D2 represents a increase in demand over time without a price change
d)
D1 to D2 represents a decline in demand over time with a great price increase
29.
a)
D1 to D3 represents a decline in demand over time without a price change
b)
D1 to D3 represents a decline in demand over time with a price change
c)
D1 to D3 represents a increase in demand over time without a price change
d)
D1 to D3 represents a decline in demand over time with a great price increase
30.
a)
From the left side to the right side there is indifference curve
b)
From the left side to the right side there is a product such as a smart phone
c)
From the left side to the right side there is a product such as a typewriter or adding machine
d)
From the left side to the right side there is a situation
31.
a)
From the right to left side to the right side there is indifference curve
b)
From the right to left side to the right side there is a supply curve
c)
From the right side to the left side there is a product such as a smart phone
d)
From the right side to the left side there is a situation
32.
a)
Demand for a luxuries
b)
Demand for necessities
c)
Supply for difficult hand crafted products
d)
Supply for items and services that are easy to duplicate
33.
a)
Demand for a luxuries
b)
Demand for necessities
c)
Supply for difficult hand crafted products
d)
Supply for items and services that are easy to duplicate
34.
a)
money of the people that cannot be easily duplicated so government cannot devalue our money for their warfare and welfare schemes
b)
Money for government inflation schemes
c)
chocolate coins
d)
arcade tokens
35.
a)
cognitively routine
b)
cognitively non-routine
c)
physically routine
d)
physically non-routine
36.
a)
cognitively routine
b)
cognitively non-routine
c)
physically routine
d)
physically non-routine
37.
a)
cognitively routine
b)
cognitively non-routine
c)
physically routine
d)
physically non-routine
38.
a)
cognitively routine
b)
cognitively non-routine
c)
physically routine
d)
physically non-routine
39.
a)
Secure Private Property Rights
b)
Tragedy of the Commons
40.
a)
Secure Private Property Rights
b)
Tragedy of the Commons
41.
a)
primary sector of the economy
b)
secondary sector of the economy
c)
tertiary sector of the economy
d)
quaternary sector of the economy
42.
a)
primary sector of the economy
b)
secondary sector of the economy
c)
tertiary sector of the economy
d)
quaternary sector of the economy
43.
a)
primary sector of the economy
b)
secondary sector of the economy
c)
tertiary sector of the economy
d)
quaternary sector of the economy
44.
a)
primary sector of the economy
b)
secondary sector of the economy
c)
tertiary sector of the economy
d)
quaternary sector of the economy
45.
a)
primary sector of the economy
b)
secondary sector of the economy
c)
tertiary sector of the economy
d)
quaternary sector of the economy
46.
a)
primary sector of the economy
b)
secondary sector of the economy
c)
tertiary sector of the economy
d)
quaternary sector of the economy
47.
a)
primary sector of the economy
b)
secondary sector of the economy
c)
tertiary sector of the economy
d)
quaternary sector of the economy
48.
a)
primary sector of the economy
b)
secondary sector of the economy
c)
tertiary sector of the economy
d)
quaternary sector of the economy
49.
Entrepreneurs tend to --- new products and those products tend to --- in price over time.
a)
introduce, decrease
b)
keep secret, increase
50.
Prices are not --- that set value they are --- that respond to value.
a)
levers, metrics
b)
metrics, levers
51.
Inflation which is the devaluation of our currency
a)
are caused by the Federal Government through the treasury and the Federal Reserve System
b)
Business people and entrepreneurs
52.
By selling government bonds the Federal Reserve
a)
puts inflated (devalued) money into the economy
b)
takes money out of the economy
53.
By buying government bonds the Federal Reserve
a)
puts inflated (devalued) money into the economy
b)
takes money out of the economy
54.
The Federal Reserve System is
a)
a series or private sector banks
b)
supposedly private, but in reality it is a 100% government controlled central bank
55.
a)
Durable Goods
b)
Non-durable Goods
c)
Service
d)
Structures
56.
a)
Durable Goods
b)
Non-durable Goods
c)
Service
d)
Structures
57.
a)
Durable Goods
b)
Non-durable Goods
c)
Service
d)
Structures
58.
a)
Durable Goods
b)
Non-durable Goods
c)
Service
d)
Structures
59.
The only truly destructive --- is a --- with a government grant of privilege against other competitors.
a)
Loss Aversion
b)
IKEA effect
c)
Backfire Effect
d)
Monopoly
60.
We value things that we build ourselves over identical things built by others.
a)
Loss Aversion
b)
IKEA effect
c)
Backfire Effect
d)
Monopoly
61.
We have a strong preference for what we already own over new opportunities to gain other things.
a)
Loss Aversion
b)
IKEA effect
c)
Backfire Effect
d)
Monopoly
62.
What protection teaches us is to do to ourselves in time of peace what enemies seek to do to us in time of war.”
a)
Henry George's point here is that trade is not aggression. Trade is done because the parties are mutually benefited by that trade.
b)
Trade, properly understood is like warfare and we should attempt to preserve all productive capacities within the borders of our nation
63.
Rent Control
a)
is a price ceiling that has the effect of making certain that no new housing is built for low income people.
b)
is a benefit for the poor that gives housing providers to create more housing for the poor.
64.
minimum wage law
a)
a price floor that guarantees young and unskilled workers are hired first before anyone else - thus giving them a chance to advance themselves.
b)
a price floors is a government policy that makes certain that young and unskilled workers will not find jobs.
65.
Bronx
a)
This is the result of World War II
b)
This is the result of the great Chicago Fire
c)
This is a result of free markets
d)
This is the result of Rent Control
66.
Creative Destruction means
a)
Out with the old and in with the new.
b)
Finding better ways to burn down houses
c)
Destroying things in a weird, but creative way
d)
Old and less effective ways of doing things and old products must be terminated so that workers and resources can be reallocated to the production of things people actually want.
67.
There is more innovation in computer and internet technology in the United States than in France because:
a)
The United States protected its government sponsored internet technology and the France did not
b)
France protected its government sponsored internet technology and the United States did not - allowing a free market in computers and internet services.
68.
animal spirits
a)
the bear (slow down) the bull (speed up)
b)
gaining the wisdom of animals by eating them
69.
a)
Symbol of a booming economy
b)
Symbol of slowing economy
70.
a)
Symbol of a booming economy
b)
Symbol of slowing economy
71.
Government-caused destruction of natural disasters cause a situation in which one cannot get a good or service at any price.
a)
shortage
b)
scarcity
72.
All goods and services are available at a price. You must exchange something of value to someone else in order to get it but it is there for a price.
a)
shortage
b)
scarcity
73.
The idea that a good or service has value because of the labor that is dissipated into the production of that good or service.
a)
Labor theory of value
b)
Intrinsic theory of value
c)
Marginal utility
d)
Diminishing marginal utility
74.
A unit of a good or service has value, but each additional unit might have diminished value as the utility diminishes.
a)
Labor theory of value
b)
Intrinsic theory of value
c)
Marginal utility
d)
Diminishing marginal utility
75.
We are never asked to value all or a good or all of a service that is available. We are only asked to value the next useful unit of that good or service in an economic sense.
a)
Labor theory of value
b)
Intrinsic theory of value
c)
Marginal utility
d)
Diminishing marginal utility
76.
A good or service has an objective value that is agreed upon by everyone so everyone values that good or service equally.
a)
Labor theory of value
b)
Intrinsic theory of value
c)
Marginal utility
d)
Diminishing marginal utility
77.
Human do not tend to value things in cardinal numbers. We value our choices in terms of --- and those --- can change.
a)
objective numbers, objective numbers
b)
rank orders, rank orders
78.
Any choice to do one thing is the choice ---
a)
to spend time on something else
b)
pay attention to something else
c)
do something else
d)
spend money on something else
79.
Any choice to spend time on one thing is the choice not ---
a)
to spend time on something else
b)
pay attention to something else
c)
do something else
d)
spend money on something else
80.
Any choice to pay attention to something is the choice to not ---
a)
to spend time on something else
b)
pay attention to something else
c)
do something else
d)
spend money on something else
81.
Any choice to spend money to something is the choice to not ---
a)
to spend time on something else
b)
pay attention to something else
c)
do something else
d)
spend money on something else
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