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WorksheetsEconomics Final Exam 2017
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
Scarcity is a problem because of the tension between limited resources and unlimited
a)
choice
b)
goods
c)
needs
d)
wants
2.
The term for the value of the next best alternative in an economic decision is
a)
cost-benefit analysis
b)
free lunch
c)
opportunity cost
d)
trade off
3.
An outward shift in a production possibilities curve could be caused by
a)
fewer resources available
b)
more resources available
c)
underutilization
d)
efficiency
4.
People are most likely to agree on economic goals and roles in a
a)
command economy
b)
market economy
c)
planned economy
d)
traditional economy
5.
In Marx's view, the factory owner's profit depends upon
a)
an efficient approach to the use of natural resources
b)
the degree of competition from other producers
c)
a favorable political climate
d)
the use of human labor as a commodity
6.
North Korea's economic problems stem mainly from
a)
prolonged drought
b)
misguided central planning
c)
out of date farming methods
d)
unrestricted free markets
7.
Private property rights are important in a market economy because
a)
are vital to any sale or exchange
b)
determine price levels
c)
encourage people to be generous
d)
let the government know whom to tax
8.
The United States has
a)
laissez faire capitalism
b)
laissez faire socialism
c)
a modified command economy
d)
a modified capitalist economy
9.
Customers of the factor markets are
a)
businesses
b)
households
c)
individuals
d)
workers
10.
Of the following nations, the country with a mixed economy that leans most toward socialism is
a)
France
b)
Namibia
c)
Sweden
d)
the United States
11.
Sometimes consumers buy less of one product because they buy a similar product at a lower price. What pattern of behavior does this example reflect?
a)
law of demand
b)
income effect
c)
law of diminishing marginal utility
d)
substitution effect
12.
The popularity of MP3 players led many broadcasters to begin offering podcasts of popular programs. Which factor that affects demand does this example illustrate?
a)
complements
b)
consumer income
c)
market size
d)
substitutes
13.
Which of these signals and incentives do shortages provide?
a)
It is a good time for consumers to buy as prices fall
b)
It is a good time for producers to raise prices
c)
It is time for producers to raise prices
d)
Prices are too high relative to consumer demand
14.
Which is a result of rent control?
a)
More new affordable housing is built
b)
The quality of housing improves
c)
Tenants are forced to move frequently
d)
There is a persistent shortage of housing
15.
Producers are willing to sell more goods and services at higher than at lower prices. Which law does this statement reflect?
a)
demand
b)
diminishing marginal utility
c)
increasing returns
d)
supply
16.
A business experiences negative returns when the hiring of new workers causes total
a)
costs to decline
b)
costs to increase rapidly
c)
output to decrease
d)
output to increase slowly
17.
If the price of apples falls from $2 per pound to $1 per pound, the Jones family brings half as many pounds to sell at the farmer's market. This example shows a change in
a)
costs of production
b)
market size
c)
quantity supplied
d)
supply
18.
Growth of Internet allowed mail order clothing companies to increase the amount of clothing they sold. This change in supply was due to
a)
government action
b)
number of producers
c)
producer price expectations
d)
technology
19.
The distinguishing characteristics of monopolistic competition are
a)
few sellers and significant control of prices
b)
informed buyers and standardized products
c)
price making and restricted markets
d)
product differentiation and nonprice competition
20.
A monopoly in which a single supplier is the most efficient way to provide a good or service is a
a)
geographic monopoly
b)
government monopoly
c)
natural monopoly
d)
technological monopoly
21.
The most common type of business organization in the United States is the
a)
corporation
b)
franchise
c)
general partnership
d)
sole proprietorship
22.
The type of business organization that has the greatest access to resources is the
a)
cooperative
b)
corporation
c)
general partnership
d)
nonprofit organization
23.
One of the major disadvantages of corporations is
a)
double taxation
b)
limited liability
c)
limited life
d)
over specialization
24.
The merger of two corporations that both provide telephone services is best described as a
a)
horizontal merger
b)
layered merger
c)
multinational merger
d)
vertical merger
25.
Corporations and nonprofit organizations both have
a)
a board of directors
b)
double taxation
c)
limited liability
d)
a large number of stockholders
26.
In a limited liability partnership, partners are responsible for
a)
nothing beyond their investment
b)
the debts and mistakes of all other partners
c)
the mistakes of all other partners
d)
their own mistakes
27.
If the hourly wage for technical support representatives falls from $15 to $13, the demand for technical support representatives will
a)
decrease
b)
increase
c)
reach equilibrium
d)
stay the same
28.
Legislation that has had a direct impact on wages is the
a)
Civil Rights Act
b)
Norris-LaGuardia Act
c)
Taft-Hartley Act
d)
Wagner Act
29.
The segment of the labor market that has grown the most since the mid-1950s is
a)
college graduates
b)
high school graduates
c)
women
d)
workers
30.
Unions organized according to the skills of member workers are called
a)
craft unions
b)
federated unions
c)
industrial unions
d)
progressive unions
31.
Which physical property of money allows sellers to make change?
a)
divisibility
b)
durability
c)
portability
d)
uiformity
32.
Which economic property of money refers to its use as a medium of exchange?
a)
acceptability
b)
portability
c)
scarcity
d)
stability
33.
Which function of money allows you to decide if you want to buy two $10 movie tickets or a $20 DVD
a)
medium of exchange
b)
standard of value
c)
store of value
d)
uniformity of currency
34.
Which statement best describes the original purpose of savings and loan associations?
a)
to allow the government to deposit tax receipts
b)
to allow savers to borrow money for homes
c)
to make loans to businesses
d)
to provide investment advice
35.
Which of these products does NOT allow people a way to save money and earn interest?
a)
certificate of deposit
b)
home mortgage
c)
money market account
d)
savings account
36.
Which of these cards provides an easy way for you to borrow money?
a)
ATM
b)
credit
c)
bebt
d)
stored value
37.
A financial intermediary that pools funds from many investors to purchase a range of financial assets for them is a
a)
finance company
b)
insurance company
c)
mutual fund
d)
pension fund
38.
As a means to save for emergencies, money market accounts offer the benefit of
a)
increasing in value over time
b)
liquidity
c)
locking in funds for a period of time
d)
tax-free earnings
39.
Investors who put all their money in investments with a guaranteed return still face the risk of
a)
corporations declaring bankruptcy
b)
economic factors affecting the value of stock
c)
losing purchasing power from inflation
d)
losing some of their principal
40.
A financial market where securities are bought and sold is a
a)
savings bank
b)
finance company
c)
insurance company
d)
stock exchange
41.
In the formula for determining Gross Domestic Product (C+I+G+X=GDP), X stands for what?
a)
exports
b)
external sales
c)
gross exports
d)
net exports
42.
GDP is an especially good estimate of
a)
nonmarket activities
b)
quality of life
c)
the economy's performance
d)
the mix of products and servi
43.
During the contraction phase of the business cycle,
a)
prices rise
b)
resources become less scarce
c)
resources become more scarce
d)
unemployment declines
44.
Falling interest rates will lead to
a)
decreased aggregate demand
b)
decreased spending
c)
increased aggregate demand
d)
increase savings
45.
Economic growth depends on
a)
building up the national treasury
b)
efficient and productive use of resources
c)
exporting more than importing
d)
growing populations
46.
The predictions of Thomas Malthus did not come true because
a)
agricultural productivity kept pace with population growth
b)
he failed to foresee the costs of economic growth
c)
agricultural productivity did not increase as quickly as thought
d)
population grew more quickly than he anticipated
47.
Those hardest hit by unemployment are
a)
females
b)
males
c)
the elderly
d)
the least experienced
48.
From 2000 to 2004, the poverty rate in the United States
a)
doubled
b)
dropped
c)
increased
d)
remained the same
49.
The best description of income distribution in the United States is that the
a)
highest quintile earns about 50% of the income
b)
highest quintile earns about 90% of the income
c)
lowest quintile earns about 20% of the ilowest two quintiles earn about 40%ncome
d)
lowest two quintiles earns about 40% of the income
50.
To make sure it is as accurate as possible, the market basket on which the Consumer Price Index is based is
a)
adjusted online everyday
b)
changed every month
c)
interchangeable with the goods in the producer price index
d)
weighted to reflect real spending
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