WorksheetsEcon. Final
Total questions: 80
Worksheet time: 57mins
Name
Class
Date
1.
In the circular flow model, what do individuals SELL to businesses
a)
Services
b)
Money
c)
Resources
d)
D Goods
2.
In the United States economy, what do businesses buy from consumers?
a)
Resources
b)
Interest
c)
goods
d)
services
3.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
4.
As prices go up, ______________ goes down.
a)
Supply
b)
Demand
c)
Utility
5.
What is meant by opportunity cost?
a)
The next best alternative foregone
b)
The cost of the item selected
c)
The cost of exploring business opportunities
d)
The labour used in producing the product
6.
What does a production possibility curve show?
a)
The prices of two types of products being produced
b)
The quantity of capital and consumer goods that people would like to be produced
c)
The maximum combination of two types of goods that can be produced with given resources.
d)
The relative profitability of capital and consumer goods
7.
Why does scarcity exist?
a)
Each year workers tend to produce less than previously
b)
Machines wear out in time
c)
There are not sufficient resources to meet everyone's wants
d)
There is a limit to people's wants
8.
Why will scarcity continue to be a problem in the future?
a)
Prices will rise
b)
Resources will always be finite
c)
Needs will decrease in the future
d)
World population will fall
9.
Command systems are most associated with this political system.
a)
Democracy
b)
Aristocracy
c)
Communism
d)
Constitutional Monarchy
10.
The this nation would be a prime example of a Command style economy,
a)
Canada
b)
France
c)
North Korea
d)
Brazil
11.
"Voluntary Exchange" is a major component to this type of system.
a)
Command
b)
Market
c)
Mixed
d)
Traditional
12.
Which of the following prevents the United States from being a "Market System"?
a)
Competition
b)
Socialism
c)
Profit driven attitudes
d)
Enforcement of minimum wage
13.
A ______ Externality occurs when a cost of production or consumption falls on a 3rd Party.
a)
Negative
b)
Neutral
c)
Positive
14.
A ______ Externality occurs when a benefit of production or consumption falls on a 3rd Party.
a)
Negative
b)
Neutral
c)
Positive
15.
Pollution released from a factory is an example of a ________ Externality
a)
Negative
b)
Neutral
c)
Positive
16.
Getting a flu shot is an example of a ________ Externality
a)
Negative
b)
Neutral
c)
Positive
17.
Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will
a)
increase
b)
decrease
c)
not be affected
18.
The U.S. government increased the income tax by 10%. What will happen to demand for inferior goods?
a)
increase
b)
decrease
c)
not be affected
19.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
20.
What does it mean when the demand for a good is inelastic?
a)
People will not buy the good when the price goes up
b)
a price increase has no significant impact on buying habits
c)
consumers are sensitive to the price of the good
d)
there are very few satisfactory substitutes for the good
21.
a government payment that supports a business
a)
mortgage
b)
personal loan
c)
income tax
d)
subsidy
22.
Government intervention in a market that affects the production of a good
a)
bull market
b)
regulation
c)
command
23.
For the law of supply, as price rises, what happens to quantity supplied?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
24.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
25.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
26.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
27.
If Michael Jordan did advertisements for Steak and Shake, this would cause the ___________ curve for Steak and Shake to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
28.
If the equilibrium price of a taxi ride is $30, but a taxi company tried to charge $40 for rides, this would result in a ________________ in taxis because supply is ___________ than demand.
a)
shortage.......lower
b)
shortage.....higher
c)
surplus.......lower
d)
surplus......higher
29.
At market equilibrium there is
a)
a shortage
b)
excess demand
c)
the same amount of supply and demand
d)
a surplus
30.
What is the equilibrium quantity in this graph?
a)
$1.50
b)
$1.00
c)
600
d)
800
31.
The maximum legal price that can be charged is called a
a)
price ceiling
b)
price floor
c)
price fan
d)
price stair
32.
A price ceiling of $20 would benefit ....
a)
consumers
b)
suppliers
c)
both
33.
What is the supply with a price floor of $60?
a)
50
b)
100
c)
150
d)
200
34.
Which type of market structures has many many producers(companies) that sell identical products and has no control over price?
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
35.
Which type of market structures has very few producers(companies) that control the majority of the market?
Hint: think of the soda market
Hint: think of the soda market
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
36.
In the 1990s, AT&T controlled 80% of the phone industry and was the ONLY provider of long distance phone service. This is an example of
a)
A monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
37.
Which is NOT a characteristic of a monopoly?
a)
Seller sets the market price
b)
Entry into the market is easy
c)
Firm sells a unique product
d)
One seller
38.
To minimize the risk of stock investing, an investor may choose to own a portfolio consisting of shares of stock from various companies in different industries. This strategy is known as:
a)
options trading
b)
diversification
c)
trading at a discount
d)
tax sheltering
39.
Which one of the following investment vehicles has the highest risk?
a)
stocks
b)
bonds
c)
money market accounts
d)
savings accounts
40.
When an investor lends money to a corporation or the government, he/she purchases:
a)
futures
b)
stocks
c)
options
d)
bonds
41.
Which of the following statements is true abut the advantage of buying mutual funds?
a)
they contain a large portion of cash in their portfolio
b)
mutual funds are guaranteed against loss
c)
they are complicated to purchase, so day traders avoid them
d)
they provide immediate diversification and asset allocation to the investor
42.
A broad term encompassing various investment instruments that represent ownership of an issuer's assets and debt
a)
securities
b)
asset
c)
common stock
d)
stock market
43.
How can you improve your credit score?
a)
Make payments on time
b)
Reduce overall debt
c)
Limit your applications
d)
All of the above
44.
The 3 credit bureaus that determine your FICO score are:
a)
Equifax, Transunion, and Experian
b)
Transamerican, Equality, Experience
c)
Transparcel, Equin, Faxqui
d)
Crederian, Equiunion, Experfax
45.
What is credit?
a)
Free money
b)
Borrowed money
c)
Standard of living
d)
A term that causes tears
46.
What is a credit score?
a)
A credit score is a three-digit numerical rating that reflects how likely you are to fail at paying your debts
b)
A five-digit numerical rating that reflects how likely you are to repay your debt.
c)
A three-digit numerical rating that reflects how likely you are to repay your debt.
d)
A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts
47.
The primary reason individuals start a business
a)
scarcity
b)
To Make Money
c)
Better Prices
d)
Cool Factor
48.
The legal form of business ownership that is owned by one person is called
a)
sole proprietorship
b)
partnership
c)
corporation
d)
limited liability company
49.
The legal form of business ownership that is owned by many people is called a ...
a)
sole proprietorship
b)
partnership
c)
corporation
d)
limited liability company
50.
The legal form of business ownership that is owned by two or more people is called a...
a)
sole proprietorship
b)
partnership
c)
corporation
d)
limited liability company
51.
are the extra things besides what you are paid that make the job worth considering.
a)
benefits
b)
paid vacations
c)
savings
d)
discounts
52.
The Smith family recently moved from Michigan to Ohio in search of a job for Mr. Smith. Money is tight. The move was expensive. The Smiths had to find an apartment, pay the first and last month’s rent, and pay the security deposit.They have very little money left over for food, and it seems that this could be a problem that will last for a while.
a)
Social Security
b)
Head Start
c)
Supplemental Nutrition Assistance Program (SNAP, also known as“food stamps”)
d)
Medicaid
53.
Leah has three children, and she can’t find work. She already receives Temporary Assistance for Needy Families and she receives food stamps. However, her youngest daughter needs to get her vaccinations, and those programs do not help with the doctor bills.
a)
Social Security
b)
Medicare
c)
Medicaid
d)
SNAP (Food Stamps)
54.
Mr. Rocko is retiring soon, so his regular paycheck from the company where he works will stop coming soon. He will, however, begin to receive some income from the government.
a)
Social Security
b)
SNAP (Food Stamps)
c)
Temporary Assistance to Needy Families (TANF)
d)
Head Start
55.
Bob was recently laid off from his job as a construction worker for the winter. He has tried to obtain employment for the winter months but has been unable to do so thus far. He is worried he will get behind on his bills.
a)
Unemployment
b)
Social Security
c)
Medicare
d)
SNAP (Food Stamps)
56.
Why would the U.S. government seek to limit the development of business monopolies?
a)
to guarantee low prices
b)
to encourage competition
c)
to increase production levels
d)
to improve hiring practices
57.
What was Henry Ford’s main contribution to U.S. industry?
a)
inventing rubber tires
b)
supporting worker safety laws
c)
perfecting the combustion engine
d)
utilizing the assembly line
58.
Collective bargaining is the
a)
practice used by employers to hire groups of laborers.
b)
practice used by employers to get the cheapest labor possible.
c)
idea that laborers working in groups are more productive in the workplace.
d)
idea that laborers acting together have greater success in negotiating with management.
59.
Which of the following is a strategy used by unions to force employers to meet labor demands?
a)
Injunctions
b)
Lock outs
c)
Scabs
d)
Strikes
60.
If my credit score is high at an 795, should I get a high interest rate or low?
a)
High Interest
b)
Low Interest
61.
Which is a franchisor?
a)
Starts a business
b)
Takes over a business
c)
Buys into an existing brand
d)
Allows others to use their brand name
62.
Which is a franchisee?
a)
Starts a business
b)
Takes over a business
c)
Buys into an existing brand
d)
Allows others to use their brand name
63.
LARGE corporations that have operation in SEVERAL countries is called . . .
a)
contract businesses
b)
multinationals
c)
mini-nationals
d)
franchise
64.
Paying the minimum payment on a credit card every month will:
a)
Pay a large percentage of the total balance owed every month
b)
Make the final amount paid substantially higher than the amount initially charged to the card
c)
help the cardholder create a plan for paying of a credit card in a decent amount of time
d)
allow the cardholder to avoid paying any interest charges
65.
Your aunt agrees to co-sign a car loan for you. By agreeing to co-sign your loan, your aunt has agreed to:
a)
Pay the loan if you cannot
b)
Share the payments with you
c)
Make the initial payments for you until you can start making them yourself
66.
The amount you pay for an insurance policy.
a)
Rider
b)
Premium
c)
Deductible
d)
Co-Pay
67.
The amount of money you have to pay out of your own pocket before the insurance pays is called the _____________
a)
Premium
b)
Estimate
c)
Deductible
d)
Co-Pay
68.
What type of GDP uses a base year's prices in order to make fair comparisons?
a)
GDP per capita
b)
Real GDP
c)
Nominal GDP
69.
High levels of GDP per capita indicate...
a)
Higher levels of happiness
b)
Higher standard of living
c)
Equal levels of wealth
d)
Self-sufficient communities
70.
Expectant parents buy supplies for the nursery. Would this be included in GDP?
a)
Yes - Consumer Spending
b)
Yes - Investment
c)
No - Intermediate goods
d)
No - Non-market activity
71.
The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?
a)
Yes - Consumer spending
b)
Yes - Government Spending
c)
No - Underground Economy
d)
No - Non-market activity
72.
Lauren coaches softball and gets paid in cash each week. Is this included in GDP?
a)
Yes - Consumer Spending
b)
Yes - Investment
c)
No - Underground Economy
d)
No - Purely financial transaction
73.
Which best describes Gross Domestic Product (GDP)?
a)
monetary value of all final (or "sold") goods/services within a nation in a particular year
b)
The total cost to produce all goods and services in a nation for the year
c)
monetary value of all the natural resources used in producing a year's output
74.
A significant decline in national output
a)
down turn
b)
recession
c)
depression
d)
economic trough
75.
A long-lasting good like a car or a refrigerator
a)
depreciation
b)
durable good
c)
appreciation
d)
non-durable good
76.
The process when capital ages and loses its value or worth.
a)
depression
b)
recession
c)
depreciation
d)
down turn in the economy
77.
Who creates programs to help if there is a high poverty rate or high unemployment rate?
a)
The people
b)
The Government
c)
Businesses
78.
Jeff was replaced by a computer. He is experiencing what type of unemployment?
a)
Cyclical
b)
Structural
c)
Seasonal
d)
Frictional
79.
An increase in the general level of prices is called
a)
Inflation
b)
Consumer Price Index
c)
Deflation
d)
Prime Rate
80.
If a price is above equilibrium price, it creates a...
a)
shortage
b)
surplus
c)
market price
d)
demand
100 %
