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Worksheets1st Nine Weeks Test Review
Total questions: 33
Worksheet time: 17mins
Name
Class
Date
1.
More international trade is now possible than in the past because of advancements in what area?
a)
Shipping
b)
All answers are correct
c)
Telecommunication
d)
Travel
2.
Workers for Big Factory Company are upset with their low wages and dangerous working conditions. But they live in a region with few other jobs. Which of the following groups would be most helpful to these workers?
a)
professional workers
b)
management training school
c)
right-to-work lobbying firm
d)
labor union
3.
The price of a popular shoe rises from $28 to $39 a pair. What will happen to demand for the shoe?
a)
It will disappear.
b)
It will remain constant.
c)
It will increase.
d)
It will decrease.
4.
How has the rise of white-collar jobs affected unions?
a)
The power of unions has increased as more white-collar workers join.
b)
Unions have become more professionalized.
c)
More unions jobs require a college education.
d)
Union membership has declined along with blue-collar jobs.
5.
In one community, people follow customs when producing goods. This community is an example of what kind of economy?
a)
free market economy
b)
centrally planned economy
c)
traditional economy
d)
command economy
6.
A town wants to repair a school in one of its poorest neighborhoods. To pay for it, citizens vote to raise taxes on households and businesses. What social goal best explains this economic decision?
a)
security
b)
growth
c)
freedom
d)
equity
7.
Which of the following is the best example of the law of supply?
a)
A catering company buys a new dishwasher to make its work easier.
b)
A milling company builds a new factory to process flour to export.
c)
A food producer increases the number of acres of wheat he grows to supply a milling company.
d)
When the price of a sandwich rises, the sandwich shop increases the quantity supplied.
8.
On which kinds of goods do governments generally place price ceilings?
a)
those that are not necessary but have become customary
b)
those that are cheap but could become more expensive without the ceiling
c)
those that are essential but too expensive for some consumers
d)
those that are essential and cheap
9.
In 1971 the American economy was suffering from a rapid increase in the cost of living. To combat this trend, the government temporarily froze all wages and prices. This action by the government is an example of
a)
disequilibrium.
b)
a price ceiling.
c)
a price floor.
d)
rationing.
10.
When the price of a product goes down, what happens ?
a)
Some producers produce less, and others drop out of the market.
b)
New firms enter the market as older ones drop out.
c)
Existing producers expand, and new producers enter the market.
d)
Existing firms continue their usual output but earn less.
11.
Which country has one of the freest market economy in the world?
a)
Switzerland
b)
Denmark
c)
France
d)
United States
12.
What effect do rising input costs have on the price of a good?
a)
It has no effect on the cost of the good.
b)
The good becomes dependent on government regulation.
c)
The good becomes more expensive to produce.
d)
The good becomes cheaper to produce.
13.
Union membership rose in the 1930s because
a)
that was the only way anyone could get a job.
b)
there were so many new jobs available.
c)
Congress passed laws favoring unions.
d)
businesses were too weak to fight the unions.
14.
Big Publisher Inc. is considering using e-mail instead of shipping printed materials to its long-distance workers. How will this move affect Big Publisher Inc.?
a)
At first, supply will rise, but then it will decrease.
b)
Costs will drop, but supply will remain the same.
c)
It should lower costs and increase supply.
d)
Supply and costs will probably both decrease.
15.
What is one reason many firms hire temporary workers to do a particular job?
a)
flexible work arrangements
b)
greater reliability
c)
higher productivity
d)
lower hiring and training costs
16.
What do businesses owners learn by multiplying the price they charge for a good by the quantity sold?
a)
total revenue for the good
b)
market demand for the good
c)
profit shares for employees
d)
elasticity of demand for the good
17.
What must a nation’s economy do in order to improve the standard of living?
a)
grow
b)
remain stable
c)
allow central planning
d)
reach economic equity
18.
Some people believe unions are no longer necessary. Which of the following sums up the argument that unions are not needed anymore?
a)
Employers and the government provide many things unions once fought for.
b)
Individual workers have greater power to get their demands met.
c)
Unions have historically done more harm than good to the economy.
d)
Unions do not succeed in achieving their goals.
19.
_______ use a variety of mathematical tools and equations to measure the health of the economy.
a)
Entrepreneurs
b)
Consumers
c)
Manufacturers
d)
Economists
20.
Advances in technology have reduced the cost of manufacturing MP3 players. If demand does not change,
a)
fewer MP3 players will be sold at a higher price.
b)
more MP3 players will be sold at a higher price.
c)
fewer MP3 players will be sold at a lower price.
d)
more MP3 players will be sold at a lower price.
21.
Which of the following is a summary of the basic economic questions?
a)
How, when, and from whom should consumers get what they want?
b)
When, where, and by whom should goods and services be produced?
c)
Who will buy which goods and services, and how much will they pay?
d)
What goods and services should be produced, how, and for whom?
22.
Which of these events would indicate a movement along a supply curve for batteries?
a)
Battery manufacturers raise the price of a package of AA batteries from $3.50 to $3.95.
b)
Workers at a major battery factory go on strike and stop production.
c)
A new trade agreement enables stores to import foreign batteries.
d)
A new law requires battery manufacturers to spend more money on environmentally safe batteries.
23.
How has the rise of white-collar jobs affected unions?
a)
Unions have become more professionalized.
b)
Union membership has declined along with blue-collar jobs.
c)
More unions jobs require a college education.
d)
The power of unions has increased as more white-collar workers join.
24.
Which of the following best describes the economy of the United States?
a)
free market
b)
mixed, but more centrally planned
c)
centrally planned
d)
mixed, but more like a free market
25.
If a worker changes from a data entry job to a computer programmer job, why might she expect her new job to pay better?
a)
It covers her union fees.
b)
It requires a high risk to the employee.
c)
It is in low demand.
d)
It involves a higher degree of skill.
26.
What did suppliers do when the supply of digital cameras increased?
a)
Suppliers decreased their inventory of digital cameras.
b)
Suppliers could not keep up with demand for cameras.
c)
Suppliers lowered prices on cameras.
d)
Suppliers lowered prices on cameras.
27.
Your demand for a good is inelastic if you consider the good to be
a)
normal.
b)
inferior.
c)
essential.
d)
replaceable.
28.
Which is a government subsidy?
a)
a minimum wage for farm workers
b)
a law on which crops can be grown
c)
a law on which crops can be grown an excise tax on soybeans
d)
a minimum price for soybeans
29.
Why does a government place price ceilings, such as rent control, on some “essential” goods?
a)
to keep people from starting new businesses
b)
to keep existing businesses from making large profits
c)
to keep demand for these goods lower than the market would
d)
to keep the goods from becoming too expensive
30.
How does the substitution effect work when the price of an item drops?
a)
Consumers buy the item as a substitute for other things.
b)
Consumers buy the item even if they do not particularly want it.
c)
The substitutes for the item also suffer a drop in prices.
d)
The item becomes less and less popular as price drops.
31.
The price of home computers rises. According to the law of supply, what will computer makers do?
a)
make fewer computers
b)
stop making computers
c)
make more computers
d)
make the same number of computers
32.
One problem with globalization is ________.
a)
all answers are correct
b)
increased cultural exchange
c)
increased trade
d)
increased interdependence
33.
Why did the U.S. government use rationing for some foods and consumer goods during World War II?
a)
to earn more money to support the military
b)
to guarantee each civilian a minimum standard of living in wartime
c)
because the British government had also decided on rationing
d)
increased into keep sellers from raising prices on necessary good ster dependence
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