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WorksheetsEconomics Final Exam
Total questions: 110
Worksheet time: 6hrs 30mins
Name
Class
Date
1.
What are the characteristics of a mixed economy?
a)
A. government is involved in the factor market
b)
B. private property exists
c)
C. Balances needs without freedom
d)
Both A and B
2.
In a Centrally Planned Economy:
a)
Government owns all the factors of production
b)
Does not achieve equity
c)
No consumer sovereignty
d)
All of the above
3.
Which Economist wrote the Wealth of Nations?
a)
Kanye West
b)
Benjamin Franklin
c)
Adam Smith
d)
John Adams
4.
In a free market economy which situation does not occur:
a)
Participants are only households and not firms
b)
Needed because no one is self sufficient.
c)
Regulation by self interest and completion exists
d)
Voluntary exchanges take place in markets
5.
The following are all economic goals except :
a)
Freedom
b)
Security and innovation
c)
Efficiency
d)
Growth and equity
6.
The structure of methods & principles society uses to produce & distribute goods & services is:
a)
A factor payment
b)
A safety Net
c)
A profit
d)
An economic system
7.
My Native American tribe uses buffalo skin for tepee, fur for blanket, meat for food & bone for tools
a)
Freedom
b)
Growth
c)
Efficiency
d)
Security
8.
I went to a school that gave lessons in fixing cars. I wanted to be a mechanic since I was a kid.
a)
security
b)
equity
c)
stability
d)
freedom
9.
My mom had surgery but we don’t have to pay a medical bill because she went to a government run hospital. She was also able got free prescriptions.
a)
equity
b)
security
c)
freedom
d)
efficiency
10.
My restaurant has been busy lately. I had to hire more waiters & open a patio on the roof with more seats.
a)
growth
b)
security
c)
efficiency
d)
stability
11.
I love the supermarket in my area. Things there cost very cheap. I get to keep my budget and save money to pay my rent.
a)
security
b)
freedom
c)
growth
d)
stability
12.
I been at my job for 10 years and I love it. We recently hired a new guy. He's always late and messy, but our pay is equal.
a)
security
b)
growth
c)
equity
d)
efficiency
13.
Consider the market for cars in Hong Kong. If gas prices go up, then the demand for cars will
a)
increase
b)
decrease
14.
A decrease in demand for iPhones in Hong Kong could be caused by a(n)
a)
increase in price for Samsung Galaxy
b)
the price for iPhones are expected to increase next week
c)
increase in population in Hong Kong
d)
the price of iPhone apps increased
15.
New studies show that avocados are healthy. The demand for avocados increase due to a change in
a)
tastes and preferences
b)
market size
c)
price of a substitute good
d)
price of a complementary good
16.
If the price of Frozen Yogurt increased then the demand for ice cream will
a)
increase
b)
decrease
17.
The Hong Kong government reduced income tax by 10%. The demand for shoes will
a)
increase
b)
decrease
18.
A scandal in which 1 million fake Chanel bags have been found. The increase on Louis Vuitton bags are because
a)
income
b)
price of a complement
c)
tastes and preferences
d)
price of a substitute
19.
The law of demand states that as the price increases the
a)
quantity demanded decreases
b)
quantity demanded increases
c)
demand increases
d)
demand decreases
20.
The price of gas is expected to increase next week. Therefore, today the demand for gas will
a)
increase
b)
decrease
21.
Since Donald Trump has been elected, the demand for U.S. tourist visas has decreased because of
a)
expectations of future prices
b)
income
c)
tastes and preferences
d)
market size
22.
What happened to a supply curve when supply goes down?
a)
moves left
b)
moves right
c)
moves up
d)
moves down
23.
Which of the following could cause the price for automobiles to decrease?
a)
The local factory gives a big raise to its employees.
b)
A brand new automobile dealership opens in town.
c)
The price of gasoline falls.
d)
None of the choices.
24.
This part of the market determines SUPPLY
a)
buyers
b)
consumers
c)
sellers
25.
If the price of a good or service goes up, what happens to the supply for that good or service?
a)
supply goes down
b)
supply stays the same
c)
none of the choices
d)
supply goes up
26.
Which of the following is the best example of the law of supply?
a)
sandwich shop increase number of supply daily when price increase
b)
a milling co. builds new factory to process flour for export
c)
a catering company buys a new dishwasher to make work easier
d)
Producer increases # of acres of wheat grown for milling co.
27.
If a huge oil reservoir was found, it would cause the ____ curve for oil and gas to shift ____
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
28.
If a huge oil reservoir was found, it would cause the ____ curve for oil and gas to shift ____
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
29.
More sellers enter the "Pizza" market. What happens to the total number of pizzas supplied?
a)
they increase (curve shifts right)
b)
they decrease (curve shifts left)
c)
they stay the same (the curve stays same)
30.
What happened to a supply curve when supply goes down?
a)
moves right
b)
moves left
c)
moves up
d)
moves down
31.
What's the perfect price for supplier to sell products &make sure it doesn't stay in store long
a)
surplus
b)
subsidy
c)
equilibrium price
d)
shortage
32.
Oligopoly is a market structure with one very large firm.
a)
True
b)
False
33.
A government monopoly is based on ownership or control of a manufacturing process
a)
True
b)
False
34.
The monopolist (owner of a monopoly) does not use an equilibrium price to determine prices
a)
True
b)
False
35.
A government agency usually approves prices for water and electric facilities
a)
True
b)
False
36.
"truth in advertising" laws prevent market failure based on inadequate information
a)
True
b)
False
37.
In perfect competition, the product is differentiated
a)
True
b)
False
38.
In monopolistic competition there are many buyers and sellers
a)
True
b)
False
39.
Non-price competition is the use of ads, giveaways, or promotions to win customers
a)
True
b)
False
40.
Market failure can occur when resources do not move freely
a)
True
b)
False
41.
Economists describe unintended consequences as externalities.
a)
True
b)
False
42.
Which of the following does not apply to perfect competition?
a)
large number of buyers and sellers
b)
identical products
c)
sellers acting together to set price
d)
well informed buyers and sellers
43.
Which type of monopoly is based on ownership of a method or process?
a)
natural
b)
technological
c)
government
d)
geographic
44.
A decrease in competition within a market can result in
a)
increased output
b)
efficient resource allocation
c)
increased economic and political power
d)
lower prices
45.
Which is NOT a reason the government is involved in our economy?
a)
regulate for the public interest
b)
promote externalities
c)
prevent monopolies
d)
encourage competition
46.
When one car company lowers its prices, the others are likely to
a)
maintain their price
b)
raise their price
c)
go out of business
d)
lower their price
47.
Mergers and acquisitions result in
a)
less competition
b)
smaller companies
c)
more competition
d)
less money
48.
The government indirectly improves the quality of info, and prevents market failure through
a)
support for the Internet
b)
creating the SEC
c)
requiring info on students
d)
running the Fed
49.
Limited Liability is one characteristic of a corporation
a)
True
b)
False
50.
It is easy to gain obtain a charter and become a corporation
a)
True
b)
False
51.
A disadvantage of a general partnership is responsible for the actions of each partner
a)
True
b)
False
52.
Forming partnerships makes it easier to improve size and gain capital
a)
True
b)
False
53.
If Nike and Adidas merge, it would be a _____________ merger
a)
insane
b)
vertical
c)
horizontal
d)
ladder
54.
An oil driller, oil refinery, and gas company merge.... this is a ________________ merger
a)
monopolistic
b)
horizontal
c)
inappropriate
d)
vertical
55.
What type of merger involves four or more businesses and diverse products?
a)
diagonal
b)
horizontal
c)
vertical
d)
conglomerate
56.
Public utilities are an example of a _______________ monopoly.
a)
technological
b)
natural
c)
government
d)
geographic
57.
A copyright or patent is an example of a _______________ monopoly.
a)
Technological
b)
Natural
c)
Geographic
d)
Government
58.
The post office or fire department is an example of a _______________ monopoly.
a)
Technological
b)
Natural
c)
Government
d)
Geographic
59.
One gas station off an exit is an example of a _______________ monopoly.
a)
Technological
b)
Natural
c)
Geographic
d)
Government
60.
In which market structure is there the LEAST competition?
a)
Perfect Competition
b)
Monopoly
c)
Monopolistic Competition
d)
Oligopoly
61.
In which market structure is there the MOST competition?
a)
Perfect Competition
b)
Monopolistic Competition
c)
Monopoly
d)
Oligopoly
62.
In which market structures are there NON-PRICE competition?
a)
Monopolistic Competition and Perfect Competition
b)
Perfect Competition and Monopoly
c)
Oligopoly and Monopoly
d)
Oligopoly and Monopolistic Competition
63.
System used to collect and organize economic statistics.
a)
price level
b)
national income accounting
c)
gross domestic products (GDP)
d)
depreciation
64.
Dollar value of all final goods and services produced within a country in a given year.
a)
intermediate goods
b)
price level
c)
GDP
65.
Consumer goods that last a long time.
a)
intermediate goods
b)
durable goods
c)
depreciation
d)
GDP
66.
Loss of value from normal wear and tear
a)
price level
b)
depreciation
c)
intermediate goods
d)
GDP
67.
Average of all prices in the economy.
a)
price level
b)
GDP
c)
national income accounting
d)
depreciation
68.
Products used in the production of final goods.
a)
intermediate goods
b)
durable goods
c)
depreciation
d)
gross domestic product
69.
How do economists calculate GDP using the expenditure approach?
a)
They add up all the amount spent on final goods & services
b)
They add up all the incomes received
c)
Subtract the value of all goods & services from all incomes
d)
Subtract all incomes from the value of all goods & services
70.
Why is real GDP more accurate than nominal GDP?
a)
It is adjusted for depreciation
b)
It is adjusted for price changes
c)
It includes unpaid and paid work
d)
It includes unrecorded business
71.
What is one limitation of GDP?
a)
Does not include intermediate goods
b)
Does not include non-durable goods
c)
Does not show how the economy is doing over time
d)
Does not measure health and happiness
72.
What is one thing that causes aggregate demand to go up?
a)
Aggregate supply goes up
b)
Price levels go down
c)
Price levels stay the same
d)
Price levels increase
73.
Period of economic expansion followed by a period of economic contraction
a)
business cycle
b)
stagflation
c)
trough
d)
GDP
74.
Period of economic growth
a)
peak
b)
expansion
c)
recession
d)
stagflation
75.
Lowest point in a business cycle
a)
stagflation
b)
recession
c)
expansion
d)
trough
76.
Long period of economic contraction
a)
trough
b)
stagflation
c)
expansion
d)
GDP
77.
Period of declining real GDP and rising prices
a)
national income accounting
b)
stagflation
c)
trough
d)
recession
78.
What are two things that usually happen when interest rates go up?
a)
Both consumers & businesses spend more money
b)
Consumers spend more money, but businesses spend less money
c)
Consumers spend less money, but businesses spend more money
d)
Both consumers and businesses spend less money
79.
Which of the following are leading indicators?
a)
interest rates and stock prices
b)
tax rates and stock prices
c)
tax rates and unemployment rates
d)
stock prices and external stocks
80.
What are the leading indicators used to predict?
a)
business cycles
b)
stock prices
c)
interest rates
d)
oil prices
81.
What was one result of the OPEC oil embargo during the 1970s?
a)
expansion
b)
the Great Depression4
c)
stagflation
d)
lower gas prices
82.
Highest point in a business cycle
a)
expansion
b)
price level
c)
peak
d)
depreciation
83.
What type of externality is air pollution from factories?
a)
Negative in Production
b)
Positive in Production
c)
Negative in Consumption
d)
Positive in Consumption
84.
What type of externality is particulates from vehicle pollution?
a)
Negative in Production
b)
Positive in Production
c)
Positive in Consumption
d)
Negative in Consumption
85.
What type of externality comes from immunization programs?
a)
Negative in Production
b)
Positive in Production
c)
Negative in Consumption
d)
Positive in Consumption
86.
What type of externality is reduced journey times for drivers from a new road network?
a)
Negative in Production
b)
Positive in Production
c)
Negative in Consumption
d)
Positive in Consumption
87.
What type of externality is industrial waste?
a)
Negative in Production
b)
Positive in Production
c)
Negative in Consumption
d)
Positive in Consumption
88.
What type of externality is the impact of addiction on families?
a)
Negative in Production
b)
Positive in Production
c)
Negative in Consumption
d)
Positive in Consumption
89.
What type of externality can occur because of education?
a)
Negative in Production
b)
Positive in Production
c)
Negative in Consumption
d)
Positive in Consumption
90.
What type of externality can occur when agricultural production helps local beekeepers?
a)
Negative in Production
b)
Positive in Production
c)
Negative in Consumption
d)
Positive in Consumption
91.
Which of these fiscal policy actions would most likely result in a decrase in consumer spending
a)
Increasing Income Taxes
b)
Decreasing Income Taxes
c)
Increasing Government Spending
d)
Decreasing the reserve requirement
92.
Which of these actions would reduce inflation by slowing the economy down?
a)
Increasing Spending
b)
Decreasing Spending
c)
Increasing Loans
d)
Decreasing Taxes
93.
Which of the following would help end a recession by stimulating the economy?
a)
Increasing Taxes
b)
Decreasing loans to consumers
c)
Decreasing Spending
d)
Increasing Spending
94.
Which of these actions would result in consumers spending more?
a)
Increasing Income Tax
b)
Decreasing Income Tax
c)
Decreasing Government Spending
d)
Decreasing the Reserve Requirement
95.
what year was the Federal Reserve Created?
a)
1913
b)
1391
c)
1931
d)
1911
96.
How many federal reserve banks are there?
a)
24
b)
21
c)
14
d)
12
97.
The Federal Reserve is also referred to as the "bankers bank"
a)
True
b)
False
98.
Why is this important?
a)
Bill Clinton created it
b)
provides financial safety net
c)
Trump likes it
d)
Obama hated it
99.
Which of these does the federal reserve NOT do?
a)
promote maximum employment
b)
handle financial affairs in Canada
c)
stabilize prices
d)
moderate long term interest rates
100.
What does the FOMC ( Federal Open Market committee) do?
a)
Schedule our classes
b)
Give out candy
c)
Control gas prices
d)
Increase or decrease money
101.
A debit card...
a)
Charges you interest
b)
Must be paid off within 30 days
c)
Takes money from your checking account
102.
Purchases on my credit card...
a)
Should be paid off monthly
b)
Will accrue interest if not paid off in 30 days
c)
Should be used sparingly
d)
All of the options
103.
A mortgage or a car loan are examples of installment debt. True or False?
a)
True
b)
False
104.
Credit cards...
a)
allow for purchases to be paid for now without using cash
b)
usually have high interest rates
c)
can be used anywhere that card is taken
d)
all of the options
105.
Collateral is...
a)
your ability to pay the debt back.
b)
property used to secure a loan.
c)
your willingness to repay the debt.
d)
regular income plus money in savings and checking accounts.
106.
A savings account...
a)
is not considered liquid.
b)
pays a high interest rate.
c)
requires a small deposit.
d)
pays a variable interest rate.
107.
The FDIC insures your bank deposits up to
a)
$250,000
b)
$150,000
c)
$200,000
d)
$300,000
108.
If I file bankruptcy, it can stay on my credit report for
a)
5 years
b)
12 years
c)
7 years
d)
10 years
109.
A good credit score would be around 720 or higher. True or False?
a)
True
b)
False
110.
To establish good credit, I should do what?
a)
Pay my credit card off monthly
b)
Pay my bills on time
c)
Maintain a positive balance in my checking and savings acct.
d)
All of the options
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