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WorksheetsEconomics Review for Winter EOC
Total questions: 85
Worksheet time: 1hrs 2mins
Name
Class
Date
1.
A person or organization that uses a product or service is a(n):
a)
consumer
b)
economist
c)
loan shark
d)
debtor
2.
A system by which goods and services are produced and distributed is the:
a)
economy
b)
consumer
c)
interest
d)
debt
3.
House: Goods or Service?
a)
Goods
b)
Service
4.
UPS Delivery: Goods or Service?
a)
Goods
b)
Service
5.
If the government makes me produce 70 T-Shirts, what economic system is this?
a)
Mixed
b)
Traditional
c)
Command
d)
Market
6.
Which type of economy lets the private businesses make all of the decisions?
a)
Market
b)
Mixed
c)
Command
d)
Traditional
7.
If a country is Communist, what type of economy will they have?
a)
None
b)
Command
c)
Market
d)
Traditional
8.
The total value of goods and services produced within the borders of a country during a specific time period, usually one year.
a)
GDP
b)
GNI
c)
GDP per capita
d)
HDI
9.
What is money that you can earn in your savings account or that you have to pay back on a loan?
a)
lucky money
b)
a loan
c)
interest
d)
tips
10.
The thing that you give up (the next best alternative) when you make a decision is known as
a)
Opportunity Cost
b)
Scarcity
c)
Incentive
d)
Choice
11.
The reason why you cant have everything you want is because of
a)
Opportunity Cost
b)
Scarcity
c)
Incentive
d)
Choice
12.
A general increase in prices
a)
price
b)
inflation
c)
scarcity
d)
demand
13.
How much people want something
a)
supply
b)
demand
14.
How much of something is available
a)
supply
b)
demand
15.
an economic rule stating that the quantity demanded and price move in opposite directions
a)
supply
b)
demand
c)
elastic demand
d)
law of demand
16.
a product that can be used in place of another product
a)
all of them
b)
inelasticity
c)
elasticity
d)
substitute
17.
a listing that shows the quantities demanded of a product at various prices
a)
law of demand
b)
demand schedule
c)
demand
d)
demand curve
18.
the principle that our additional satisfaction or our marginal utility tends to go down as more and more units are consumed
a)
voluntary exchange
b)
specializattion
c)
natural resources
d)
diminishing marginal utility
19.
it is the money a business receives for its products or services over and above its costs
a)
sale
b)
purchase
c)
profit
d)
loss
20.
it is the government payment to an individual, business or other group for certain action
a)
subsidy
b)
capital
c)
labor
d)
goods
21.
the amount of goods and services produced from a given level of inputs
a)
productivity
b)
division of labor
c)
disposable income
d)
none of them
22.
a transaction in which a buyer and seller work out their own terms of exchange
a)
exchange
b)
production
c)
voluntary exchange
d)
specialization
23.
An economy that is a blend between a command economy and a market economy is said to be?
a)
mixed
b)
traditional
c)
market
d)
command
24.
What are the 3 questions every economic system must answer for their country?
a)
What to produce?
How will the government produce it. Who will the leader produce it for.
How will the government produce it. Who will the leader produce it for.
b)
What to produce? How to produce it? For whom to produce it for?
c)
What to produce? How to produce it? When will the government produce it?
d)
When the dictator decides what to produce. How to produce it and for where it will be sold.
25.
What is being represented by the "green flow lines"
a)
Flow of Money
b)
Flow of Goods and Services
c)
Taxes
d)
law
26.
What is being represented by the "red flow line"
a)
The flow of money
b)
The flow of goods and services
c)
Taxes
d)
Productive resources
27.
In the products market,
a)
firms buy goods and services from households
b)
firms sell goods and services to households
c)
firms sell resources to households
d)
firms buy resources from households
28.
The North American Free Trade Agreement (NAFTA) is an economic agreement between which 3 countries?
a)
United States, Russia, China
b)
Canada, United States, Mexico
c)
Mexico, El Salvador, Spain
29.
Why do some companies choose to contract out business to foreign companies (i.e. outsourcing)?
a)
lower production costs
b)
support new technologies
c)
to create labor unions
30.
A person who comes up with a product or service, and finds the money and time to produce this new product.
a)
Entrepreneur
b)
Incentive
c)
Specialization
d)
Barter
31.
When it costs more to make a good than what you sell the good for.
a)
Loss
b)
Profit
c)
Tax
d)
Service
32.
Amount of money originally borrowed
a)
Mortgage
b)
Principal
c)
Annual percentage rate (APR)
d)
Finance company
33.
Cost of credit expressed as a yearly percentage
a)
Mortgage
b)
Principal
c)
APR
d)
Finance company
34.
What does CD stand for when talking about investments?
a)
Calculated Dividend
b)
Certificate of Deposit
c)
Central Dollar
d)
Current Deposit
35.
A mutual fund allows investments to be ___________.
a)
Secured
b)
Guaranteed
c)
Diversified
d)
Minimal
36.
Why budget?
a)
prevent debt
b)
plan for future
c)
save money
d)
all of these
37.
What if I have bad credit?
a)
High interest rates on loans
b)
You can easily be approved for a loan
c)
You have a high credit score
d)
You may have to live with Mr. Trump.
38.
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
39.
Credit union and commercial bank deposits of up to $250,000 are insured by what government backed program?
a)
FED
b)
NCU
c)
FDIC
d)
NAACP
40.
If the price of butter increases, then we would expect that the demand for margarine would fall.
a)
True
b)
False
41.
On the market demand and supply graph, the vertical axis shows __________________.
a)
demand.
b)
equilibrium.
c)
prices.
d)
quantity.
42.
On the demand and supply graph, the horizontal axis shows ________________.
a)
demand.
b)
equilibrium.
c)
prices.
d)
quantity.
43.
On the market demand and supply graph, the point equilibrium always happens
a)
at the highest point on the demand curve.
b)
where the demand and supply curves intersect.
c)
at the lowest point of the supply curve.
d)
at the center point of the graph, irrespective of the curves.
44.
A surplus happens when
a)
prices are too low relative to consumer demand.
b)
prices are too high relative to consumer demand.
c)
prices are too low relative to producer demand
d)
prices are too high relative to producer demand.
45.
Movement along the Demand curve to the right is called
a)
decrease in demand
b)
decrease in quantity demanded
c)
increase in demand
d)
increase in quantity demanded
46.
As the price of a good rises in a market, it acts as a signal:
a)
consumers that they should buy a greater quantity of the good.
b)
to producers that they should supply a greater quantity of the good.
c)
to consumer that they should increase their demand for the good.
d)
to producers that they should increase their supply of the good.
47.
Organizers of many high-interest sporting events such as the Super Bowl and the World Series usually set ticket prices lower than the equilibrium price, citing fairness to the public as their reason. What names do economists give to the resulting set price and disequilibrium situation?
a)
price ceiling; surplus
b)
price ceiling; shortage
c)
price floor; shortage
d)
price floor; surplus
48.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
49.
What Price would make an effective Price to set a Price Ceiling?
a)
340
b)
320
c)
280
50.
What is not an example of a substitute?
a)
Train freight and truck freight
b)
Peanut butter and jelly
c)
Hershey's and Nestle chocolate
d)
Microsoft Word and Google Docs
51.
Several Companies sell similar products is called what type of competition?
a)
Perfect Competition
b)
Monopolistic Competition
c)
Monopoly
d)
Oligopoly
52.
What is the biggest disadvantage of a Sole proprietorship and a partnership?
a)
Start Up Costs
b)
Taxes
c)
Unlimited Liability
d)
Receives all profits
53.
If a study came out proving that chocolate milk was a healthy post-workout beverage, what would likely happen?
a)
Demand increases for Choc. Milk
b)
Demand Decreases for Choc. Milk
c)
Supply Increases for Choc. Milk
d)
Supply Decreases for Choc. Milk
54.
What type of market structure has a few firms, and a lot of control over price?
a)
Perfect Competition
b)
Oligopoly
c)
Monopolistic Competition
d)
Monopoly
55.
Based on the graph shown, what has happened?
a)
Supply Increase
b)
Supply Decrease
c)
Demand Increase
d)
Demand Decrease
56.
What is Macroeconomics the study of?
a)
study of total effects on the national economy and the global economy of the choices that individuals, businesses, and gov’ts make
b)
study of the choices individuals/businesses make and the way these choices interact and are influenced by governments
c)
study of marginal benefit and marginal cost
d)
study of scarcity
57.
Which of the following is the correct equation for GDP?
a)
C+I+T+(X+M)
b)
C+I+G+(X+M)
c)
C+I+G+(X-M)
d)
C+I+T+(X+M)
58.
When Americans buy electronics from China, what part of the GDP equation does this count as?
a)
Consumption
b)
Investments
c)
Imports
d)
Exports
59.
Money must be able to withstand the wear and tear of many people using it. This describes ____________________.
a)
Divisibility
b)
Durability
c)
Limited Supply
d)
Acceptability
60.
What term describes the Federal Reserve’s control of the money supply by adjusting interest rates?
a)
Fiscal Policy
b)
Federal Control
c)
Monetary Policy
d)
banking
61.
Who controls monetary policy?
a)
The President
b)
Federal Government
c)
Federal Reserve
d)
Mrs. Wesley
62.
Peggy, a recent college graduate, decides to look for a job instead of going to graduate school. If she is unable to find a job that suits her interests right away, what type of unemployment is she MOST likely experiencing?
a)
structural
b)
seasonal
c)
frictional
d)
cyclical
63.
In a typical business cycle, what stage immediately follows a peak?
a)
contraction
b)
expansion
c)
trough
d)
growth
64.
When the economy is working properly, what is the unemployment rate?
a)
0 to 3 percent
b)
4 to 6 percent
c)
8 to 10 percent
d)
10 to 12 percent
65.
An example of structural unemployment is the
a)
decision to get rid of employees with redundant skills
b)
shutdown of a manufacturing plant due to a world recession
c)
decision by an employee to take a holiday before looking for a new job
d)
decision by an employee to leave Australia to seek work overseas
66.
The Federal Reserve wants to reduce the nation’s money supply. This could be accomplished by doing all of the following EXCEPT
a)
decreasing the discount rate
b)
increasing the reserve requirement
c)
selling securities on the open market
d)
making banks hold a reserve for all types of deposits
67.
If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is
a)
decreasing taxes
b)
decreasing spending
c)
decreasing the money supply
d)
decreasing the reserve requirement
68.
GDP expressed in constant, or unchanging, (adjusted for inflation) prices is called
a)
real GDP.
b)
price level.
c)
nominal GDP.
d)
GNP
69.
Coming into effect in 1994, NAFTA encouraged free trade between the United States and which two other countries?
a)
canda and cuba
b)
japan and china
c)
Canada and mexico
d)
panama and brazil
70.
An exchange rate is used to
a)
promote the argument supporting free trade.
b)
promote the use of subsidies on foreign goods.
c)
determine the price of one country's imports in terms of another country's imports.
d)
determine the price of one country's currency in terms of another country's currency.
71.
What are tariffs?
a)
political boundaries between nations
b)
military blockades of specific countries
c)
disputes between state governments over boundaries
d)
taxes on the import or export of goods from a country
72.
When one country can produce a product more cheaply than another country can, this is called
a)
a tariff.
b)
free trade.
c)
comparative advantage.
d)
absolute advantage
73.
Trade Policies:
A minimum acceptable benchmark.
A minimum acceptable benchmark.
a)
Tariff
b)
Quotas
c)
Product Standards
d)
Subsidies
74.
Allows each member of society to make choices about how to use their resources
a)
Security
b)
efficiency
c)
Freedom
d)
Satbiility
75.
Promotes a just and fair system
a)
freedom
b)
equity
c)
security
d)
growth
76.
Promotes wise decision making when using resources
a)
stability
b)
freedom
freedom
freedom
c)
efficiency
d)
security
77.
Help to protect people from unexpected events
a)
stability
b)
growth
c)
equity
d)
security
78.
Redcues extreme ups and downs in our economy and helps to keep prices from changing too quickly
a)
security
b)
growth
c)
full employment
d)
stability
79.
A point above the PPF curve represents
a)
efficiency
b)
inefficiency
c)
Unemployment
d)
Unattainable
80.
A headline reads: "Consumers demand new cell phones with greater functionality." What basic economic question is being addressed in this headline?
a)
for whom to produce
b)
how to produce
c)
what to produce
d)
when to produce
81.
In Georgia, the Public Service Commission regulates the rates charged to customers by GA Power to ensure:
a)
GA Power gets enough money to make a profit.
b)
GA Power does not profit from the sale of electricity in Georgia.
c)
consumers are protected from sharp price increases by a monopoly.
d)
consumers are protected from power plant pollution.
82.
When a country’s businesses invest heavily in new capital goods and new technology, which of the following is most likely to occur?
a)
supply and demand.
b)
opportunity costs.
c)
economic growth.
d)
economic freedom.
83.
The payments for land, labor, capital, and entrepreneurial ability respectively are
a)
rent, profit, wages, and interest
b)
profits, wages, interest, and rent
c)
rent, wages, interest, and profit
d)
wages, rent, profit, and interest
84.
Interdependence and price leadership are characteristics of firms in what kind of market structure?
a)
monopoly
b)
oligopoly
c)
monopolistic competition
d)
perfect competition
85.
Sharon decided to open a dry-cleaning business. She borrowed some money from her sister and took a loan from a bank. She hired one helper. What is one disadvantage of Sharon’s business?
a)
no separation of ownership and control
b)
ease of organizing the firm
c)
unlimited liability
d)
double taxation
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