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WorksheetsEcon Final Exam Review
Total questions: 45
Worksheet time: 23mins
Name
Class
Date
1.
The cost of the next best choice or alternative
a)
scarcity
b)
opportunity cost
c)
voluntary exchange
2.
Agreement to trade money or other goods for goods and services
a)
scarcity
b)
opportunity cost
c)
voluntary exchange
3.
Unlimited wants coupled with limited resources
a)
scarcity
b)
opportunity cost
c)
voluntary exchange
4.
People rely on others to provide goods and services
a)
Market
b)
Economic Interdependence
5.
A place where money is exchanged for goods and services
a)
Market
b)
Economy
6.
When resources are equal, producing goods more efficiently
a)
absolute advantage
b)
comparative advantage
7.
Ability to have lower opportunity cost with unequal resources
a)
absolute advantage
b)
comparative advantage
8.
No restrictions on imports or exports between countries
a)
trade
b)
free trade
c)
tariff
9.
Tax on imported goods aimed at supporting local businesses
a)
trade
b)
free trade
c)
tariff
10.
Voluntary exchange of goods and services
a)
trade
b)
free trade
c)
tariff
11.
Supply is greater than demand
a)
surplus
b)
shortage
12.
Demand is greater than supply
a)
surplus
b)
shortage
13.
Money budgeted for the government to spend
a)
revenue
b)
expenditure
14.
Money government takes in from taxes
a)
revenue
b)
expenditure
15.
Identify which of the following is not one of the questions we have to answer in Economics.
a)
what to produce
b)
how to produce
c)
who produces what
d)
for whom to produce
16.
(36)When Adam Smith states that an “invisible hand” guides our Economy and its resources to their most efficient use, what is the “invisible hand” referring to?
a)
competition
b)
government intervention
c)
supliers
d)
consumers
17.
(38) Describe the concept that a Market Economy thrives on.
a)
Government intervention allows businesses to compete
b)
Producers compete against each other for the consumer’s dollar
c)
Jobs are passed down from generations of ancestors before them
d)
A central authority makes all economic decisions
18.
(39) Resistance to new technology and ideas is a disadvantage of which economic system?
a)
traditional economy
b)
command economy
c)
market economy
d)
mixed economy
19.
(40)Identify the factor of production that people supply to businesses in exchange for wages
a)
land
b)
labor
c)
capital
d)
entrepreneur
20.
(42)Which of the following is not a capitol good?
a)
a baker's oven
b)
a carpenter's saw
c)
a landscaper's lawnmower
d)
a teacher's car
21.
(48)Which of the following about factors of production is true?
a)
Crude oil is considered land
b)
Production Equipment is considered labor
c)
Labor may only be physical
d)
Entrepreneurs provide all capital
22.
(50)Which of the following is not an advantage of a trade agreement?
a)
eliminated tariffs
b)
increased regulation
c)
increase in jobs
d)
increase in productivity
23.
(51)Identify the determining factor in comparative advantage, allowing companies to enter trade agreements
a)
specialization
b)
tariffs
c)
quotas
d)
opportunity cost
24.
(52)Which of the following is true about a production possibilities frontier?
a)
It holds limited information
b)
It has little value to an economist
c)
It can show the most efficient use of a nations resources
d)
It struggles to illustrate opportunity cost
25.
(55) Which type of Market is characterized by a large number of buyers and sellers?
a)
monopoly
b)
oligopoly
c)
pure competition
d)
monopolistic competition
26.
(56) A market where there are only a few sellers, such as the Auto industry, is what type of market?
a)
monoply
b)
oligopoly
c)
pure competition
d)
monopolistic competition
27.
(57) Stable, Predictable, and continuous are all adjectives that describe which economic system
a)
market economy
b)
command economy
c)
traditional economy
d)
mixed economy
28.
(58) The Restaurant industry is an example of which market type?
a)
monopoly
b)
oligopoly
c)
pure competition
d)
monopolistic competition
29.
(59) Why do countries place tariffs on imported goods?
a)
It lowers the cost of imported goods
b)
It motivates consumers to purchase local goods
c)
It increases the productivity of the overseas market
d)
It motivates consumers to purchase foreign goods
30.
(62) If a decrease in the price of laptops leads to an increase in sales of software, the two products are?
a)
substitutes
b)
compliments
c)
elastic
d)
inelastic
31.
(66) When buying a car, what is the total amount of money you borrow?
a)
down payment
b)
principal
c)
interest
d)
variable
32.
(67) When you borrow money from a lending institution you have to pay back a certain percentage on top of the principal amount. What is this percentage known as?
a)
down payment
b)
principal
c)
interest
d)
variable
33.
(69) What are you doing when you diversify your investments?
a)
Investing all your money in the same business
b)
Investing in many different markets
c)
Investing in small chunks here and there
d)
Pooling your money with different people to invest in a business
34.
(71) Items such as cars, boats, and TV’s _________ or lose value over time.
a)
appreciate
b)
depreciate
c)
appropriate
d)
evaluate
35.
(75) Which of the following is the best scenario to use a credit card?
a)
emergency
b)
When you already can afford the item
c)
When you need cash from the ATM
d)
When you forget to bring cash to the store
36.
(78) Which of the following is not one of the phases of the business cycle?
a)
progression
b)
expansion
c)
peak
d)
trough
37.
(81) Identify which of the following is not used to measure a nation’s economic performance.
a)
GDP
b)
inflation
c)
consumer price index
d)
unemployment
38.
(83) The unemployment rate has risen to 9% and GDP has declined for two quarters in a row. What phase of the business cycle does this describe?
a)
expansion
b)
peak
c)
recession
d)
trough
39.
(84) The unemployment rate has declined over the last 4 years to a rate of 5%. GDP has increased in every quarter of the last 4 years as well. The Economy is at a point where it cannot possibly improve anymore. Financial experts expect GDP to decline next quarter. What phase of the business cycle does this describe?
a)
expansion
b)
peak
c)
recession
d)
trough
40.
(88) Identify which of the following is not a role of the government in a market economy
a)
protector
b)
regulator
c)
consumer
d)
leader
41.
(91)Identify which state of employment a nation is in if the unemployment rate is less than 4.5%
a)
full employment
b)
marginal employment
c)
full unemployment
d)
frictional unemployment
42.
(95) The Federal Reserve System, or Fed, is an example of which type of bank?
a)
state bank
b)
central bank
c)
commercial bank
d)
credit union
43.
(96) If a country produces 100 tanks, it cannot produce any buses. However if it wants to produce 10 buses it can only produce 50 tanks. What is the opportunity cost of producing 10 buses?
a)
100 tanks
b)
50 tanks
c)
10 buses
d)
0 buses
44.
(98) Which of the following is not a function of money?
a)
It is a medium of exchange
b)
It has a standard of value
c)
It is a store of value
d)
It’s value is unlimited
45.
(99) Explain why the United States Dollar has value.
a)
It is backed up by a physical commodity
b)
Our government has declared it to be legal tender
c)
The paper it is printed on has value
d)
Markets give it value
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