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Economics Semester Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A car is an example of

a)

durable good

b)

nondurable good

c)

capital good

d)

service

2.

Opportunity cost refers to

a)

the dollar amount attached to a good or service

b)

the value of the next best alternative

c)

the cost of not expanding production

d)

the cost of labor when production is expanded or changed

3.

Economics is best defined as the study of how societies deal with

a)

the factors of production

b)

the problem of scarcity

c)

the paradox of wealth

d)

the division of labor

4.

The economic system of the United States is considered a

a)

free market capitalist economy

b)

command economy

c)

socialist economy

d)

traditional economy

5.

Which is a good synonym for the work barter in the term barter economy

a)

trade

b)

fiat

c)

specie

d)

monetary

6.

Consumers in a free enterprise economy ultimately determine _____ to produce.

a)

when

b)

how

c)

what

d)

where

7.

Consumers are powerful because

a)

they have more rights than corporations

b)

thye help decide a business's opportunity costs

c)

they drive decisions about what to produce

d)

their interests force producers to behave ethically

8.

What gives people and businesses the opportunity to make their own decisions

a)

profit motive

b)

economic freedom

c)

command economy

d)

free enterprise

9.

In what kind of economy does the government own all of the factors of production?

a)

communist

b)

market

c)

socialist

d)

traditional

10.

Which of the following is a basic characteristic of money?

a)

portability

b)

durability

c)

divisibility

d)

all of these

11.

What is the relationship between income and demand?

a)

a decrease in income increases demand

b)

an increase in price increases income

c)

a decrease in price decreases income

d)

an increase in income increases demand

12.

Societies are faced with which three basic questions about production of goods?

a)

what, how and why

b)

what, where and when

c)

what, how and for whom

d)

when, where, and for whom

13.

A can of soup is an example of

a)

durable good

b)

nondurable good

c)

capital good

d)

service

14.

Diminishing marginal utility results from lessened

a)

income

b)

satisfaction

c)

demand

d)

elasticity

15.

Which of the following lists economic systems in order from least to most flexible?

a)

command, socialism, free market

b)

free market, socialism, command

c)

socialism, command, free market

d)

free market, command, socialism

16.

You pick up a $1 bill. What are you holding?

a)

currency

b)

Federal Reserve note

c)

fiat money

d)

all of the above

17.

Which of the following is an advantage of sole proprietorship?

a)

There are almost no requirements to start up a sole proprietorship.

b)

The owner makes all the decisions

c)

The owner keeps all of the profits

d)

All of these are advantages of a sole proprietorship

18.

The dollar value of all final goods, services, and structures produced in a country in a year is known as

a)

Gross Domestic Product

b)

franchise

c)

profit motive

d)

Gross National Product

19.

Because of technological developments, the banking industry is steadily moving toward _____ banking.

a)

demand

b)

electronic

c)

creditworthy

d)

reserve

20.

​The government document that grants permission to establish a corporation is called a

a)

stock certificate

b)

charter

c)

partnership agreement

d)

limited liability agreement