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WorksheetsECON Final Review
Total questions: 158
Worksheet time: 5hrs 16mins
Name
Class
Date
1.
Which product is likely to have the most elastic supply curve?
a)
ice cream cones
b)
automobiles
c)
ships
d)
dishwashing machines
2.
The supply curve is?
a)
downward sloping
b)
level
c)
upward sloping
d)
irregular
3.
Measure of the way in which quantity supplied responds to a change in price
a)
supply curve
b)
supply elasticity
c)
supply
d)
subsidy
4.
The Law of Supply states that?
a)
The quantity supplied varies inversely with its price.
b)
The quantity supplied varies irregularly with its price.
c)
The quantity demanded varies inversely with its price.
d)
The quantity supplied varies directly with its price.
5.
A graph that shows the quantities supplied at each and every possible price in the market.
a)
supply curve
b)
supply schedule
c)
market supply curve
d)
Law of Supply
6.
Amount of a product offered for sale at all possible prices in a market at a given point in time.
a)
Supply
b)
Law of Supply
c)
Supply Schedule
d)
Market Supply Cuve
7.
A table showing the quantities produced or offered for sale at each and every possible price in the market at a given point in time.
a)
supply schedule
b)
demand schedule
c)
supply curve
d)
market supply curve
8.
Responsiveness of quantity supplied to a change in price.
a)
supply elasticity
b)
supply inelasticity
c)
supply curve
d)
supply schedule
9.
A graph that shows the quantities supplied at each and every possible price in the market.
a)
supply curve
b)
supply schedule
c)
market supply curve
d)
Law of Supply
10.
Changes in price affect the quantity of supply. This is known as:
a)
negative returns
b)
supply curve
c)
elasticity of supply
11.
The ability and willingness of sellers to produce and sell a product or service. This is known as:
a)
supply
b)
subsidy
c)
marginal cost
12.
The Law of Supply tells us
a)
as price decreases quantity supplied decreases
b)
as price increases quantity supplied decreases
c)
as price decreases quantity supplied increases
d)
as price increases quantity supplied stays the same
13.
A change along the supply or demand curve happens when
a)
there is a change in income
b)
a change in price
c)
a change in the cost of inputs
d)
a change in the number of consumers/ producers
14.
All of the following can cause an increase in supply EXCEPT?
a)
a decrease in the cost of inputs.
b)
fewer sellers in the market place.
c)
an increase in productivity.
d)
a change in taxes or subsidies.
15.
Which product is likely to have the most elastic supply curve?
a)
ice cream cones
b)
automobiles
c)
ships
d)
dishwashing machines
16.
Which way does a supply curve slope?
a)
down
b)
up
c)
both
d)
neither
17.
Grapes
a)
elastic supply
b)
inelastic supply
18.
Roller coasters
a)
elastic supply
b)
inelastic supply
19.
Satellites
a)
elastic supply
b)
inelastic supply
20.
Baseball hats
a)
elastic supply
b)
inelastic supply
21.
Sweatpants
a)
elastic supply
b)
inelastic supply
22.
Pedicures
a)
elastic supply
b)
inelastic supply
23.
What is the opportunity cost of increasing production of chicken nuggets from 17 to 41 orders?
a)
11 French Fries
b)
11 Chicken Nuggets
c)
14 French Fries
d)
14 Chicken Nuggets
24.
What is the benefit of decreasing the amount of chicken nugget orders from 48 to 29?
a)
19 Chicken Nuggets
b)
12 French Fries
c)
19 French Fries
d)
27 French Fries
25.
Iron, minerals, coal and plants are examples of which productive resource?
a)
land
b)
labor
c)
entrepreneurship
d)
capital
26.
Which of the following is an example of investment in human capital?
a)
education
b)
highway funding
c)
factory construction
d)
purchasing new shipping vehicles
27.
The opportunity cost of increasing production from 7 to 9 trucks is
a)
1 boat
b)
2 boats
c)
2 trucks
d)
3 boats
28.
Which of the following resources would economists classify as “capital”?
a)
Raw diamonds in a South African mine
b)
A hammer used in building a house
c)
Work done by a someone hired to repair engines
d)
Trees used to make paper
29.
A model economists use to show the maximum combination of goods and services that can be produced from a fixed amount of resources in a given period of time is called
a)
a decision making grid
b)
production possibilities curve
c)
thinking at the margin
d)
microeconomics model
microeconomics model
microeconomics model
30.
________ is the most basic economic problem.
a)
Scarcity
b)
Labor
c)
Greed
d)
Capital
31.
Opportunity Cost is best defined as
a)
The most desirable alternative you give up when making a decision
b)
The price you pay to purchase something
c)
The benefit you gain by making a decision
d)
The amount of debt you take on by making a decision
32.
The major types of resources used to make a good or service are called
a)
natural resources
b)
factors of reduction
c)
factors of production
d)
capital resources
33.
You give up one thing to have another in _________________.
a)
a trade off
b)
an opportunity
c)
production
d)
scarcity
34.
A business owner decides to sell board games instead of radios. The opportunity cost is ________.
a)
radios
b)
board games
c)
business owner
d)
choice
35.
You wait in line on Black Friday to get a 70" HDTV but they're sold out when you get in store, leaving you struggling to find one at that sale price. This is an example of
a)
scarcity
b)
shortage
c)
trade offs
d)
opportunity cost
36.
Using resources efficiently increases
a)
productivity
b)
capital
c)
income
d)
investment
37.
When the resources of a business change, production __________.
a)
goes up
b)
goes down
c)
stays the same
d)
may go up or down
38.
If a business use all its resources to build trucks, it will ________.
a)
not be able to build bikes
b)
be able to build fewer bikes than trucks
c)
be able to build the same number of bikes or trucks
d)
go out of business
39.
The United States has decided to spend more money on military goods and less on education. The opportunity cost for spending more money on military goods would be which of the following?
a)
leaving schools without funding
b)
the money used to fund the military
c)
money to spend on education
d)
better paid soldiers
40.
Max is studying for his spelling test. Unfortunately, his favorite TV program is on right now. If he studies for the test, he will miss watching the show. Max decides to study for his test instead of watching TV. What is the opportunity cost of his decision?
a)
studying for a test
b)
watching TV
c)
getting a higher grade on his test
d)
missing his favorite TV show
41.
The local government for a community must decide what to do with the sales tax money collected. They could use the money build a new skate park or they could buy more computers for the public library. The officials decide to build a skate park. What is the opportunity cost of their decision?
a)
less computers
b)
more computers
c)
more parks
d)
less money for parks
42.
This is a country's PPC, showing possibilities for wine and/or cotton production.
What does point B represent?
What does point B represent?
a)
Production at greater than the country's minimum potential
b)
Production is less than the country's minimum potential
c)
Production is greater than the country's maximum potential
d)
Production at the country's maximum potential
43.
This is a country's PPC, showing possibilities for wine and/or cotton production.
What does point Y represent on the PPC?
What does point Y represent on the PPC?
a)
Efficient production
b)
Exhaustion of resources/Unattainable production
c)
Saving resources
d)
Higher profits
44.
On your graph paper, compare the following two goods: corn (x) and cows (y). Mark the point 15 corn, 0 cows. Mark the point 0 corn and 5 cows. Draw a line between the two. Now plot the point 2 corn and 1 cow. Which statement is true?
a)
This point represents that maximum production and is using resources wisely.
b)
This point is inefficient and does not use resources wisely.
c)
This point is impossible, because there are not enough resources.
d)
This point shows that the production has decreased because less cows are being made
45.
On your graph paper, compare the following two goods: corn (x) and cows (y). Mark the point 15 corn, 0 cows. Mark the point 0 corn and 5 cows. Draw a line between the two. Now plot the point 12 corn and 6 cows. Which statement is true?
a)
This point represents that maximum production and is using resources wisely.
b)
This point is inefficient and does not use resources wisely.
c)
This point is impossible, because there are not enough resources.
d)
This point shows that the production has increased because more corn is being made
46.
The term, "labor" means:
a)
Work done to produce goods and services.
b)
The natural resources used to produce goods or services.
c)
Person who organizes the factors of production to produce goods/services; business owners.
d)
Goods not created for their own use, but to make other goods/services.
47.
Antonia has an Economic test tomorrow and knows that if she stays up and studies until 11 p.m. she has a good chance of making an A on the test. However she is really tired and knows that if she goes to bed at 10:00 p.m. she can easily make a B on the exam. What is Antonia's opportunity cost if she goes to bed at 11:00 p.m.?
a)
an A on the exam
b)
a B on the exam
c)
being awake for one hour
d)
one hour of sleep
48.
What type of Factor of Production is the following?
Tossing and kneading the dough for pizza
Tossing and kneading the dough for pizza
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
49.
What type of Factor of Production is the following?
A chef with culinary experience
A chef with culinary experience
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
50.
What type of Factor of Production is the following?
Money
Money
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
51.
What type of Factor of Production is the following?
Wheat
Wheat
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
52.
What type of Factor of Production is the following?
Putting sauce and pepperoni on a pizza
Putting sauce and pepperoni on a pizza
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
53.
What type of Factor of Production is the following?
Delivering pizza
Delivering pizza
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
54.
Economics is, at its core, about
a)
making choices
b)
studying business practices
c)
finding ways to make money
d)
following the stock market
55.
Scarcity can best be defined as
a)
A Shortage of a product
b)
Where demand is greater than supply
c)
Unlimited wants vs Limited resources
d)
Limited wants vs unlimited resources
56.
If a point lies on the production possibilities frontier this means the company is being efficient. If a point lies under the frontier, this tells the company what?
a)
They are being over efficient
b)
They are not efficient
c)
It is impossible to produce those goods
d)
They are saving money
57.
An Entrepreneur is ...
a)
A risk taker in search of profits who's initial investment must be returned
b)
A investor in search of profits who does something new with existing resources
c)
A investor in search of profits who's initial investment must be returned
d)
A risk taker in search of profits who does something new by combining various factors of production
58.
House: Goods or Service?
a)
Goods
b)
Service
c)
Neither
d)
Both
59.
The opportunity cost of increasing production from 4 to 7 boats is
a)
1 boat
b)
2 boats
c)
2 trucks
d)
3 trucks
60.
Doctor: Goods or Service?
a)
Goods
b)
Service
c)
Neither
d)
Both
61.
iPhone: Goods or Service?
a)
Goods
b)
Service
c)
Neither
d)
Both
62.
Dentist: Goods or Service?
a)
Goods
b)
Service
c)
Neither
d)
Both
63.
Librarian: Goods or Service?
a)
Goods
b)
Service
c)
Neither
d)
Both
64.
What type of Factor of Production is the following?
An oven in a pizza parlor
An oven in a pizza parlor
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
65.
What type of Factor of Production is the following?
Understanding how to use a cash register properly
Understanding how to use a cash register properly
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
66.
What type of Factor of Production is the following?
Entering orders and taking payments at a cash register as a cashier
Entering orders and taking payments at a cash register as a cashier
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
67.
What type of Factor of Production is the following?
Knowing proper food safety regulations in your pizza parlor
Knowing proper food safety regulations in your pizza parlor
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
68.
What type of Factor of Production is the following?
The plot of land you purchased to build your pizza parlor
The plot of land you purchased to build your pizza parlor
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
69.
What type of Factor of Production is the following?
Being able to drive a car to deliver pizza
Being able to drive a car to deliver pizza
a)
Land
b)
Labor
c)
Physical capital
d)
Human capital
70.
The main difference between scarcity and shortage has to do with...
a)
Desire
b)
Choosing
c)
Time
d)
Cost
71.
The main difference between trade-offs and opportunity cost has to do with...
a)
Desire
b)
Choosing
c)
Time
d)
Cost
72.
Listing that shows the quantity demanded at all possible prices at a given time
a)
Demand Schedule
b)
Demand Curve
c)
Supply Schedule
d)
Supply Curve
73.
The desire, ability, and willingness to buy a product
a)
Demand
b)
Supply
c)
Quantity Demanded
d)
Quantity Supplied
74.
Products that can be used in place of other products
a)
Elastic
b)
Inelastic
c)
Complements
d)
Substitutes
75.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
76.
Consider the market for SUVs. If the price of gasoline increases then the Demand for these vehicles will
a)
increase
b)
decrease
c)
not be affected
77.
The law of demand helps explain why people buy more when the price decreases.
a)
True
b)
False
78.
If suddenly, a large population increase occurred, what impact would it have on the housing market?
a)
prices would remain constant.
b)
There would be a surplus of homes on the market.
c)
It would shift the demand curve to the left.
d)
It would shift the demand curve to the right.
79.
A change in demand is shown
a)
along the demand curve
b)
with a new demand curve above or below the original demand curve
c)
without a demand graph
d)
with a totally vertical line
80.
A change in quantity demanded is shown
a)
at various points on the demand curve
b)
with a new demand curve drawn above or below the original demand curve
c)
with a vertical line
81.
Which factor causes the demand curve to shift in the following situation: Bobby graduated from college and got a good job, so he decided to buy a new 2018 Civic.
a)
income
b)
population
c)
consumer tastes & advertising
d)
prices of related goods
82.
Demand for Insulin
a)
Elastic
b)
Inelastic
83.
Demand for a European Vacation
a)
Elastic
b)
Inelastic
84.
Demand for Pork Chops
a)
Elastic
b)
Inelastic
85.
What two factors are necessary for there to be demand?
a)
desire and availability
b)
ability and desire
c)
availability and ability
d)
familiarity and desire
86.
What factor could have caused the demand to decrease?
a)
incomes increased
b)
expectation that prices will increase
c)
a decrease in the price of a substitute
d)
increase in market size
87.
The price of the IPhone 10 is expected to decrease in a month. Today the demand for the IPhone 10 will ____.
a)
increase
b)
decrease
c)
remain unchanged
88.
Peer pressure, seasons, negative reports, advertising, fashion trends; all of these might change a:
a)
Person's time to change shopping habits
b)
Person's relative importance
c)
Person's tastes
89.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
90.
When the price of Item A increases by $5, its demand decreases by 5%. When the price of Item B increases by $5, its demand decreases by 20%. Which good is more elastic?
a)
Item A
b)
Item B
c)
Neither because they both have inelastic demand
91.
Economists use _____ to measure how demand responds to changes in price.
a)
elasticity
b)
profit
c)
the law of demand
d)
supply curves
92.
This curve shows
a)
Elastic demand
b)
Inelastic demand
c)
Whatever this is it's not possible
d)
Both elastic and inelastic supply
93.
This curve shows
a)
Elastic demand
b)
Inelastic demand
c)
I don't think this curve is possible
d)
Both inelastic and elastic demand
94.
This curve shows
a)
Elastic demand
b)
Inelastic demand
c)
Whatever this is it's not possible
d)
Both elastic and inelastic supply
95.
It is possible for socialism to exist in a democracy.
a)
True
b)
False
96.
It is possible for communism to exist in a democracy.
a)
True
b)
False
97.
To change from government ownership to private ownership
a)
Nationalize
b)
Privatize
98.
To change from private ownership to government ownership
a)
Nationalize
b)
Privatize
99.
The United States is a pure market economy.
a)
True
b)
False
100.
If a person has an idea for an invention and gets it patented, his idea is protected by law.
a)
True
b)
False
101.
The government makes all economic decisions
a)
Traditional
b)
Command
c)
Market
102.
Everyone has a set role defined by custom.
a)
Traditional
b)
Command
c)
Market
103.
Primary focus is self-interest
a)
Traditional
b)
Command
c)
Market
104.
Socialism
a)
Traditional
b)
Command
c)
Market
105.
Main goal is survival
a)
Traditional
b)
Command
c)
Market
106.
The good of the group is more important than self interest.
a)
Traditional
b)
Command
c)
Market
107.
Adam Smith's "Invisible Hand"
a)
Traditional
b)
Command
c)
Market
108.
Capitalism
a)
Traditional
b)
Command
c)
Market
109.
What all societies had in earliest times
a)
Traditional
b)
Command
c)
Market
110.
Competition and Consumer Sovereignty
a)
Traditional
b)
Command
c)
Market
111.
Workers have little motive to improve output
a)
Traditional
b)
Command
c)
Market
112.
Workers have little motive to improve output
a)
Traditional
b)
Command
c)
Market
113.
Whose ideas led to Communism?
a)
Adam Smith
b)
Karl Marx
c)
Vladimir Putin
114.
Which of the following are markets involved in the circular flow model?
a)
Factor Market and Resource Market
b)
Labor Market and Product Market
c)
Factor Market and Product Market
d)
Resource Market and Labor Market
115.
Which two groups of people are represented in the circular flow model?
a)
Buyers and Households
b)
Producers and Firms
c)
Government and Private Individuals
d)
Households and Firms
116.
There is no need for government in the marketplace
a)
Laissez Faire
b)
Free Enterprise
c)
Communism
d)
Socialism
117.
The "Invisible Hand" theory applies to a traditional economy.
a)
True
b)
False
118.
The "Invisible Hand" theory applies to a command economy.
a)
True
b)
False
119.
There is no self-interest in a command economy.
a)
True
b)
False
120.
What is the most common type of economic system today?
a)
Traditional
b)
Command
c)
Market
d)
Mixed
121.
There are incentives in a command economy.
a)
True
b)
False
122.
Socialism and Communism are the same
a)
True
b)
False
123.
Socialism contains which of the following
a)
A classless society
b)
Government wouldn't place limits on what firms can do
c)
Some public ownership of certain industries
d)
Laissez faire policies
124.
In the United States, you may_______________.
a)
start your own business to meet a need
b)
decide what fees to charge for a service or product
c)
own and run any business as long as the laws are obeyed
d)
all of the answers are correct
125.
In the American Free Enterprise System, you have the right to buy or sell private property.
a)
True
b)
I do not believe that people should own property, or have the right to buy or sell it.
c)
False
126.
How consumers choose to spend their money causes business firms of all kinds to________
a)
have their goods made in foreign countries.
b)
produce only what the business wants to produce.
c)
produce certain goods and services and not others.
d)
produce as many kinds of goods and services as possible.
127.
Any form of wealth such as cash, stock, buildings, machinery, and land are all forms of capital.
a)
False
b)
True
128.
What are 2 ways people can earn money?
a)
cutting hair and selling goods
b)
saving money and buying groceries
c)
trading items and mowing lawns
129.
Which of the following allows anyone to open any business you want within some government laws?
a)
Right to Private Property
b)
Freedom to Choose
c)
Competition
d)
Consumer Sovereignty
130.
Rivalry between sellers is best known as
a)
Profit motive
b)
Competition
c)
Freedom to choose
d)
Consumer sovereignty
131.
The goal of every business is motivated by
a)
revenue
b)
profit
c)
competition
d)
freedom
132.
The fact that buyers determine whether any business succeeds or fails is called
a)
Profit motive
b)
Competition
c)
Consumer sovereignty
d)
Freedom to choose
133.
A key factor in the American Free Enterprise System is that individuals, families, or groups have the right to
a)
private property
b)
freedom to choose their own business
c)
compete
d)
profit motive
134.
Which group lists the key principles of the free enterprise system?
a)
private property, taxation, public interest, patriotism
b)
profit motive, legal equality, consumer protection, public interest
c)
profit motive, private property, eminent domain, voluntary exchange
d)
profit motive, legal equality, private property, voluntary exchange
135.
What is considered a negative effect of government regulation?
a)
It protects consumers but harms the environment.
b)
It is expensive for businesses to follow all of the rules.
c)
It allows businesses to sell unsafe products.
d)
It does not protect the well-being of the public.
136.
Private organization that tries to persuade public officials to act or vote according to group members interests'
a)
Interest Group
b)
Public Interest
c)
Public Policy
d)
Super PAC
137.
Requires companies to to provide full information about their products
a)
Public Disclosure Laws
b)
Public Policy
c)
Safety Net
d)
Consumer Sovereignty
138.
True or False: The government can't take your property without just compensation.
a)
True
b)
False
139.
This concept insures that everyone can compete in the marketplace by opening a business:
a)
profit incentive
b)
legal equality
c)
open opportunity
d)
open market
140.
The concept that people have the right and privilege to control their possessions as they wish.
a)
legal equality
b)
open opportunity
c)
private property
d)
profit incentive
141.
The concept of giving everyone the same legal rights, equal protections & due process of law.
a)
profit incentive
b)
legal equality
c)
open opportunity
d)
open market
142.
The concept that people may decide what and when they want to buy and sell goods & services
a)
voluntary exchange
b)
legal equality
c)
private property
d)
open opportunity
143.
The concept that people may decide what and when they want to buy and sell goods & services
a)
voluntary exchange
b)
legal equality
c)
private property
d)
open opportunity
144.
The rivalry between sellers to get more customers by lowering costs & better goods/services
a)
voluntary exchange
b)
competition
c)
incentives
d)
legal equality
145.
Who is this think who developed laissez-faire and is seen as the "father of capitalism"?
a)
Adam Smith
b)
Karl Marx
146.
All property is private property
a)
Capitalism
b)
Socialism
c)
Communism
147.
Both private property and public property exist
a)
Capitalism
b)
Socialism
c)
Communism
148.
All property is public property
a)
Capitalism
b)
Socialism
c)
Communism
149.
What do the households provide businesses?
a)
Taxes
b)
Wages
c)
Factors of production
d)
Goods and services
150.
In the product 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
151.
The government main source of income
a)
bonds
b)
factors of production
c)
transfer payments
d)
taxes
152.
Goods and services are sold in the ___ market
a)
Factor
b)
Product
153.
Resources are sold in the ___ Market
a)
Product
b)
Factor
154.
Individuals sell __________ to businesses and in return individuals earn an __________.
a)
profit, income
b)
resources, products
c)
FoP, income
d)
profit, individuals
155.
Businesses sell __________ to individuals and in return businesses earn a __________.
a)
products, profit
b)
businesses, individuals
c)
resources, profit
d)
income, profit
156.
Individuals buy __________ from businesses.
a)
products
b)
profit
c)
resources
d)
income
157.
Businesses buy __________ from individuals.
a)
profit
b)
products
c)
factors of production
d)
income
158.
__________ make products to sell to businesses and the government.
a)
Firms
b)
Individuals
c)
Income
d)
Profit
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