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Econ Final Review

Total questions: 60

Worksheet time: 37mins

Name
Class
Date
1.

Scarcity is:

a)

Physical objects

b)

The resources that are used to make all goods and services

c)

producers will not or cannot offer goods or services at current prices

d)

Limited quantities of resources to meet unlimited needs and wants

2.

A shortage is when:

a)

Physical objects are in vast supply

b)

The resources that are used to make all goods and services

c)

producers will not or cannot offer goods or services at current prices

d)

Limited quantities of resources to meet unlimited needs and wants

3.

An opportunity cost is:

a)

Everything you had given up for the choice you made

b)

The most desirable alternative given up as the result of a decision

c)

How much less or more we choose to do

d)

when you lose out on an opportunity that cost you a fortune

4.

In economics efficiency is:

a)

Using resources in such a way as to maximize the production of goods and services

b)

Using fewer resources than an economy is capable of using

c)

An increase in Productivity

d)

Every point on a Production Possibility Curve

5.

In economics cost is defined as:

a)

Every point on a PPC

b)

Every point inside a PPC

c)

The loss of money

d)

Opportunity Cost... What you have to give up to gain something else

6.

Which of the following statements best describes a Traditional Economy?

a)

A combination of different economic systems?

b)

An economic system that is based off traditions or customs; trade and bartering seen in many Native American tribes

c)

An economic system where the government controls all the factors of production

d)

An economic system where there is no government involvement; Adam Smith's idea for every economy

7.

Which of the following statements best describes a Free Market Economy?

a)

A combination of different economic systems

b)

An economic system that is based off traditions or customs; trade and bartering seen in many Native American tribes

c)

An economic system where the government controls all the factors of production

d)

An economic system where there is no government involvement; Adam Smith's idea for every societies' economy

8.

Which of the following statements best describes a Command Economy?

a)

A combination of different economic systems

b)

An economic system that is based off traditions or customs; trade and bartering seen in many Native American tribes

c)

An economic system where the government controls all the factors of production

d)

An economic system where there is no government involvement; Adam Smith's idea for every societies' economy

9.

Which of the following statements best describes a Mixed Economy?

a)

A combination of different economic systems; some government involvement while producers and consumers also have a say

b)

An economic system that is based off traditions or customs; trade and bartering seen in many Native American tribes

c)

An economic system where the government controls all the factors of production

d)

An economic system where there is no government involvement; Adam Smith's idea for every societies' economy

10.

Adam Smith is known as:

a)

The Father of Modern Economics

b)

The Father of Modern Astronomy

c)

The Father of the Command Economic System

d)

The Father of the Mixed Economic System

11.

Adam Smith supports the ideas of which type of economic system?

a)

Traditional

b)

Free Market

c)

Command

d)

Mixed

12.

A safety net is:

a)

a government program that protects people from unfavorable economic conditions

b)

A government program that signs people up for college

c)

a government program that gives you ideas of what you want to be when you're older

d)

a net that is in fact, safe.

13.

An example of a negative externality at a national park is:

a)

the cost of maintenance

b)

the cost of construction

c)

an environmental disaster

d)

Animals living on the land

14.

An example of a positive externality of a park being built is:

a)

adding value to property around the park

b)

Flowers blooming

c)

People visiting

d)

kids playing on the playground

15.

In economics competition causes

a)

People to fight

b)

growth and innovation

c)

prices to rise

d)

prices to lower

16.
The diagram represents a(n)
a)
increase in supply
b)
decrease in supply
c)
change in quantity supplied
d)
none of the above
17.

What happens to a supply curve when supply decreases?

a)

moves left

b)

moves rights

c)

moves up

d)

moves down

18.
What is this picture of?
a)
Demand Schedule
b)
Demand Curve
c)
Utility
19.
For the law of demand, as price rises, what happens to quantity demanded?
a)

it increase

b)

it decreases

c)

it stays the same

d)

it is not effected

20.
What determines the price and the quantity produced of most goods/?
a)
The consumers perception of necessity
b)
the interaction of supply and demand
c)
the availability of substitutes
d)
the quantity of the goods that are produced
21.
What are inferior goods?
a)
goods that are not well produced
b)
goods no one wants to buy
c)
goods for which the demand rises when income falls 
d)
goods for which the demand rises when income rises
22.
a government payment that supports a business
a)
mortgage 
b)
personal loan
c)
income tax
d)
subsidy
23.
In economics, "Tastes and preferences" refers to:
a)
Physical/personality attributes people specify in dating apps like Tinder
b)
Knowing which flavours people like to maximize the sale of food items
c)
Trends in consumer attitudes that influence what goods are produced
d)
Software settings you can manage in each app on your Macintosh computer
24.
"Complement goods" are...
a)
Things that make people feel better about themselves (ex: perfume, plastic surgery)
b)
Similar goods that cost less money
c)
A brand you can buy at any Sobeys store
d)
Products you need to use other products (ex: charger cable > cell phone)
25.

equilibrium price is

a)

when demand is equal to supply

b)

when there is no shortage and no surplus

c)

both of them

26.

surplus leads to

a)

increase in price

b)

decrease in price

27.

This is caused by a non-price factor, something other than a change in price.

a)

Shift in the curve

b)

Movement along the curve

c)

Grading on a curve.

28.

When the government artificially raises the price of a good or service (sets the price above equilibrium). This causes a surplus.

a)

Price ceiling

b)

Price control

c)

Price floor

29.

When the government sets the price of a good or service lower than the equilibrium price. Causes a shortage.

a)

Price floor

b)

Price ceiling

c)

Price fixing

30.

All of the following are causes of a shift in demand EXCEPT

a)

Change in consumer taste

b)

Change in price of related goods

c)

Change in income

d)

Change in price

31.

The quantity at which the quantity supplied and quantity demanded meet is called

a)

Quantity Demanded

b)

Price point

c)

Equilibrium

d)

Quantity Supplied

32.

The amount demand will change due to a change in price is called

a)

Law of Demand

b)

Aggregate Demand

c)

Elasticity of Demand

d)

Level of Demand

33.
An increase demand will shift the demand curve to the 
a)
left
b)
right
34.
An increase supply will shift the supply curve to the 
a)
left
b)
right
35.
The diagram represents a
a)
change in quantity demand
b)
decrease in demand
c)
increase in demand
d)
none of the above
36.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
37.
When there is a shortage the price will usually? 
a)
Rise
b)
Fall
c)
Stay the same
d)
Its at equilibrium
38.
What does this graph show?
a)
Shortage
b)
Equilibrium
c)
Surplus
d)
Supply Table
39.

Rent would be an example of a

a)

Implicit cost

b)

Expensive cost

c)

Variable cost

d)

Fixed cost

40.
What is it called when GDP is decreasing?
a)
expansion
b)
trough
c)
peak
d)
contraction
41.
What is a recession?
a)
increase in GDP
b)
decrease in GDP
c)
decrease in GDP for 6 months+
d)
GDP stays same for 1 year
42.

Which is not a part of the definition of money?

a)

Medium of exchange

b)

unit of account

c)

comes in the form of either cash and/or coin

d)

stores value

43.

Which of the following is an example of commodity money?

a)

Cash

b)

Cow

c)

Silver

d)

Debit Card

44.

Which of the following is an example of representative money?

a)

Bond

b)

Cash

c)

Debit Card

d)

Cow

45.

Which of the following does not adjust for inflation?

a)

Real GDP

b)

Unbelievable GDP

c)

GDP

d)

Nominal GDP

46.

Which of the following adjusts for inflation and is more accurate when comparing past years GDP?

a)

Nominal GDP

b)

True GDP

c)

Real GDP

d)

The realest of all GDPs

47.

When a student graduates college and is searching for a job this is an example of:

a)

Seasonal Unemployment

b)

Frictional Unemployment

c)

Cyclical Unemployment

d)

Structural Unemployment

48.

When a retail store lets go of employees after Christmas this is an example of

a)

Seasonal Unemployment

b)

Frictional Unemployment

c)

Cyclical Unemployment

d)

Structural Unemployment

49.

When Ford lays off employees because the company now has more efficient machines this is an example of:

a)

Seasonal Unemployment

b)

Frictional Unemployment

c)

Cyclical Unemployment

d)

Structural Unemployment

50.

JC Penny's is laying off workers because the economy is in a contraction period, this is an example of:

a)

Structural unemployment

b)

Cyclical Unemployment

c)

Seasonal Unemployment

d)

Frictional Unemployment

51.

When referring to full employment the unemployment rate is

a)

at 0%

b)

between 1-2%

c)

between 3-5%

d)

between 4-6%

52.

When there is inflation your purchasing power

a)

remains the same

b)

decreases

c)

increases

d)

loses all of its value

53.
The Consumer Price Index (CPI)
a)
consists of items a typical 18-year old might buy for himself or herself.
b)
uses a representative market basket to calculate current price levels in an economy.
c)
is equal to 200 in whichever year is considered the base year.
d)
only increases in times of economic depression.
54.

If you make more money than you should pay more in taxes is an example of:

a)

Proportional tax rate

b)

Regressive tax rate

c)

Progressive tax rate

d)

A fair tax rate

55.

Everyone, no matter the amount of income should pay the same tax rate is an example of

a)

Regressive tax rate

b)

Progressive tax rate

c)

Proportional tax rate

d)

Fair tax rate

56.

I make more money and do not use the services and welfare programs provided by my tax dollars is an argument for the use for a

a)

Proportional tax rate

b)

Regressive tax rate

c)

Progressive tax rate

d)

A fair tax rate

57.

The government should step in and help out the consumers in times before or during contraction period is the practice of

a)

Classical Theory of Economics

b)

Keynesian Economic Theory

c)

Trickle Down Economics

d)

C. Johnson's Theory of Economics

58.

The government should give tax breaks and subsidies to business in order to create jobs is an example of which economic theory?

a)

Supply-side economics

b)

Keynesian economics

c)

Classical economics

d)

Business economics

59.

If the economy is in a contractionary period of the business cycle the federal government will/should use

a)

Monetary Expansionary policies

b)

Fiscal Expansionary policies

c)

Monetary Contractionary policies

d)

Fiscal Contractionary policies

60.

If the economy is expanding too quickly the federal government will/should use

a)

Monetary Expansionary policies

b)

Fiscal Expansionary policies

c)

Monetary Contractionary policies

d)

Fiscal Contractionary policies