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Economics Summative 1.1-1.3

Total questions: 24

Worksheet time: 2hrs 0mins

Name
Class
Date
1.

The lack of enough resources to produce everything people want is which central economic problem?

a)

Allocation

b)

Production Possibilities

c)

Productivity

d)

Scarcity

2.

The rising price of gasoline has motivated the government to release fuel form the US Strategic Petroleum Reserve. Which phrase BEST describes the short-term benefit of this policy?

a)

increased world-market prices for petroleum

b)

increased dependence on foreign fuel sources

c)

increased use of alternative fuels from private sector investment

d)

increased economic stability from low petroleum prices

3.

Which phrases BEST completes the list above?

a)

Consumer Demand

b)

Entrepreneurship

c)

Regulation

d)

Urban Growth

4.

Which economic concept is discussed in this excerpt?

a)

Marginal Benefit

b)

International Competition

c)

Monetary Incentives

d)

Opportunity Cost

5.

Which economic issues is MOST associated with a shortage of capital?

a)

not enough energy to fuel machines

b)

not enough workers to produce goods

c)

not enough money to build new factories

d)

not enough people who want to start businesses

6.

Regulating business and providing entitlements define the primary economic role of government in which economic system?

a)

Command Economy

b)

Mixed Economy

c)

Pure Capitalist Economy

d)

Traditional Economy

7.

Which term describes a factor of production?

a)

inflation

b)

labor

c)

scarcity

d)

tariff

8.

Which fact BEST supports the idea that government see internet access as a critical tool for society?

a)

In Saudi Arabia citizens have been jailed for posting offensive messages using the internet

b)

In Ethiopia, it has been difficult to expand internet access due in part to its largely rural population

c)

In Cuba, some citizens have found ways to get around government restrictions on accessing the internet

d)

In the United States, the government has a goal of providing affordable and fast internet access to one hundred million homes.

9.

In a market economy, the strongest incentive for entrepreneurship is the opportunity to?

a)

support projects for the public good

b)

gain personal prestige and fame

c)

determine regulatory and tax policies

d)

earn a profit on investments

10.

Use the diagram above to answer the question

a)

Business services would increase

b)

Labor available to businesses would decrease

c)

Business wages would increase

d)

Money available to businesses would decrease

11.

One way companies distinguish themselves from competitors is by?

a)

promoting differences in products

b)

increasing production capabilities

c)

supporting antitrust legislation

d)

improving safety standards for workers

12.

Use the diagram above to answer the following question

a)

Revenue for businesses will increase

b)

Wages for workers will increase

c)

Available labor for businesses will decrease

d)

Available products for households will decrease

13.

Use the chart above to answer the question

a)

1-Communism, 2- Socialism

b)

1-Socialism, 3-Communism

c)

2- Socialism, 3-Communism

d)

1- Communism, 3-Socialism

14.

Over the last few decades, television programming in the United States has become available through a number of services such as cable, satellite, and the internet. How does this trend demonstrate an effect of the free enterprise system?

a)

Higher capital cost have resulted in more investment opportunities

b)

Increased government regulation has led to higher prices

c)

Increased market competition has resulted in more choices for consumers

d)

Stronger copyright laws have limited access to new shows

15.

Which of the following BEST completes the list?

a)

Contract Law

b)

Interest law

c)

Labor Unions

d)

Competition

16.

What is the primary role of consumers in a free market economy?

a)

to sustain traditional production methods

b)

to purchase goods and services

c)

to balance the forces of supply and demand

d)

to meet the government production goals

17.

Use the information above to answer the question.

a)

Improvements in technology will enhance reliability.

b)

Expanded consumer choice will drive down prices.

c)

More intense competition will reduce the quality of goods.

d)

Increased demand for a product will cause prices to rise.

18.

Use the graph to answer the question

a)

There will be a 30,000-pound shortage

b)

There will be a 60,000-pound shortage

c)

There will be a 90,000- pound surplus

d)

There will be a 120,000-pound surplus

19.

Use the graph above to answer the question

a)

The price would decrease because demand would decrease

b)

The price would increase because demand would decrease

c)

The price would decrease because demand would increase

d)

The price would increase because demand would increase

20.

Use the graph above to answer the question

a)

Elasticity

b)

Equilibrium

c)

Opportunity Cost

d)

Marginal Production

21.

An example of a non-price determinate of a decrease in supply of wheat for bread would be?

a)

the introduction of a new fertilizers that increase wheat crop yields

b)

a drought in the farming states of the Midwest

c)

An increase in the cost of bread on store shelves

d)

Foreign farmers export wheat to the United States

22.

According to the law of supply, what caused the change indicated in these graphs?

a)

The price of pencils increased between 2008 and 2011

b)

Shipping rates increased between 2008 and 2011

c)

The price of toothpicks increased 2008 and 2011

d)

Electricity cost increased between 2008 and 2011

23.

Which factor can cause a shift on the demand curve?

a)

investment capital

b)

prices of other goods

c)

government regulation

d)

improved manufacturing efficiency

24.

Demand for a good will MOST likely decrease when?

a)

there are many substitutes for it

b)

the price of it decreases

c)

consumer income rises by ten percent

d)

retailers sell out of the product