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Final Review 2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What are the factors of production?

a)

The mathematical equations that determine the GDP

b)

The number of steps it takes to make a product

c)

The resources necessary to produce goods and services like land, labor, capital and entrepreneurship

d)

The goods and services that a country produces

2.

Which of the following is NOT a factor of production for a burger made at McDonald’s?

a)

Pen

b)

Ray Kroc, founder of McDonald’s

c)

Sydney, a McDonald’s employee

d)

Cow

3.

Which statement best describes scarcity?

a)

limited resources with limited wants/needs

b)

unlimited resources with limited wants/needs

c)

unlimited resources with unlimited wants/needs

d)

limited resources with unlimited wants/needs

4.

We do not currently have enough oil and fossil fuels to meet society’s need for them. Unfortunately, oil and fossil fuels cannot be replaced efficiently. What is this condition called?

a)

Shortage

b)

Scarcity

c)

Economics

d)

Opportunity cost

5.

Camryn is trying to make a decision about whether or not to start up her own business. What process is she engaging in when she considers the pros and cons of this new idea?

a)

opportunity cost

b)

cost-benefit analysis

c)

trade off

d)

underutilization

6.

Blake decides to give up his favorite activity of playing video games after school in order to get a job. In this scenario, what is playing video games?

a)

Blake’s opportunity cost

b)

Blake’s human capital

c)

Blake’s cost-benefit analysis

d)

Blake’s investment

7.

How does the term “Guns and Butter” represent the economic choices countries must make?

a)

It represents a choice between spending and saving

b)

It represents a choice between violence and peace

c)

It represents a choice between science and health

d)

It represents a choice between capital goods and consumer goods.

8.

If the Governor announced that teacher salaries were going to increase, what prediction would economists make about the demand of teaching jobs?

a)

More people will become teachers.

b)

It will stay the same.

c)

More teachers will seek other jobs.

d)

Fewer people will become teachers.

9.

When buyers purchase exactly what sellers are willing to sell, which condition has been achieved?

a)

Supply and demand

b)

Surplus

c)

Equilibrium

d)

Shortage

10.

Why would the US place tariffs on imports coming from China?

a)

To create a large percentage of federal revenue

b)

To protect American jobs and industries

c)

To close the borders to all foreign trade

d)

To make it easier to import the goods

11.

Cuba has been under this, forbidden to conduct trade with the US.

a)

Import Quota

b)

Export Quota

c)

Embargo

d)

Tariff

12.

What situation is an example of Adam Smith’s invisible hand theory?

a)

Allowing a 15 year-old student to work until midnight on a Tuesday night during the school year

b)

The California state government placing taxes on soda to protect the public

c)

Meat packers have no health or safety regulations on how they handle meats

d)

Wells Fargo opening a new branch in a community with few jobs and hiring over 50 workers

13.

When do you make or lose money from stocks?

a)

When the government pays you back

b)

When you sell it

c)

When you buy it

d)

Any time the stock moves up or down in the stock market

14.

How can you manage your credit responsibly?

a)

Only apply for loans when you know you can pay them back

b)

Limit your credit purchases to what you can pay off at the end of the month

c)

Limit the amount of credit you take out

d)

All of the above

15.

What type of savings account will earn you the most money in the long run?

a)

One that offers compound interest

b)

One that offers a principal

c)

One that offers simple interest

d)

One that offers accrued interest

16.

What is a country’s GDP?

a)

The amount of goods a country exports in a year

b)

The amount of goods the world produces in a year

c)

The amount of goods a country produces in a year

d)

The amount of goods a country imports in a year

17.

Why is the US not a purely capitalistic country?

a)

The government regulates the treatment of workers

b)

The government supplies a pension to retirees

c)

The government regulates wages

d)

All of the above

18.

Last year, Spain had 25.65B in imports and 23.02 in exports. What type of trade balance did they have in 2018?

a)

Budget Surplus

b)

Unfavorable Balance of Trade

c)

Budget Deficit

d)

Favorable Balance of Trade

19.

People are free to open and operate their own business without government interference

a)

Traditional

b)

Mixed

c)

Command

d)

Market

20.

Economic decisions made by the people with government oversight and approval

a)

Traditional

b)

Command

c)

Mixed

d)

Market