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Economics pre-test 1st quarter

Total questions: 50

Worksheet time: 38mins

Name
Class
Date
1.
Economics is...
a)
studying goods, services, and how people can get them.
b)
studying trees, bushes, and other plants.
c)
studying animals and wildlife.
d)
studying food, and how food is made.
2.

Which of these is a good?

a)

Librarian

b)

Teacher

c)

Computer

d)

Mechanic

3.

Which of these provides a service?

a)

Pumpkins

b)

Mailman

c)

Turtles

d)

Cars

4.

The people who grow or create goods are called...

a)

producers

b)

consumers

c)

banker

d)

traders

5.

Which of the following is a need?

a)

Crayons

b)

Video Games

c)

Basketballs

d)

Houses

6.

How much of a good or service is available AND how much people want it. (The more people want it, the more they'll pay for it.)

a)

Scarcity

b)

Specialization

c)

Supply and Demand

d)

Standard of Living

7.

Buying, selling, or exchanging goods or services.

a)

Trade

b)

Opportunity Cost

c)

Interdependence

d)

Scarcity

8.
A garbage truck driver is an example of which Factor of Production?
a)
labor
b)
land
c)
entrepreneurship
d)
capital
9.
factory worker
a)
Natural
b)
Labor
c)
Capital
d)
????????
10.
a farmer
a)
Natural
b)
Labor
c)
Capital
d)
????????
11.

Which factor of production would you consider a lawn mower?

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneur

12.

What is productivity?

a)

working on products

b)

goods that are produced

c)

amount of goods or services workers can produce in a period of time

13.

What is the main goal for businesses?

a)

profit

b)

productivity

14.

What would be an example of technology improving productivity?

a)

phones

b)

computers

c)

machines

15.

What are three ways businesses can improve productivity?

a)

new workers,technology, money

b)

trained workers, technology, money

c)

trained and educated workers, equipment, technology

16.

How do consumers benefit from companies being more productive?

a)

product is out faster

b)

the cost decreases

17.

In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)

a)

Command

b)

Socialism

c)

Market

d)

Traditional

18.

Which of the following best explains a mixed economy?

a)

Private ownership of the factors of production and regulation of businesses by government

b)

Market exchanges answer all three of the big economic questions

c)

Family customs and traditions determine what and how to produce a good

d)

Government answers all three of the big economic questions

19.

_____________ are a positive incentive for entrepreneurs to start a business despite the risks.

a)

Pride

b)

Wealth

c)

Profits

d)

Being an employer

20.
Place where buyers and sellers meet to exchange goods and services for money
a)
Market
b)
Factor of production
c)
Money
d)
Interdependent
21.

What does government provide with the revenue it takes in from taxes?

a)

Headaches

b)

Public goods and services

c)

More Congressmen

d)

Greater control of the media

22.

Competition – The struggle between two or more businesses for the money or consumers

a)

True

b)

False

c)

I have no idea.

23.

Demand – Consumers’ desire to buy a particular good or service

a)

True

b)

False

c)

I have no idea.

24.

Consumers – Someone who buys or uses goods and services

a)

True

b)

False

c)

I have no idea.

25.

A product brought into a country to be sold.

a)

Import

b)

Export

c)

I really don't know the difference between the two.

26.

A product sent from one country to another to be sold.

a)

Import

b)

Export

c)

I really don't know the difference between the two.

27.

,In my country, the government tells me where to work.

a)

Traditional

b)

Command

c)

Market

d)

Mixed

28.

In my country we have no need for money. By custom, some of us hunt, others farm, and we are all taken care of.

a)

Traditional

b)

Command

c)

Market

d)

Mixed

29.

This document stated people have certain unalienable rights that include life, liberty and the pursuit of happiness

a)

Declaration of Independence

b)

The Constitution

c)

The Articles of Confederation

d)

The Bill of Rights

30.

written in the late 1600s and further limited the power of the king and stated that the people had certain rights

a)

Magna Carta

b)

English Bill of Rights

c)

Mayflower Compact

d)

Common Sense

31.
Advances in technology are generated by_______________.
a)
major corporations
b)
people's needs
c)
corporate advertising
d)
other countries
32.

A Profit and Loss Account summarises a business's

a)

stock and raw materials

b)

highs and lows

c)

pros and cons

d)

revenues and costs

33.

If a business's costs exceeds it sales revenue, it will experience a ........?

a)

loan

b)

profit

c)

loss

d)

debt

34.

The profit and loss account is used by people who may want to become?

a)

customers

b)

suppliers

c)

consumers

d)

investors

35.

Desire, Capacity and Willingness gives rise to___________

a)

Need

b)

Want

c)

Demand

d)

All of the Above

36.

Other things remaining the same, the amount demanded increases with a fall in price and diminishes with a rise in price.

a)

Is it true for Law of Demand

b)

It is incorrect for the Law of Demand

c)

It is true for Law of Supply

d)

It is incorrect for the Law of Supply

37.

Pizza and a Burger would be an example for

a)

Complementary Goods

b)

Substitute Goods

c)

Both

d)

Neither

38.
Demand is almost always more elastic at higher prices and less elastic at lower prices.
a)
True
b)
False
39.
Elasticity of demand is greater in the short-run
a)
true
b)
false
40.
If the price on a product goes up the quantity demanded will go down. This follows the economic theory of:
a)
Law of Demand
b)
elasticity
c)
income effect
d)
None of the above
41.
which of the following is not a determinant of demand elasticity?
a)
availability of substitutes
b)
share of consumer's budget spend on good
c)
duration of adjustment period
d)
government spending
42.
The following is a factor that will not cause the demand curve to shift:
a)
Advertising
b)
Population
c)
Price
d)
Consumer expectations
43.
Consuming more of one good because of a change in price of another good is known as the 
a)
income effect
b)
substitution effect
c)
elasticity effect
d)
demand effect
44.

the amount of product producers are willing to bring to the market at any price.

a)

quantity supplied

b)

total product

c)

theory of production

d)

law of supply

45.

Which of the following defines "Complementary Goods?"

a)

Goods that can be used to replace the purchase of similar goods when prices rise

b)

Goods that are commonly used with other goods

c)

Goods that are independent of other markets

46.

Which of the following applies when the Total Revenue Test is performed and total revenue drops?

a)

Elastic Demand

b)

Inelastic Demand

47.
The law of demand states that if the price of CD’s rise, consumers will
a)
Buy more CDs
b)
Buy fewer CDs
c)
Quantity demanded will not change
48.
The law of supply states that if the price of CD’s rise, suppliers will
a)
Supply more CDs
b)
Supply fewer CDs
c)
Quantity supplied will not change
49.
Which of the following is NOT a determinant of the supply of peanut butter?
a)
The price of peanuts 
b)
The wages of peanut butter factory workers 
c)
The income of peanut butter consumers
d)
Existing peanut butter making technology
50.
What does a “surplus” (extra amount) of goods in a market imply?
a)
Prices are too high
b)
Prices are too low
c)
Supply is too low
d)
Demand is too high