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WorksheetsEconomics Final Review
Total questions: 100
Worksheet time: 3hrs 32mins
The study of how people make decisions to satisfy their needs and wants
Scarcity
supply and demand
economics
Goods and services a country produces and sells to other countries
imports
exports
demand
supply
Goods and services brought in from other countries
supply
exports
imports
tariff
A tax on imports
tariff
import tax
supply
embargo
Which is an example of a trade barrier?
Japan is allowed to send as many electronic products to the U.S. as they want.
The U.S. freely trades with other countries with no restrictions.
A high tax is placed on all diamonds received from Africa.
Free Trade?
Flow of goods and services between countries without barriers/restrictions.
Anything that prevents the free flow of goods and services coming into a country.
Trade Barriers:
Flow of goods and services between countries without barriers/restrictions.
Anything that prevents the free flow of goods and services coming into a country.
Free Trade
Tariffs and quotas raise prices of imported goods
Raise prices for consumers
Lower prices for consumers
May slow improvements or innovations to lower costs
Trade Barriers
Influence consumers into purchasing domestically produced goods
•Elimination of businesses that are not competitive
Access to more product markets
Increased competition
"Comparative Advantage
country's ability to produce a product relatively more efficiently, or at a lower opportunity cost
. ability to carry out a particular economic activity more efficiently than another
Absolute Advantage
country's ability to produce a product relatively more efficiently, or at a lower opportunity cost
ability to carry out a particular economic activity more efficiently than another
What is inflation?
decrease in prices of products in an economy
rise in most prices of products in an economy
rise in some prices of products in an economy
increase in average price levels of all products in an economy
Which of the following is NOT an effect of inflation?
purchasing power changes
value of wages changes
interest rates change
prices stay the same
In the long run, the economy of the United States has
steadily grown over time.
steadily declined over time.
behaved in ways that cannot be explained by modern macroeconomics.
experienced drastic fluctuations, but it is back to its old levels now.
GDP is an important economic measurement because it
provides valuable data on unemployment rates.
measures the combined total of all intermediate and final goods produced.
measures all final goods and services produced by a country.
includes all economic activity, incluing financial transactions and purchases of used goods.
When the economy experiences expansion, it is most likely the case that
GDP is increasing, unemployment is increasing, and inflation is decreasing.
GDP is increasing, unemployment is decreasing, and inflation is increasing.
GDP is decreasing, unemployment is decreasing, and inflation is increasing.
GDP is decreasing, unemployment is decreasing, and inflation is decreasing.
All of the following people are considered UNEMPLOYED except
Molly, who filled out three job applications this week.
Ryan, who currently serves in the military.
Kyle, who only worked for 30 minutes last week.
Brittany, who was recently fired from her job.
When the unemployment rate is relatively high,
the growth in real GDP is high.
the growth in real GDP is low.
inflation is also relatively high.
the amount of physical capital available has decreased.
GDP per capita is found by dividing a country's GDP by it's
population.
average birth rates.
number of households.
A higher GDP generally correlates to a(n) ___________ standard of living.
higher
lower
unrelated
You have job
Employed
Unemployed
Unemployment rate
Sum of the employed and the unemployed
Employed
Unemployment
Labor Force
You have no work in the previous week but were available to and have been actively pursuing a job over the last month.
Employed
Unemployed
What do economists mean by the term "scarcity"?
Having too few or too little of resources
Having too many resources
Having just enough resources
Having the correct amount of resources
Which of the following is not one of the three basic questions economists try to solve?
What should be produced?
How should it be produced?
Who gets what is produced?
When should it be produced?
What is supply?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
What is demand?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
Money is a medium of exchange, store of value, and a unit of account, durable, portable, divisible, and uniform.
True
False
Which of these examples is a service?
Mr. Farr sells guitars.
Mr. Swenson gives art supplies to consumers.
Coach provides lessons for different sports.
Ms. Miller writes books.
Jenny has hundreds of stuffed animals to sell. The stuffed animals are considered the _________.
supply
demand
buyer
seller
Why would a business want to spend their money to invent new items?
They can save money
They will fix broken items
They can buy cool goods
They can make new goods to sell
What is supply?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
What is demand?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
What is profit?
the money you have left over after you paid your bills
how many people want your good/service
the amount of an item you have
none of these
What does it mean when you save money?
You buy a new outfit.
You put money away for later.
You invent a new good.
You give money to help animals.
Opal saved money in the bank. From doing this, she earned _______.
Interest
Invest
Some companies _______ in inventions that will help them compete with other companies.
Interest
Invest
Apple saved some of their money to create the new iPhone X. This choice means Apple _______ in their company.
Interest
Invest
Ms. Miller put $200 into her account, but now she has $230. This is because of ______.
Interest
Invest
Which of the following will increase your profit for selling hot chocolate?
Use expensive materials
Lower the price
Give each buyer more hot chocolate
Use cheaper materials
Money that you put in a savings account______.
can never be spent
can earn interest
will be stolen
is going to be donated
Which of these is a way that a business can use its money wisely/invest in their business?
It can use more expensive resources.
It can invent new goods.
It can buy machines to make goods.
All of the above
iPhone X just came out and many people want it. What will happen to the price?
A new bakery comes to town. Now there are more options for a bakery. What will happen to the price?
For the market, Opal is selling brownies. Dyamonde is also selling brownies. What will happen to the price?
Halloween is almost here! The supply of candy is going down. What will happen to the price?
An economy based on private ownership of business and consumers freely choose goods and services.
Capitalism
Communism
Traditional
Mixed
The value of all the goods and services that a country produces in a year.
Gross Domestic Product (GDP)
Factors of Production (FOP)
Free-Market Economy (FME)
when a country becomes skilled at producing one good or service
specialization
scarcity
profit
labor
SSEPFb
SSEPF2
SSEPF5
SSEPF2a
SSEPF4a
SSEPF1a
SSEPF4a
Why does the government tax the people?
Taxes pay for government programs and services, such as schools and the military.
The government does not tax the people.
Taxes allow businesses to make more money.
The government taxes people so that no one can get too rich.
When people sell their labor to a business they earn money. What is this money called?
taxes
income
profit
economy
