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Economics Practice Test

Total questions: 12

Worksheet time: 14mins

Name
Class
Date
1.

Which of these is NOT a function of money?

a)

Store of Value

b)

Medium of Exchange

c)

Record of Finances

d)

Unit of Account

2.

Inflation is when prices _______ at a high rate

a)

Rise

b)

Fall

3.

True or False:

If home sales increase greatly for several months in a row, there would likely be a rise in interest rates for home mortgages.

a)

True

b)

False

4.

A person with little education and few skills will likely...

a)

Earn a higher income

b)

Earn a lower income

5.

True or False: Someone who starts an online store selling soaps that they create is an entrepreneur.

a)

True

b)

False

6.

When productivity increases, GDP...

a)

Stays the same

b)

Decreases

c)

Increases

7.

True or false: payroll taxes are a source of ONLY federal tax revenue

a)

True

b)

False

8.

The value of all goods and services produced within domestic borders is known as...

a)

Simple Interest

b)

Productivity

c)

Inflation

d)

The Gross Domestic Product (GDP)

9.

In the Circular Flow diagram, what flows from households to businesses?

a)

Income

b)

Expenditures

c)

Factors of Production

d)

Nothing

10.

Who would be considered a part of the Unemployment Rate?

a)

Henry is 22 years old and actively looking for a job in sales, but is not currently employed.

b)

Susan is a 12 year old 7th grade student who does not have a job.

c)

Robert is 88 years old and is no longer able to work.

d)

Camille is 35 years old and is not looking for a job, she does not currently have a job.

11.

If workers are laid off because new technology has replaced their jobs, which type of unemployment are they experiencing?

a)

Casual

b)

Structural

c)

Frictional

d)

Cyclical

12.

True or False: the video game console industry is an oligopoly because there are only a few companies producing video game consoles.

a)

True

b)

False