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D21 MIDTERM EXAM ECONOMICS

Total questions: 33

Worksheet time: 17mins

Name
Class
Date
1.

Scarcity results from unlimited wants and __________.

a)

unlimited wants

b)

unlimited resources

c)

limited wants

d)

limited resources

2.

Economics is all about ________.

a)

choices

b)

money

c)

the Stock Market

d)

globalization

3.

Which is an example of a scarce resource?

a)

water

b)

air

c)

soccer matches

d)

complaints

4.

Opportunity cost is the next best ___________.

a)

paycheck

b)

order

c)

choice

d)

cost

5.

You receive a marginal _________ from more consuming.

a)

benefit

b)

cost

c)

utility

d)

choice

6.

Which is a monetary incentive?

a)

cash bonus

b)

cake

c)

extra vacation time

d)

flexible house

7.

Which is a nonmonetary incentive?

a)

cash bonus

b)

stock options

c)

extra paycheck

d)

flexible hours

8.

What kind of property is owned by the government?

a)

McDonald's

b)

public

c)

private

d)

Dominoes

9.

Which is a nonrenewable resource?

a)

wind

b)

solar

c)

coal

d)

hydoelectric

10.

Which type of economy is controlled by individuals?

a)

mixed

b)

traditional

c)

command

d)

market

11.

According to John Smith, what controls the market?

a)

invisible hand

b)

government

c)

weather

d)

taxation

12.

HIgh demand leas to __________ prices.

a)

high

b)

low

c)

equal

d)

safe

13.

Low supply leads to __________ prices.

a)

high

b)

low

c)

equal

d)

safe

14.

Changes in supply and demand will lead to changes in ____________.

a)

profit

b)

price

c)

public

d)

private

15.

Equilibrium price is when quantity supplied equals ____________ .

a)

quantity demanded

b)

quantity

c)

quantity price

d)

supply price

16.

What are elements of the marketing mix?

a)

price

b)

product

c)

promotion

d)

All of the above.

17.

Which condition is trying to obtain a market share?

a)

property rights

b)

competition

c)

profit

d)

loss

18.

This is earned financial gain.

a)

private property

b)

copetition

c)

profit

d)

loss

19.

What happens to price as goods are less scarce?

a)

prices rise

b)

prices lower

c)

prices equalize

d)

profit

20.

What is produced by producers?

a)

quality

b)

demand

c)

prices

d)

goods and services

21.

Who is someone that acquires goods or services?

a)

entrpreneur

b)

seller

c)

producer

d)

consumer

22.

What protects consumers?

a)

inflation

b)

price controls

c)

deflation

d)

price chaos

23.

Price controls set which kind of price?

a)

minimum price

b)

maximum price

c)

both a minimum and maximum price

d)

None of the above

24.

What are products sold to another country?

a)

imports

b)

exports

c)

goods

d)

services

25.

What does domestic competition affect?

a)

goods and services produced

b)

price

c)

quality

d)

All of the above.

26.

What is the job of entrepreneurs?

a)

own a business

b)

operate a business

c)

organize a business

d)

All of the above.

27.

What is traded in financial markets?

a)

stocks

b)

bonds

c)

gold

d)

both stocks and bonds

28.

What are the functions of financial markets?

a)

borrowing and lending money

b)

price determination

c)

information coordination

d)

All of the above.

29.

Which is NOT a role of government in a market economy?

a)

providing national defense

b)

addressing environmental concerns

c)

determining prices

d)

defining property rights

30.

This occurs when governments don't ensure competition.

a)

cartel

b)

polyopoly

c)

duopoly

d)

monopoly

31.

Where does the US government show their choices?

a)

consumers rights

b)

the budget

c)

property rights

d)

None of the above.

32.

Why does the government use fiscal policy?

a)

keep the economy healthy

b)

minimize the effects of depressions

c)

minimize the effects of recessions

d)

All of the above.

33.

What are the aims of monetary policy?

a)

keep the economy healthy

b)

low and stable inflation rate

c)

maintain the foreign exchange rate

d)

All of the above.