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Economics Final Exam Review

Total questions: 65

Worksheet time: 34mins

Name
Class
Date
1.

Which definition fits this picture.

a)

The science of choice, exploring the choices made by individuals and organizations

b)

The study of how many human beings coordinate their wants and desires, given the decision-making mechanism, social customs, and political realities of the society.

c)

The study of choices when there is scarcity

d)

The study of how to get people to do things they are not wild about and not to do things they are wild about.

e)

All of them

2.

When there is a (a)   in jobs, society sees a higher percentage of unemployment.

3.

What does this picture represent?

4 lines
4.

Choose all the factors of production

a)
b)
c)
d)
e)
5.

Which one of these is not an economic model.

a)
b)
c)
d)
6.

Studying Texas' unemployment is microeconomics. Studying the European Union is (a)   .

7.

You get your haircut

a)

Good

b)

Service

8.

You buy a book from a garage sale

a)

Good

b)

Service

9.

You pay your sister $5 to clean your messy bedroom

a)

Good

b)

Service

10.

You buy an ice cream cone from an ice cream truck

a)

Good

b)

Service

11.

things purchased by consumers

a)

goods

b)

consumer

c)

producer

d)

supply

12.

A person who purchases a good or service

a)

consumer

b)

taxes

c)

supply

d)

good

13.

Basic things humans need to survive

a)

need

b)

want

c)

import

d)

demand

14.

how much of a good or service consumers want

a)

demand

b)

spending

c)

producer

d)

scarcity

15.

The amount available

a)

supply

b)

demand

c)

import

d)

natural resource

16.
In economic terms, which action shows a person acting as an investor?
a)
A person sells a car to a neighbor.
b)
A person puts money in a savings account.
c)
A person drives students to school.
d)
A person buys a new pair of shoes.
17.

What is the definition of a want?

a)

Something you would like too have but will be okay without it.

b)

Something you truly can't live without.

c)

None of the above

18.

what is Human Capital?

a)

Money Assets of a Company

b)

Immigration of people into America

c)

Treating yourself to a nice dinner

d)

A worker's skill, knowledge, and experience

19.

This mean of production can be defined as tool or base of knowledge used to make other goods or services

a)

natural resource

b)

human resource

c)

capital resource

20.

Which of the following means the study of people making choices with scarce resources, and the production, distribution, and consumption of goods and services?

a)

producer

b)

market price

c)

economics

d)

opportunity cost

21.

Which of the following means what you have to give up in order to make or get something else?

a)

producer

b)

market price

c)

consumer

d)

opportunity cost

22.
When the supply of a product or service goes up and the demand stays the same the Price will typically do what? 
a)
rise
b)
fall
c)
stay the same
d)
Consumer
23.
When the demand for a product or service is higher than the supply this causes what?
a)
shortage
b)
consumer
c)
surplus
d)
equilibrium
24.

Factors that cause the supply or demand to change, like surpluses, gaining resources, wars, disasters, pandemics are called?

a)

equilibrium

b)

shifter

c)

demand

d)

producer

25.
a person or company that makes, grows, or supplies goods to sell is called the?
a)
damand
b)
price
c)
producer
d)
shortage
26.
The desire or willingness a consumer has to purchase a good or a service is called?
a)
shortage
b)
supply
c)
price
d)
demand
27.
The amount of goods or services available is called?
a)
supply
b)
demand
c)
producer
d)
consumer
28.

The point where supply and demand are balanced is (where we tried to figure out the best prices of coffee?

a)

product

b)

demand

c)

surplus

d)

equilibrium

29.
When there is a shortage the price will usually? 
a)
rise
b)
fall
c)
remain the same
d)
equilibrium
30.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
31.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
32.
If a price is above equilibrium price, it creates a...
a)
shortage
b)
surplus
c)
market price
d)
demand
33.

Who primarily uses our tax money? (hint: choose 2 correct answers)

a)

Your employer

b)

The state government

c)

The Federal government

d)

Local Businesses

34.

The W-4 form lets...

a)

the government know how much you paid in taxes last year

b)

your employer know how much to withhold from your paycheck

c)

the 3 major credit bureaus know how many dependents you have

d)

you know how much you paid in taxes last year

35.

Jess is 21, in college, & has a job that provides 65% of her support. Is she a dependent?

a)

Yes

b)

No

36.

By claiming "exempt" on the W-4 form...

a)

You are paying all income taxes upfront at the START of the year.

b)

You are requesting an extension to file your taxes

c)

You will NOT have income taxes withheld from your paycheck.

d)

You are paying all income taxes at the END of the calendar year.

37.

Jason filed his tax return and owes money. If he doesn't want to pay a fee, when should he pay this amount by?

a)

April 15th

b)

October 15th

c)

December 31st

d)

January 1st of the next year

38.

True or False: All wages, tips, and bonuses are taxable unless specifically excluded.

a)

True

b)

False

39.
Purchase is withdrawn directly from a checking or savings account. 
a)
Debit card
b)
Credit card
c)
Both
40.
Each purchase is a loan that is repaid later
a)
Debit card
b)
Credit card
c)
Both
41.
Interest may be charged.
a)
Debit card
b)
Credit card
c)
Both
42.

Which is the best definition of personal financial planning?

a)

spending, saving, and investing money to enjoy life and achieve financial security.

b)

Listing ways to achieve your short-term and long-term financial goals.

c)

thinking about your attitudes toward money.

d)

using available sources of financial information.

43.

Which term refers to the general increase in the cost of goods and services?

a)

inflation

b)

interest rate

c)

liquidity

d)

income

44.

Which term refers to a plan for using your income in a way that best meets your wants and needs?

a)

opportunity cost

b)

a variable expense

c)

a budget

d)

a budget variance

45.

Which term refers to money taken out of your pay before you receive your paycheck?

a)

income

b)

deductions

c)

gross pay

d)

expenses

46.

Liquidity in Economics can be defined as...

a)

the ability of how quickly something can be converted to cash or money

b)

how the market changes in flux

c)

how money is converted into international currency

47.

A person who is associated with starting a business is know as

a)

Merchant

b)

Entrepreneur

c)

Salesman

d)

Businessman

48.

A legally established maximum price for a good or service, like a max price for insulin is...

a)

Price Ceiling

b)

Price Floor

c)

Price Control

d)

Minimum Wage

49.

A legally established minimum price for a good or service, like minimum wage.

a)

Price Ceiling

b)

Price Floor

c)

Price Control

d)

Minimum Wage

50.

Based on co-operation, Adam Smith believed that the economy would fix itself through the

a)

free-market and the invisible hand

b)

socialism

c)

communism

51.

Equilibrium is where

a)

The supply and demand curves intersect each other

b)

The supply and demand curves never cross

c)

The supply and demand curve are parallel, or next to each other.

52.

This type of investment or asset pools your savings with Government and Business securities over time.

a)

Stock investment

b)

Money market mutual fund

c)

Bond

53.

the uncertain chance of a possible loss

a)

invest

b)

risk

c)

loss

d)

bankrupt

54.

professional that makes stock trades for their investor

a)

dividend

b)

asset

c)

stockbroker

d)

stockholder

55.

to use money in hopes of making a profit

a)

risk

b)

invest

c)

dividend

d)

asset

56.

financial gain, a return on your money

a)

loss

b)

profit

c)

risk

d)

asset

57.

a resource/item with value owned by an individual or company

a)

index

b)

asset

c)

stock

d)

profit

58.

When a company earns a profit, sometimes those profits are distributed to the company’s shareholders. This means those shareholders are paid a _________________.

a)

dividend

b)

asset

c)

stock

d)

bankrupt

59.

Companies like Blockbuster have gone __________, losing all worth of their stock.

a)

dividend

b)

asset

c)

stock

d)

bankrupt

60.

Usually, when there is high demand (want) for ownership of a particular company or a product made by that company, what happens to the price of that company’s stock?

a)

goes up

b)

goes down

c)

stays the same

61.

Which of the following is an example of expansionary policy allowing more expendable consumer income?

a)

Increasing taxes

b)

Cutting Taxes

c)

Decrease government spending

62.

Forms of investing online through programs like Robinhood are examples of ________, which is risky and volatile, but can have significant short term changes and returns.

a)

Credit

b)

Day trading

c)

Bond

d)

Mutual market fund

63.

Which occurs or may occur when the

government pursues a contradictory economic policy?

a)

Economic growth may be reduced

b)

Taxes may be raised

c)

Government spending may be reduced

d)

All of the above

64.

_________, spreading out investments to reduce risk and losses, and you should do it for savings and your portfolio.

a)

Financial intermediary

b)

Prospectus

c)

Diversification

65.

_______________is a market that has a steady rise and growth over time.

a)

Bull Market

b)

Bear Market

c)

Weak Market

d)

Free Market