WorksheetsEconomics Final Review 2
Total questions: 24
Worksheet time: 12mins
Which of the following type of tax is collected by state and local governments but not by the federal government?
Excise tax
Income tax
Sales tax
Tariffs
One advantage to using a debit card is that it allows the user to --
access currency without carrying cash
purchase goods without having any money
build a strong credit score
repay credit card debts faster
Money that has value simply because the government says it does is called --
credit
currency
fiat money
representative money
commodity money can best be described as --
currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves
a form of money which has an intrinsic value, meaning it is worth something in its own right rather than simply being a token of financial value
trade goods or services between two people without the exchange of money
money that consists of a token or certificate that can be exchanged for a specific good, such as gold, silver, or potentially water, oil, or food
Economic growth would most likely result from --
decreased trade
decreased sales or stock
increases employment
increased productivity
High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered into a period of --
expansion
investment
stagflation
recession
An expansionary period in the business cycle is distinguished by --
declining sales
low unemployment
high inflation
fewer excise taxes
*Few Sellers
*Some control over price
*High market entry barriers
*Some product differentiation
Monopolistic competition
Oligopoly
Pure competition
Natural monopoly
Recently, the government announced that it would discontinue the production of a particular military aircraft. How will this decision affect the circular flow model?
There will be a reduction in the income of households resulting in reduced purchasing power.
There will be an increase in the product market because aircraft makers will be more efficient.
There will be a shift of government spending to the production of alternative products.
There will be an increase in unemployment resulting in the creation of new types of jobs.
David's mother sends him to the grocery store to buy milk. While at the store, David decides he is hungry and buys a dozen doughnuts for a snack. At the cash register, David finds that after paying for the doughnuts, he doesn't have enough money to pay for the milk. David's mother decides it is time for him to get a job and earn his own money. David's best friend tells him that Deluxe Car Wash is hiring. He applies and is hired to become a car dryer. David is very excited about his new job and the money he will soon be earning.
-When David gets a job at the car wash, what is he doing?
buying his resource
selling his goods
buying his goods
selling his resource
The grocery store is which sector of the circular-flow model?
Factor
Households
Production
Business firms
One of the benefits of the U.S. free enterprise system is the--
equal distribution of goods and services
lack of union participation by workers
guaranteed returns on investments
amount of choices for consumers
Which of the following is most characteristic of the U.S. free enterprise system?
Markets that respond to consumer demand
Public ownership of the factors of production
Nationalization of energy companies
Government price controls
Andrew values where he lives. He likes to make decisions about his job and his ability to acquire wealth. He also wants to be the one to decide what producers should produce and what he is able to purchase. In which type of economy does Andrew live?
Subsistence
Communist
Free enterprise
Socialist
Which of the following economic systems is characterized by a lack of competition?
command
capitalism
free enterprise
mixed
Economic systems that are characterized by government control of the economic decision making process are considered to be --
free market
efficient
choice based
communist
Olivia lives in a country with a socialist economic system. There are three government television stations available for viewing. She bought a new television after payday and watches one of the government stations in the evenings.
-Which economic characteristic of the free enterprise system is most likely missing?
Wages
Economic freedom
Competition
Property rights
Casey works in a government-owned radio factory in a command economy. While the factory superintendent sets quotas for how many radios should be produced, workers rarely meet the quota, and the quality of the radios is low. However, they all get paid the same amount each week.
-Which characteristic of free enterprise is missing in this scenario?
Labor
Industrial production
Incentives
Wages
George and Martha bought a new home in a new neighborhood. When George built a large barn, his neighbors complained.
-which of the following economic characteristics of the free enterprise system will probably help George and Martha keep their barn?
Role of government
Competition
Economic Freedom
Property rights
The basic idea of choice presents which of the problems in economics?
Businesses can sell what they want.
People get to decide what they want.
Choice is a way of life.
Decisions produce costs.
Paying rent instead of purchasing tickets to a concert is an example of --
circular flow model
scarcity
property rights
opportunity cost
Alyssa is planning to open a small tailoring business. Which of the following represents capital needed to start such a business?
building space
Marketing team
Sewing machines
Dressmakers
Scarcity is a basic economic problem because --
governments limit production
people have trouble making choices
resources are limited
opportunity costs limit demand
Dell Software today announced the release of a fully localized Simplified Chinese version of Toad for Oracle. The new release marks the latest milestone for Dell Software's flagship database develpemnt and management solution.
--Press Release, Dell, July 2014 www.dell.com (http://dell.com)_(accessed July 24, 2014)
-What basic economic question is addressed in the press release?
What to produce?
How much to produce?
How to produce?
For whom to produce?
