WorksheetsEconomics Final
Total questions: 55
Worksheet time: 25mins
How many distinct factors of production do economists recognize?
One
Two
Three
Four
What primary issue must every economic system deal with?
Uneven distribution of wealth
Production probabilities
Scarcity
Labor disputes
What increases when an economic system experiences Economic Growth?
goods and services
opportunity cost
inflation
mass consumption of tangible products
Water cheap=Needed
Diamonds expensive=Not Essential
Contradiction of value
Paradox of Value
Non-Essential parody
Domestic Imbalance
Next best choice
Trade Off
Secondary expense
Generic
Opportunity Cost
How can an economy increase its productivity?
Investments
Decrease capital gains
Increase efficiency
Hire more labor or purchase more machines
When a business needs to decide whether a certain action is worth the cost, the most helpful analysis would be a(n)
production possibility comparison.
cost-benefit analysis
economic model
needs assessment
Which of the following reasons would you conduct a Decision Making Grid?
To purchase a house
Deciding on a college
Making plans for a vacation
All the above
You get a job at the local farmers market for $10/Hr. You are
an entrepreneur
engaging in the Product Market
participating in the Factor Market
providing Physical Capital
You purchase a new television, enjoy it for a year, then decide to sell it. The TV is considered a(n)
durable good.
non-durable good.
service.
absolute good.
The government owns "part" of the factors of production, but not all.
Command Economy
Free Market
Traditional Economy
Socialist Economy (Mixed)
The government will decide your college and career.
Communism
Socialism
Democracy
Interdependent
What group is most fearful of an economy that is transitioning from Command to Free?
Workers/Laborers
Factory Owners
Government Leaders
Buyers/Consumers
Which of the lists below shows most to least flexible
command, socialism, free market
free market, socialism, command
socialism, command, free market
free market, command, socialism
In which economy is there a great deal of uncertainty?
Command
Traditional
Free Market
Socialism
Quantity is more important that Quality.
Free Market
Traditional Market
Command Economy
Socialist Economy
Karl Marx believed that ______________ would greatly benefit from a Socialist Economy.
Property owners
The government
Factory Owners
Workers
Under a Free Market Economy, who has the greatest power?
Factory Owners
Government Leaders
Workers
Consumers
Each economic system has characteristics that make it unique. Which of the following is a characteristic of a Free Market?
Primarily Centrally Planned
Factories have freedom to produce whatever they want, where they want
Citizens are granted the freedom of Voluntary Exchange
Governmental creation of minimum wage
Which question do consumers answers in a Free Market
What
How
When
Where
Which of the following is NOT a Factor of Production?
Land
Labor
Wage
Capital
Of the 4 Factors of Production, which do Economist define as being the most important?
Land
Labor
Capital
Entrepreneurs
By offering Unemployment Insurance to workers, the government is fulfilling its role as a
Protector
Provider
Regulator
Producer
Social Security, Medicare, Medicaid
Protector
Provider
Producer
Regulator
Usefulness + Satisfaction
Demand
Incentive
Utility
Consumerism
Under demand, what is the only thing that can cause a movement ALONG the demand curve?
Elasticity
Change in Price
Diminishing Value
Substitutes
Which of the following is required for "Demand" to exist?
Ability
Desire
Willingness
All are correct
After running a marathon the runner really enjoys the first big drink of water, but losing the enjoyment after being rehydrated.
Substitution Effect
Decreasing elasticity
Diminishing Marginal Utility
Unit Elastic
Which of the following will occur if you experience an Income Effect?
Change in demand forced by substitution
Increase of compliment purchases
Change in quantity demanded
Proportionate change in purchases equal to change in income
Which of the following products would be inelastic?
Electricity
Pencils
Vacations
Paper
Utility is defined as the "usefulness" of a product. What is Marginal?
Satisfactory
Border
Proportional
Additional
What causes a demand curve to slope down and to the right?
because quantity demanded increases as price decreases
because of the natural elasticity of the market
because it shows how increasing incentives changes demand
because it reflects the desire, ability, and willingness of consumers
A Change in Quantity Demanded
Movement along a demand curve
Shift of a demand curve
Sufficient substitutes
Abundance of complements
Change in Price causes a change in revenue to move in opposite direction at the same rate.
elastic
inelastic
unit elastic
lack of information
Product that is defined as expensive/costly is exchanged for a product that is less expensive.
Income Effect
Substitution Effect
Consumer Transition
Change in Quantity Demanded
A factory producing chocolate bars is able to generate enough revenue to cover its cost.
Overhead
Marginal Production
Marginal Product of Laboe
Break Even Point
If a supplier begins to notice the revenue is decreasing, he/she would likely
Only Increase output
Only Decrease output
Increase output and decrease price
Decrease output and decrease price
Change in Supply
Determined by prices
Shift of supply curve
Will lead to increased production
Will lead to decreased production
In the graph of "Marginal Product of Return", where do we see "Diminishing Returns?"
Stage I
Stage II
Stage III
Contractual workers, Taxes, Unemployment
total cost
variable cost
fixed cost
marginal cost
When a government in a Free Market Economy passes a bill that will impact industrial production, we would likely see
an increase in prices and output
production rates decrease
a decrease of production at every price
a shift to the left or the right
Referring to the "Marginal Product of Return," where would a company see "Negative Returns?"
Stage I
Stage II
Stage III
When a company is determining "Total cost," it must look at
fixed cost and overhead
fixed cost and marginal cost
fixed cost and variable cost
marginal cost and overhead
At what stage in "Marginal Product of Labor" would a company be most likely to hire more workers?
Increasing marginal returns
Decreasing marginal returns
Uncertain marginal returns
How can the government impact/influence supply?
Unemployment insurance
Shift to the right
Marginal costs
Subsidies
Live Christmas trees were in big demand this year, but the supply had trouble meeting the demand. This is an example of
Unit elasticity
Elastic
Inelastic
Government regulation
During WWII the United States initiated a "rationing" program to ensure everyone has access to essential products. What is the biggest problem with a government issuing a rationing program?
Black Market
Cost/Expense
Inefficiency
No Flexibility
Equilibrium
Supply = Demand
Reduction of supply
Increase in demand
Can only be achieved with government regulations
Equilibrium
Remains constant
Only changes with industrial influences
Is constantly moving
Will always shift to the left
What can prevent a market from reaching Equilibrium?
Hiring more workers
Increase in taxes
Consumer spending power
Price Floor
Which of the following is a Public Good
Army
Police
Public Library
All are correct
Which are completely opposite of each other?
Pure Competition/Monopolistic Competition
Oligopoly/Monopoly
Monopoly/Pure Competition
Monopolistic Competition/Oligopoly
Rockefeller polluted the ground and rivers by disposing of petro during the refining of kerosene. This is an example of
Technological innovation
Negative externality
Neutral spillover costs
Industrial consequence
Multiple produces selling like, but not exact, items.
Monopoly
Oligopoly
Monopolistic Competition
Pure Competition
Natural Monopoly
Illegal in the United States
Primary agricultural products
Is not controlled by government
Permitted by government under government regulations
