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Economics Midterm Quizizz

Total questions: 53

Worksheet time: 53mins

Name
Class
Date
1.
A systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.
a)
rational decision-making
b)
marginal cost
c)
marginal benefit
d)
marginal analysis
e)
efficient points
2.

A rational decision maker:

a)

ignores marginal changes and focuses instead on "the big picture".

b)

ignores the likely effects of government policies when he or she makes choices.

c)

takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.

d)

takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.

3.

Being an expert in one job, product, or service is called ___________________.

a)

economic interdependence

b)

economic specialization

c)

opportunity cost

d)

scarcity

4.

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

a)

subsistence

b)

specialization

c)

scarcity

d)

bartering

5.
The definition of Scarcity is...
a)
An unlimited amount of resources to meet limited wants and needs
b)
A limited amount of resources to meet unlimited wants and needs.
c)
When people use time and energy to create events
d)
a city where individuals commit themselves to unlimited wants and needs
6.

The idea that resources are limited

a)

scarcity

b)

supply

c)

demand

d)

inflation

7.
a)

an increase in the price of a complementary good.

b)

a fall in income for most buyers.

c)

an increase in the price of a close substitute

d)

an increase in wages for workers who produce the good.

8.

Goods and services that are provided by the govt, paid for by taxes, are low to no cost to use, and to benefit all people are called:

a)

Private property

b)

Businesses

c)

Public goods

9.

What are governments MOST LIKELY attempting to do when they increase unemployment benefits, implement more welfare programs, and rearrange tax brackets?

a)

resolve market failures

b)

redistribute income

c)

invest in technology

d)

protect property rights

10.
What do points inside the PPF indicate?
a)
The combination of goods that employ goods efficiently
b)
The combination of goods that employ resources fully
c)
The combination of goods that do not employ resources fully
11.
What does point Y represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
12.
Which point represents "resources are not being used efficiently, or resources are being wasted or idle"?
a)
Point A
b)
Point Y
c)
Point X
d)
All of the above
13.

In which economic system is the protection of private property rights essential?

a)

Command

b)

Traditional

c)

Market

d)

Socialism

14.

An economic system in which individuals and businesses make decisions about what to produce.

a)

Market economy

b)

Mixed economy

c)

Communism

d)

Command economy

15.

A maximum price consumers are required to pay for a good or service.

a)

Price Ceiling

b)

Equilibrium

c)

Market Clearing Price

d)

Price Floor

16.
When the demand for a product exceeds the supply for the product, there is a ...
a)
Shortage
b)
Surplus
17.
If the price of printers goes down, what happens in the market for ink cartridges?
a)
Supply increases.
b)
Supply decreases.
c)
Demand increases.
d)
Demand decreases
18.

Which of the following demonstrates price equilibrium?

a)
b)
c)
d)
19.

Which of these demonstrates a shortage of goods?

a)
b)
c)
d)
20.

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?

a)

Product Market

b)

Factor Market

c)

Firms

d)

Individuals

21.

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

a)

Factor Market

b)

Product Market

c)

Firms

d)

Individuals

22.

Which economic system is based on government control?

a)

Traditional

b)

Command

c)

Market

23.
Katia is an accountant in a government run business where she was placed after graduation.
a)
Command
b)
Traditional
c)
Free Market
d)
Mixed
24.

The law of demand argues that as prices rise

a)

the quantity demanded will fall

b)

the quantity demanded will rise

c)

the demand curve will shift to the right

d)

quantity demanded will fall due to a decrease in demand

25.

The 'law of supply' suggests that

a)

price and quantity supplied are directly related

b)

price and quantity supplied are inversely related

c)

movements along the supply curve are caused by a price fall

d)

supply will expand until market equilibrium is reached

26.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
27.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
28.

Which of the following is an example of a natural monopoly?

a)

Coca-Cola

b)

City of McKinney water service

c)

United Airlines

d)

Levi Jeans

29.
Which is an example of a natural monopoly?
a)
a city water system
b)
an intergovernmental revenue payment
c)
 a balanced budget amendment
d)
all three of these
30.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
31.

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

32.

Which of the following is an investment in your own Human Capital? Select all that apply

a)

On the job training

b)

Getting an college degree

c)

Attending a workshop in your occupation

d)

Donating clothes to the local Goodwill

33.
This type of business is owned by one person.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
34.
Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
35.

According to the law of demand, the relationship between "price" and "quantity demanded" is:

a)

Inverse

b)

Direct

c)

Not correlated

36.
Which of the following is an advantage of the corporation as a form of business ownership:
a)
Less complex requirements
b)
Separate owners and managers
c)
Limited liability
d)
High Taxes
37.
Characteristics include owned by two or more people and may be general or limited
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
38.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
39.
For the law of supply, as price rises, what happens to quantity supplied?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
40.
Suppose that a new machine that speeds up automotive production is introduced into the auto industry. This would cause the PPF to
a)
Shift outward
b)
Shift inward
c)
Do nothing
d)
Not enough information is provided
41.
Which market structure involves selling identical products?
a)
Perfect Competition
b)
Monopolistic Competition
c)
Oligopoly
d)
Monopoly
42.

Using the pizza store graphic, what market structure best fits the pizza industry?

a)

Monopoly

b)

Oligopoly

c)

Perfect competition

d)

Monopolistic competition

43.

Markets like automobiles, cell phones, cable TV, and internet providers are examples of which market structure?

a)

Monopoly

b)

Oligopoly

c)

Perfect competition

d)

Monopolistic competition

44.
Labor costs are rising through the roof! Minimum wages are now at $25 an hour. This means even the basic item will need to cost more to keep up with rising costs. What determinant of supply does this most relate to?
a)
Change in Technology
b)
Change in Number of Sellers in the Market
c)
Change in Cost of Factors of Production
45.

Identify the correct determinant of supply:

Example: If the cost of electricity used to power an automotive factories falls, the supply of cars in the market increases

a)

Cost of production/resources

b)

Number of sellers

c)

Change in expectations

d)

Change in technology

46.
Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
47.

A _________ economy is a market-based system in which the government is involved to some extent.

a)

Traditional

b)

Planned/command

c)

Mixed

d)

Free Market

48.
An effective price floor must be set above equilibrium, resulting in:
a)
a shortage
b)
a surplus
c)
limited choices
d)
None of the above
49.
Equilibrium in a market means which of the following?
a)
the point at which quantity supplied and quantity demanded are the same
b)
the point at which unsold goods begin to pile up
c)
the point at which suppliers begin to reduce prices
50.

Is the minimum wage a “price ceiling” or a “price floor?

a)

price ceiling

b)

price floor

51.

Which of the following best describes an oligopoly?

a)

many monopolistically competitive firms

b)

a few firms sharing monopoly power

c)

a former monopoly that has been broken up by the government

d)

a government-granted franchise or monopoly

52.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

53.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

The "gifts of nature" or natural resources not created by human effort.

d)

the tools, equipment, and factories used in production of goods and services