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(118 4-8) Economics TExES Test #5

Total questions: 17

Worksheet time: 9mins

Name
Class
Date
1.

Which of the following is not a result of the industrial revolution?

a)

Growth of cities

b)

Increased productivity

c)

Specialization and division of labor

d)

The rise in religious tolerance

2.

The_________ is a monetary of the economy's output during a specified time period and is used by all nations to measure and compare national production

a)

Float Rate

b)

Gross Domestic Product (GDP)

c)

Unemployment Rate

d)

National Output

3.

Inflation is the result of the economy__________?

a)

Expanding too Quickly

b)

Remaining Stable

c)

Expanding too Slowly

d)

Expanding in Conjunction with the Unemployment rate

4.

What is the difference between monopolistic competition and perfect competition?

a)

Perfect competition has many consumers and suppliers, while monopolistic competition does not

b)

Perfect competition provides identical products, while monopolistic competition provides similar but not identical products

c)

Entry to perfect competition is difficult, while entry to monopolistic competition is relatively easy

5.

Which best describes the economic system in the U.S.

a)

Most decisions are made by open market factors, with important regulatory functions and other market modifications the result of government activity.

b)

Most decisions are made by the government, but there is some input by open market forces

c)

Most decisions are the result of open markets, with little or no government modifications or regulation

6.

Capitalism and communication are alike in that they are both

a)

Organic systems

b)

Political Systems

c)

Centrally planned systems

d)

Economic Systems

7.

In a planned economy:

a)

The open Market determines how much of a good is produced and distributed

b)

Individuals produce and consume a specified good as commanded by their needs

c)

The government determines how much of a good is produced and distributed

d)

The open Market determines the demand for a good and then the government produced and distributed the good

8.

Economics is best described as:

a)

The study of how money is used in different societies

b)

The study of how different political systems produces goods and services

c)

The study of how human beings use limited resources to supply their necessities

d)

The Study of how human beings have developed trading practices through the years

9.

If society wants greater income equality, it will

a)

Impose a progressive income tax

b)

Impose high estate taxes

c)

Impose a gift tax

d)

All of the above

10.

Which of the following best defines American (GDP)

a)

The value, American dollars, of goods and services produced within the American borders during one calendar year.

b)

The value, American dollars, of all goods and services produced by American companies during one calendar year.

c)

The value, American dollars, of all American household incomes during one calendar year.

11.

Ivy loses her job because her skills as a seamstress are no longer required due to a new piece of machinery that does the work of a seamstress more quickly and for less money. which type of unemployment is this?

a)

Frictional

b)

Structural

c)

Cyclical

d)

Careless

12.

Which is considered part of the natural rate of unemployment?

1. Structural

2. Frictional

3. Cyclical

a)

1 only

b)

2 only

c)

3 only

d)

1 and 2 only

13.

The price of a fleece blanket goes up from $10 to $11. At the same time, demand goes down from 1000 blankets to 800 blankets. which of the following statements is true?

a)

Demand is elastic

b)

Demand is inelastic

c)

The price elasticity quotients, or Ed, is less than 1

d)

The price elasticity quotients, or Ed, is equal to 1

14.

The price of oil drops dramatically, saving the soda company great amounts of money spent to make the soda and deliver the soda to market. Prices of the soda pop, however, stay the same. this is an example of what?

a)

Sticky price

b)

Sticky wages

c)

The multiplier

d)

Aggregate expenditure

15.

Which of the following will result if two nations use the theory of comparative advantage when making decisions of which goods to produce and trade.

a)

Each nation will make all of their own goods

b)

Both nations will specialize in the production of the same specific goods

c)

Each nation will specialize in the production of different specific goods

d)

Neither nation will trade with one another

16.

How do banks create money?

a)

By printing it

b)

By taking it out of the Federal Reserve

c)

By loaning it out

d)

By putting it into the Federal Reserve

17.

Economics is best defined as the study of what?

a)

Scarcity

b)

Business

c)

Trade

d)

Supply and demand