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Econ S2 Midterm Assessment Review

Total questions: 35

Worksheet time: 19mins

Name
Class
Date
1.

Something we desire but that is not necessary for survival

a)

Want

b)

Need

c)

Good

d)

Service

2.

Something essential for survival

a)

Want

b)

Need

c)

Good

d)

Service

3.

Physical objects that someone produces

a)

Want

b)

Need

c)

Good

d)

Service

4.

An action or activity that one person performs for another

a)

Want

b)

Need

c)

Good

d)

Service

5.

The fact that there are limited amounts of goods and services to meet unlimited wants is called:

a)

Scarcity

b)

Shortage

c)

Surplus

d)

Economics

6.

Economics is the study of how people seek to satisfy their needs and wants by making choices

a)

True

b)

False

7.

Economics is the study of how society manages its

a)

limited wants and unlimited resources

b)

unlimited wants and unlimited resources

c)

limited wants and limited resources

d)

unlimited wants and limited resources

8.

What type of economy involves a powerful government which owns all the "means of production" and makes all decisions regarding society's resources.

a)

Traditional Economy

b)

Market Economy

c)

Command Economy

9.

In which economic system is some property owned by the government and some is owned by individuals?

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

d)

Mixed Economy

10.

In which economic system do children already know what they'll be when they grow up because they will be trained to do what their parents and grandparents have done?

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

d)

Mixed Economy

11.

In which economic system do consumers have an almost endless range of choices because many companies are competing against one another?

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

d)

Mixed Economy

12.

To focus on producing one thing to improve productivity is known as:

a)

Specialization

b)

International trade

c)

Absolute Advantage

d)

Supply and Demand

13.

This is a tax on imports that is used to increase price of foreign products and raise government revenue.

a)

tariff

b)

quota

c)

subsidy

d)

embargo

14.

This is the most restrictive of the trade restrictions a nation can use to close off all importation of a product.

a)

tariff

b)

quota

c)

subsidy

d)

embargo

15.

GDP is calculated by

a)

adding up the cost of goods used in producing the item

b)

subtracting all costs from total revenue

c)

adding consumption (final goods bought) + investment (intermediate goods produced) +government spending+ (exports sold - imports bought)

d)

subtracting items purchased from the cost of items used to produce them.

16.

High levels of GDP per capita indicate...

a)

Higher levels of happiness

b)

Higher standard of living

c)

Equal levels of wealth

d)

Self-sufficient communities

17.

Which is an example of investment in human capital?

a)

trucks

b)

factories

c)

education

d)

highways

18.

______________ goods are those goods which have crossed the boundary line of production and are ready for use by their final users.

a)

Final

b)

Intermediate

c)

GDP

d)

Good

19.

What is Trade War?

a)

Countries fight with each other by throwing goods at each others

b)

Similar to Star Wars

c)

Selling and Buying a war

d)

Countries fight against each other economically, using money instead of weapons

20.

When people trade how do both sides benefit?

a)

Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need

b)

Countries can take advantage of each other making the international market more secure

c)

Countries are able to learn the weaknesses of other countries and exploit those for natural resources

d)

Countries are able to enter other countries with spies and foreign agents to undermine governments.

21.

"Stock" is best defined as ___________.

a)

a share of ownership in a corporation

b)

an investment in which a person lends money to a business at a specified interest rate

c)

the right to receive money from the government on a future date

d)

a share of ownership in the government-owned enterprise

22.
The possibility of losing some or all of a particiular investment.
a)
risk
b)
index
c)
industry
d)
profit
23.
What is the stock market?
a)
A type of farmers market where people buy and sell food.
b)
A place where parts of businesses are bought and sold.
c)
A special type of grocery store that sells stocks.
d)
A type of bank that gives out loans to new businesses.
24.
You should start saving for retirement
a)
When you get married
b)
When you get your first job
c)
When you reach age 50
d)
When you reach age 65
25.

Which of the below is an employer based retirement plan that only employers contribute to?

a)

Traditional IRA

b)

Roth IRA

c)

401K

d)

Pension

26.

Which of the below is an employer based retirement plan that both employees and employers contribute to?

a)

Traditional IRA

b)

Roth IRA

c)

401K

d)

Pension

27.

Our tax money is spent on all of the following EXCEPT:

a)

Social Security

b)

The Military

c)

Private School Education

d)

National Parks

28.

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

a)

True

b)

False

29.

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

30.
FICA taxes are
a)
U.S. federal payroll taxes imposed on both employees and employers to fund Social Security and Medicare
b)
U.S. federal payroll taxes imposed on employees only to fund Social Security and Medicare.
c)
U.S. federal payroll taxes imposed on both employees and employers to fund Social Security.
d)
U.S. federal payroll taxes imposed on employers only to fund Social Security and Medicare
31.

A bank is...

a)

a business that keep money for customers and makes loans.

b)

a company that uses your money for bartering.

c)

an organization that holds money and other valuable assets.

d)

a business that borrows money from you.

32.
Which of the following statements is true about Debt? 
a)
Debt is the amount of money you have in your checking account.
b)
Debt is the amount of money you have borrowed from a person or a business.
c)
Debt is the ability to borrow money.
d)
Debt is the amount of money you have in a savings account. 
33.

A fee a bank, credit card, or lender charges to purchase something & pay for it over time

a)

Dividend

b)

Interest

c)

Credit

d)

Finance Rate

34.

What is the first step to get out of debt?

a)

sell something to get the money

b)

get a part time job and work extra

c)

Save money to pay it back

d)

Quit borrowing more money

35.

This is declared when an individual is unable to pay private or business debts.

a)

Broke

b)

Bankruptcy

c)

Insolvency

d)

Liquidation