WorksheetsEconomics Final Exam
Total questions: 40
Worksheet time: 7mins
Scarcity makes businesses think about certain factors, those factors are ________, __________, and ___________.
Gross, Wealth, Gain
Utility, Service, Good
What to produce, How to produce, For whom to produce
Want, Need, Value
(a) is the social science dealing with how people satisfy seemingly unlimited and competing needs and wants with the careful use of scarce resources.
What are the four factors of production?
Land, labor, capital, and entrepreneurs.
Pay, benefits, care, and services.
Travel, vendors, popularity, and market.
Visual, logical, physical, and dimensional.
What would happen if one of the factors of production were missing?
(a)
What are the consumer rights?
Right to vote, right to speak, and right to leave
Right to use, right to work, and right to change
Right to fight, right to learn possibilities, and right to identify
Right to safety, right to be informed, and right to choose
The term labor means all the abilities and skills of people in a society.
True
False
What role does specialization play on the productivity of an economy?
Improves productivity
Improves market
Improves interdependence
Improves capital
How does cost benefit analysis help make economic decisions?
Useful if you are unsure of the exact amount of an activity you want to experience.
It’s a way of comparing the benefits of an action to the expected costs.
Improves efficiency, productivity, of the factors of production results in market growth.
It will help you make better economic choices.
Car: Goods or Services?
Good
Service
Doctor: Goods or Services?
Good
Service
In a society with a (a) , the use of scarce resources-and nearly all other economic activity-stems from ritual, habit, or custom.
What is capitalism?
An economic system in which private citizens own and use the factors of production for their own profit or gain.
An organized way a society provides for the wants and needs of its people.
Economic system characterized by a central authority that makes most of the major economic decisions.
An economic system in which supply, demand, and the price system help people allocate resources.
In a mixed economy, what would you most likely see happen?
People would rely on the government to provide more timber.
Entrepreneurs would offer timer at high prices.
The government would redistribute timber from those who have a lot to those who don’t have any.
Timber would have to be imported from different countries and sold by government at high prices.
The Great Depression was the worst period of economic decline in U.S. history, lasting from approximately 1929 to 1939
True
False
Who are the people that benefit from the structure of a mixed economy?
Can benefit the government and also the people within a high income percentage.
Can benefit the entrepreneurs and also the consumers.
Can benefit both the government and people who are in need of assistance, such as the elderly and the sick.
Can benefit those that are sick and those that are in the higher income percentage.
What are the main problems for a nation transitioning to capitalism?
State-owned properties must be privatized, people must adjust to a different set of incentives.
Comprehensive, centralized economic plan used by the Soviet Union and China to coordinate development of agriculture and industry.
National policy of avoiding international alliances and economic interactions.
Requiring large amounts of capital in relation to labor.
Free enterprise is an economic system in which privately owned businesses have the freedom to operate for a profit with limited government intervention.
True
False
Voluntary Exchange is when buyers and sellers freely and willingly engaging in market transactions; a characteristic of capitalism and free enterprise
True
False
The Great Recession was a severe economic downturn that lasted from late 1980’s through mid-1990.
True
False
(a) tendencies can result in the suppliers combining efforts to avoid results in consumers having fewer purchasing and cost options.
What part of the economic spectrum would you find North Korea?
On the left
In the middle
On the right
It’s traditional so it’s not on the spectrum
What part of the economic spectrum would you find the United States?
On the left
In the middle
On the right
It’s traditional so it’s not on the spectrum
It’s possible for communism to exist in a democracy.
True
False
How might a producer of bicycles adjust the quantity supplied when prices decrease?
Fewer products would be offered for sale at all possible prices, and so the supply curve would shift to the left.
Price rises, the producer may offer more bicycles for sale to take advantage of the better prices.
Only the amount of output offered for sale along an original supply curve is affected by the change in price.
Might make a change in quantity supplied and offer fewer bicycles for sale.
What is the government payment to encourage or protect a certain economic activity?
Hypothetical
Long run
Subsidy
Supply curve
When does marginal product equal total product?
With the first worker.
With product.
With hiring new workers.
With the firm.
What is a simple definition of supply?
Price increases - supply increase
Stocking of shelves
The thought of choice between items
When supply goes up demand goes up.
What is a simple definition of demand?
Price increases means demand will decrease
The power of a product for sales
When there is not enough stock
Simply put a shortage.
What is a monopoly?
A business that does not allow competition.
A business that encourages competition.
When supply exceeds demand.
A risky investment.
Which of the following is NOT a characteristic of a market economy?
Private property rights
Limited government
Competition and consumer sovereignty
Involuntary exchange
Occurs when consumers react to a change in the price of a good or service by buying a substitute product.
Income effect
Law of diminishing marginal utility
Demand
Substitution effect
What is the quantity of output supplied that is equal to the quantity demanded at the equilibrium price?
Equilibrium price
Equilibrium quantity
Equilibrium wage rate
Equilibrium
How does the elasticity of a product affect changes in its price?
Elasticity limits the changes in prices that occur for a good when it’s supply or demand fluctuates.
When the system of allocating goods and services without prices.
The adjustment process is painful for many individuals and companies, it is a natural and necessary shift of resources for a market economy.
Competition among buyers helps prevent prices from falling too far; this means that both consumers and producers have a role in determining the market’s equilibrium price.
Which of the following reflects an important connection recognized by Adam Smith?
If you can exchange only with those in a small village, your ability to specialize productively is extremely limited.
The bigger the market, the more limited the productive potential of specialization is
specialization of labor encourages people to become a jack-of-all-trades
more exchanges happen in a limited market
Karl Marx's labor theory of value proposes that
the economic value is subjective, its value is in the eye of the beholder
scarcity always increases economic value
the economic value of a commodity is comprised of the labor that went into making it
All of the above
A cease and desist order is a ruling requiring a company to stop an unfair business practice that reduces or limits competition.
True
False
We use the term (a) to indicate that we recognize that ours is not a pure free enterprise system, because the government does have a limited role to play in the economy.
