WorksheetsEconomics Final Exam - Fall 2021
Total questions: 53
Worksheet time: 3hrs 39mins
Manufactured goods needed to produce other goods and services are called
nondurable goods
Gross Domestic Product (GDP)
capital goods
consumer goods
To arrive at an economic decision, a decision-making grid may be used to evaluate
productivity
alternative choices of action
only durable goods
only capital goods
Study the graph. Suppose this nation starts with producing all military goods. It then decides to produce a mix of civilian and military goods represented by point B. What represents the cost in military goods given up?
the vertical distance between point X and point Y
the horizontal distance between point Y and point Z
the horizontal distance between point Z and point E
the vertical distance from point A to point X
In this production possibilities frontier, what could cause production to move from point "A" to point "E"?
factories that are available but idle
the availability of additional resources
increased productivity
economic growth
Which of the following choices best describes what this production possibilities frontier is depicting?
alternative possibilities
cost of idle resources
opportunity cost
economic growth
What factor of production do these images illustrate?
Labor
Capital
Land
Entrepreneurship
Unlike a general partnership, in a limited partnership
all partners share equal financial responsibility for the firm's decisions
the inactive partner has limited liability for the business's debts
the partners must pay special business taxes
the business does not end with the death of a partner
A merger of corporations involved in different steps of manufacturing or marketing is known as a
Multinational merger
Vertical merger
Horizontal merger
Conglomerate
An advantage of a corporation is that
owners pay fewer taxes than owners of other forms of business
the business is subject to little government regulation
owners have limited liability for debt
owners have direct and immediate control over daily management of the business
What form of business organization does this organizational chart depict?
partnership
corporation
sole proprietorship
joint venture
The money that households spend would best be represented from ____ to ___
Households to Factor Market
Households to Product Market
Product Market to Households
Businesses to Product Market
Economics
the study of how to meet unlimited, competing wants with limited resources
the study of how people need to budget their money
the study of people and how they spend their money
the study of how to meet limited wants with limited resources
A popular model used to illustrate the concept of opportunity cost is
Productions Possibilities Frontier
Paradox of Value
Entrepreneurship
Factors of Production
The purpose of government in a command economy is to
ensure the availability of consumer goods
encourage entrepreneurs
make major economic decisions
promote economic freedom
The concept of voluntary exchange means
that no money was exchanged
people freely and willingly engage in market transactions
only workers will benefit from the exchange
neither buyers nor sellers make a profit
Which letter represents the proper location on the diagram for “unlimited liability”?
T
V
W
Y
What type of merger does the illustration depict?
horizontal merger
diagonal merger
vertical merger
conglomerate
While many grocery stores offer BOGOs (Buy 1 Get 1) specials, the reality is that both items have a cost. What economic term explains this principle?
scarcity
specialization
capital
TINSTAAFL
The means by which a society answers the three basic economic questions is known as
Production analysis
Scale
Economic systems
Group economics
What do business organizations receive from the Product Market in the Circular Flow of Economic Activity
Good & Services
Revenue
Wages
Factors of Production
If you were to graph this demand schedule, the demand curve would
Slope upward from left to right
Be horizontal
Slope downward from left to right
Be vertical
Study the illustration. At a price of $25, how much more of the product is demanded on curve D'D' than on curve DD?
2 units
3 units
1 unit
4 units
Based on the table, what is the market demand for burritos at a price of $5?
2
3
6
8
An increase in the price of milk causes a decrease in the demand for cereal. The two products are
Substitute goods
Complement goods
Unrelated goods
Demand Elastic
A demand schedule shows
An upward-sloping curve that illustrates the positive relationship between price and quantity demanded
A listing of the various quantities demanded of a particular product at all prices that might prevail in the market
The fluctuations in demand that occurred over a specified period of time
The fluctuations in demand scheduled to occur over the following year
Which of the following will cause the market supply curve to shift?
A change in the price of the product
A change in the number of consumers
A change in the numbers of sellers offering the product
A change in demand for the product
According to this supply curve, 400 movie videos will be supplied at what price?
$10
$12
$14
$16
What does the movement shown on this graph represent?
A change in supply
A change in quantity supplied
The law of diminishing returns
A shift in the market supply curve
Which of the following choices could cause the movement shown in the graph?
technology improves
production
inputs become cheaper
the number of firms
increases
taxes increase
Assume that ABC Corp. and XYZ Corp. are the only two firms that supply soccer balls. Based on the graphs, what would be the market quantity of soccer balls supplied at a price of $20?
3
6
9
10
At a given price, a surplus occurs when
the quantity demanded is more than the quantity supplied
the quantity demanded is the same as the quantity supplied
the quantity supplied is less than the quantity demanded
the quantity supplied is greater than the quantity demanded
In the table, market equilibrium will occur at what price?
$20
$16
$14
$10
Suppose the demand curve shifts from D1 to D2, as shown on the graph. How do the quantity supplied and quantity demanded change at the new equilibrium price?
Quantity supplied increases and quantity demanded decreases
Quantity supplied decreases and quantity demanded increases
Both quantity supplied and quantity demanded increase
Both quantity supplied and quantity demanded decrease
Output-Expenditure Model
GDP = Consumer C + Investment I + ? + Exports & Imports (X-M)
Demand - D
Taxes - T
Product - P
Government - G
The largest sector of the macroeconomy is the
investment sector
government sector
foreign sector
consumer sector
A U.S. business buys new computers for its office workers from a U.S. computer manufacturer. The value of the transaction would be included in which category in the graph?
Consumer sector
Investment sector
Government sector
Net Exports
Unemployment that is directly related to swings in the business cycle is
frictional
unemployment
structural
unemployment
cyclical
unemployment
seasonal
unemployment
A statistical series used to measure price changes for a representative sample of frequently used household items is called the
producer price index
composite index of leading economic indicators
consumer price index
implicit GDP price deflator
Changes in technology and changes in consumer tastes can cause
frictional unemployment
structural unemployment
cyclical unemployment
seasonal unemployment
Based on the table, in which category could consumers buy more with their money in 2001 than they could in 1999?
Food
Clothing
Housing
Medical
Which letter on the graph represents a contraction in the business cycle?
W
X
Y
Z
Which letter on the graph represents a trough in the business cycle?
W
X
Y
Z
Tariffs and quotas are designed to
promote third-world development
decrease prices consumers pay for goods
protect domestic industry
increase trade deficits
The North American Free Trade Agreement proposed free trade between the United States and
Central American
countries
Brazil and Mexico
the European Union
Canada and Mexico
Based on the data in the illustration, for which product or products (if either) would the U.S. have an absolute advantage?
walnuts
computers
both walnuts and computers
neither walnuts nor computers
A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (money to assist an industry so prices can remain low).
Free Trade
Trade War
Goods and Services
Supply and Demand
What is an exchange rate?
The rate at which goods are exchanged between two countries
The price of one nation's currency in terms of another's
How many US dollars you can exchange for RMB at Travelex
The price of goods in terms of a foreign currency
If the US $ were to appreciate in relation to the Euro, what effect would this have?
European consumers would have more purchasing power in US
US consumers can buy more European goods and services for fewer $$
US consumers can buy more English goods and services for fewer $$
European tourists to the US will spend more $$
A monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is a
geographic monopoly
government monopoly
natural monopoly
technological monopoly
What letter on the graph represents the proper location for the market structure “oligopoly”?
W
Y
X
Z
According to the table, what is the USD equivalent of 1 Australian?
0.97 USD
1.32 USD
1.28 USD
1.03 USD
