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Worksheetseconomics 1st 9 weeks exam
Total questions: 96
Worksheet time: 1hrs 4mins
__________study of how people (including companies/countries) make choices on buying, selling, using, and distributing goods/services.
A. Economics
B. Consumer Science
C. Opportunity Costs
__________ Things required to live such as food, shelter, clothing, air
A. Need
B. Want
C. Tradeoff
____________ The actual thing you gave up to have something else. Everything has a cost
A. Opportunity Cost
B. Tradeoff
C. Incentive
_____________ anything that it used to make a good or service.
A. Resources
B. Good
C. Service
_____________ network of institutions, markets, and contracts that bring lenders and borrowers together
A. Financial system
B. banks
C. Private Enterprise
_______________ father of economics, wrote the wealth of nations, and believed in a concept known as the invisible hand.
A. Adam Smith
B. David Ricardo
C. Thomas Malthus
____________ supply & demand determines what gets produced
A. Free Market Economy
B. Closed Economy
C. Socialism
_____________________ study of production, employment, prices, and policies (will unemployment rise if there is an increase in taxes)
Macroeconomics
Microeconomics
Opportunity Cost
______________ not having enough resources to satisfy all of the needs/wants
Scarcity
Opportunity Cost
Tradeoff
_____________ not enough of something that people want
Scarcity
Opportunity Cost
Tradeoff
Scarcity forces people to_____________________
Make Choices
satisfy all their wants and needs
Give up opportunity cost
What is the difference between a shortage and scarcity?
A shortage is temporary but scarcity always exists
A shortage results from rising prices; scarcity results from falling prices
A shortage is lack of all goods and services; scarcity concerns a single item
There is no real difference between a shortage and scarcity
Economics is the study of how people seek to satisfy their needs and wants by making choices.
True
False
Individuals who come up with a new idea for a good or service, then they make it a reality
resource
human resources
consumer
entrepreneur
Which of the following is a need?
Ice cream
Houses
Basketballs
Candy!!! (I want candy)
What is the fundamental problem of every society?
labor costs
scarcity
economic interdependence
market fluctuation
What are the 3 economic questions?
What to produce? How To Produce? For whom to produce?
Who to produce? Why you produce? Like to produce?
Why to produce? Tell who to produce? Things to produce?
What to produce? How to produce? When to produce?
The Gross National Product (GNP) is
I'm not sure Mr. Szymkowiak. I need to study this concept more!
all of the goods and services produced annually in a nation OR the market value of goods and services by all citizens of a country- both domestically and abroad
a type of food
the measure of total quality of economic life in a nation in 1 year
What choice below describes the following definition: the theory of social science that deals with issues such as money, banking, wealth, resources, interest rates, inflation, unemployment, business cycles, investing, etc.
Economics
Life!
I'm not sure, Mr. S.! Can you help me out?
KFC
All of the following are factors of production except
Land
Money
Labor
Chicken
Which is an example of a renewable resource?
Timber
Windpower
Water
All of the above
Please complete the following sentence: ____ are people whose efforts and skills go into the production of goods and services.
Labor
Markets
Economics
Resources
What are the four types of resources? Choose all that apply?
Land
Labor
Capital
Entrepreneurship.
When we make a choice the option we give up is the ______________________________.
Scarcity
Opportunity Cost
Capital
Entrepreneurship
What is the Law of Supply?
Producers (businesses) will offer more for sale at higher prices.
The producer that can produce the most output OR requires the least amount of inputs (resources).
There is more supply than demand.
Limit the amount of a product to keep prices on imports high to protect domestic producers.
What is equilibrium price?
the lowest legal price – creates a surplus
the highest legal price – creates a shortage
designed to make money for the government.
the price at which supply meets demand
What does it mean when there is a shortage?
there is more demand than supply
there is more supply than demand
Our supply of natural resources is finite.
Spending all of your money on that new iPhone and not having enough left over to get groceries.
What is a price ceiling?
the lowest legal price – creates a surplus
the highest legal price – creates a shortage
The lowest customers are willing to pay for a product.
The highest price customers are willing to pay for a product.
What is demand?
I need to pay the bills... but Imma go to Disneyland instead.
The value, or worth, that we place on a product.
the amount of something that producers will offer for sale at all prices.
the desire, ability, and willingness to buy a product
What is a revenue tariff?
Intended to make imported goods more expensive than domestic goods.
A tax on imported tea that makes me want to dump it into the harbor.
Designed to make money for the government.
Limit the amount of a product to keep prices on imports high to protect domestic producers.
Foreign Exchange
The buying and selling of the currencies of different nations.
Another name for international trade.
A program in which students can study in other countries.
The process of exporting goods to other countries.
What is supply?
The amount of money you are willing to supply to get that new iPhone.
Illustrates how the quantity that a person will demand varies depending on the price of a good or service
The amount of resources available to make a product.
The amount of something that producers will offer for sale at all prices.
Define price floor.
The highest legal price – creates a shortage
The lowest legal price – creates a surplus.
The lowest price people are willing to pay for an item.
The lowest price producers are willing to set for an item.
What is surplus?
There is more demand than supply.
The quantity demanded of a good or service varies inversely with its price.
Occurs when companies create false scarcity to sell an item.
There is more supply than demand.
Describe the Law of Demand.
The quantity demanded of a good or service varies inversely with its price.
Producers (businesses) will offer more for sale at higher prices.
"If you build it, they will come."
The more producers charge for an item, the higher demand will be.
Which statement reflects the inverse relationship between quantity demanded and price?
As the price goes up, quantity demanded goes up.
As the price goes down, quantity demanded goes up.
As the supply goes up, the price goes up.
As the supply goes up, the demand goes up.
According to the substitution effect, if two items satisfy the same need and the price of one rises,
people will buy more of the higher-priced item.
people will buy more of the lower-priced item.
the demand will go up.
people will buy something else.
Which economic rule states that the additional satisfaction people get from consuming one more unit of a product will lessen with each additional unit they consume?
real income effect
law of diminishing marginal utility
law of demand
substitution effect
The amount of goods and services people can actually buy is their
voluntary exchange.
purchasing power.
utility.
substitution effect.
How does an increase in consumer population affect the demand for most products?
demand decreases
prices go down
demand increases
prices go up
A shift to the left in the demand curve indicates a(n)
decrease in price.
decrease in demand.
increase in population.
increase in demand.
If two products are complementary goods, how will a decrease in the price of one affect the other?
demand will increase
price will increase
demand will decrease
price will decrease
Prices on goods and services are determined
only by demand.
only by supply.
by both demand and supply.
neither by demand nor supply.
In which economic system is the protection of private property rights essential?
Command
Traditional
Market
Socialism
Which of the following best explains a mixed economy?
Private ownership of the factors of production and regulation of businesses by government
Market exchanges answer all three of the big economic questions
Family customs and traditions determine what and how to produce a good
Government answers all three of the big economic questions
When all aspects of the economy are determined by a central governmental figure
Why someone chooses to buy one product over another is studying in
Microeconomics
Macro economics
Business relations
The gross national product of a country would be studied in:
Microeconomics
Macro economics
Business relations
Which famous book did Adam Smith write?
Wealth of Nations
Communist Manifesto
Green Eggs and Ham
The Bible
What did Adam Smith say was a force that guided the economy?
The Invisible Man
The Invisible Ham
The Invisible Hand
The invisible Force
The amount of a good available in a market is ______________.
Supply
Demand
Value
Equilibrium
A ____________ is if the supply of something is high but the demand is low then the price drops.
Surplus
Shortage
If the supply of something is low but the demand is high then the price rises is known as a ___________________
Surplus
Shortage
Based on this graph, what was the OLD equilibrium price?
$2.25
$2.50
$3.00
$3.25
Based on this graph, what is the NEW equilibrium price?
$2.25
$2.50
$3.00
$3.25
Based on this graph, what is the NEW equilibrium Supply of gasoline?
30 million
35 million
45 million
40 million
Based on this graph, which way did the demand shift?
Right
Left
Up
Down
Adam Smith was Known as the _______________
First Economist
Inventor of Communism
Theorist of divisions of labor
The first official pope of the Irish
___________________ is the study of how consumers, workers, and firms interact to generate outcomes in specific markets.
Macroeconomics
Microeconomics
Economics
Equilibrium
A state in a market where supply and demand are equal is known as a(n) ___________________.
Scarcity
Shortage
Equilibrium
Surplus
Under perfect competition,
products are similar but not identical.
numerous restrictions prevent firms from entering the market.
no seller can sell a product above the prevailing market price and products are identical
a single seller can affect price and their is a small number of buyers and sellers
A barrier to entry into a market is known as
an economic term for economies of scale
illegal in most markets
anything that prevents new firms from entering the market
a factor that increases competition
Sony gets new technology that will allow more PlayStation 5s to be produced each hour. How will this affect the supply of PS5s?
No shift in the supply curve, it is a price change
The government places strict regulations on fracking (a way of drilling for oil) to prevent oil spills and other problems that can harm the environment. How will this affect the supply of oil?
No shift in the supply curve, it is a price change
Mattel (a toy maker) expects the new Barbie to be the “IT” toy at Christmas. How will this affect the supply of Barbie Dolls?
No shift in the supply curve, it is a price change
A terrible blizzard destroys the herds of most ranchers in the western U.S. How will this affect the supply of beef?
No shift in the supply curve, it is a price change
An increase in Demand is located by moving from point ________ to point_________
Moving from A to B
Moving from A to C
Moving from C to A
Moving from B to A
Consider the market for cellular phones. Which of the following shifts the demand curve to the left?
studies showing using cellular phones can cause brain cancer
a decrease in the price of cellular phones
a decrease in the quantity demanded of cellular phones
an increase in the services provided by cellular phones, such as text messaging
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
The graph represents which concept of demand
Change in Price
Decrease in Demand
Change in Quantity Demand (Slide)
Change in Demand (Shift)
