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WorksheetsEcon 2
Total questions: 54
Worksheet time: 45mins
Which statement best explains why nations must trade?
All nations belong to free trade agreements.
All nations seek out new production methods.
No nation has all necessary resources.
No nation can employ all of its laborers.
Countries will export goods and services that they can produce at lower costs. This is called —
oligarchy
monopoly
comparative advantage
capitalism
Why do all societies have to make decisions about how resources will be used?
People are greedy
There are not enough resources for those who want them
Resources are too expensive for most people
Because there is a huge gap between the rich and poor
The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity
absolute advantage
specialty
production
comparative advantage
__________________ __________________ is what a country is good at producing, or its ability to produce a product more efficiently than other products.
Comparative advantage
trade barrier
free trade
developed country
___________ ____________ involves exports and imports.
Ceteris Paribus
Opportunity Cost
Supply and Demand
International trade
A __________ is a tax on imports or exports.
tariff
trade
development
productivity
______ ______is the removal of trade barriers.
Developing country
comparative advantage
Trade barrier
Free trade
Gross domestic product (GDP) is the ...
total value of all goods and services produced in a country in a year.
tax on imports and exports.
A pool of money collected from many investors, and used to buy stocks, bonds, and other securities.
stock
mutual fund
bond
goals
Saving and investing provide opportunities to increase your wealth, leading to financial security
True
False
The Dow Jones Industrial Average is followed by investors to tell them
the general health of the stock market
how the Dow Chemical stock is performing
whether they should diversify their portfolios
What determines the prices of goods and services?
Supply
Demand
Supply and demand
Goods
What exists when the supply is greater than demand?
Surplus
Shortage
Overflow
Mass outrage
A market is said to be in equilibrium when
when demand is higher than the supply
when demand is lower than the supply
when the demand and supply quantities are equal
when the supply is doubled the demand
Kanye West's new shoe the Yeezy Boost sold out in stores. This is an example of...
shortage
surplus
equilibrium
supply
What happens to price when the market has a surplus
price drops
price stays the same
price increases
price triples
Defined as: to bring in a product or service from another country.
imports
goods
services
exports
Defined as: a tax on goods coming into or leaving a country
tariff
good
quota
embargo
Defined as: the act, process or business of buying, selling or exchanging goods and services
embargo
trade
tariff
quota
If demand for a product increases beyond the ability of producers to supply the product, what will happen to the price of the product?
the price will increase
the price will decrease
the prices will stay the same
the price will decrease until producers can make more
Why would a country impose a tariff or restrict how many foreign goods can enter a country?
Goods are __________________________________.
places where you can buy stuff.
a physical item that can be purchased.
the way I am supposed to behave.
an activity, such as banking or car repair, that people pay for.
A doctor treating his patient.
This is an example of a ___________________.
service
good
The three main factors of production are:
school, work, and retirement
land, labor, and capital
economy, specialization, and trade
goods, services, and people
Specialization focuses on producing______________.
a variety of activities or products.
one particular kind of activity or product.
Interest that is paid on interest that you have already earned
Deposit
Compound Interest
Investment strategy
Frugal
A fee charged for borrowing money
Stock
Interest
Taxes
Dues
Shares representing ownership of part of company
Colateral
Stock
Compound Interest
Revenue
Which factor of production does this picture represent?
Land
Labor
Capital
Entrepreneurship
Which factor of production does this picture represent?
Land
Labor
Capital
Entrepreneurship
Which factor of production does this picture represent?
Land
Labor
Capital
Entrepreneurship
Which factor of production does this picture represent?
Land
Labor
Capital
Entrepreneurship
The factors of production are capital, land, and schooling.
True
False
The "invisible hand" in a free market is when businesses meet societies needs when they meet their own self interests.
True
False
The idea that jobs must be lost for an economy to grow.
Specialization
Opportunity Cost
Creative Destruction
Gross Domestic Product
The idea that no person needs to guide or direct the market. Instead, people will naturally meet the wants and needs of others.
Specialization
Comparative Advantage
Invisible Hand
Protectionism
In a Market Economy, how is price determined?
Prices are set by the Government.
Price is determined by the buyers and sellers who participate in the economy.
Prices are determined by how much money people make.
Prices are set by the seller to make an overwhelming profit.
Which of the following statements BEST describes investing?
Putting $100 a month into a bank account for short-term goals
Selling your resources so you can satisfy you wants and needs today
Reducing the how much your money can buy over time
Buying assets, like stocks, with the intention to hold them and grow your wealth over the long term
Which of the following statements is true about specialization and trade?
A country should not trade if they can make things better than other countries
Specialization and trade tend to hurt countries
Countries should specialize in many things, and only trade if they don't have the resources to make something
Countries should specialize in things that they are best at, and trade for things they are not efficient at making
Joaquin Duato, the CEO of Johnson and Johnson, made a salary of about $13.4 million in 2022. Which BEST explains why?
He is one of the most intelligent people in the world
He has surrounded himself with an incredibly talented team
The demand for his skills are low, and the supply high
The demand for his skills are high, and the supply low
Since 2000, companies like JCPenney, Barnes & Noble, K-Mart, and Blockbuster have declined or gone out of business. Companies like Amazon, Apple, Caterpillar, and Pfizer have grown and become very successful. What is this process called?
Comparative Advantage
Creative Destruction
Mutual Fund
Innovation
Type of economy where the government has unlimited power and controls the economy.
Communism
Capitalism
Free Trade
Mercantilism
