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WorksheetsEconomics Final Exam 21-22
Total questions: 84
Worksheet time: 42mins
The study of how individuals, institutions, and society make choices under the conditions of scarcity is
allocation.
deregulation.
economics.
specialization.
Which of these would BEST satisfy a human need?
automobile
bread
iPod
newspaper
David wants to buy a pizza and go to the movies. However, he only has enough money to do one or the other. In order to decide what to spend his limited money on, what must David do?
visit a bank
apply for interest
hire a financial adviser
engage in a rational decision making process
An opportunity cost is
usually absent in a command economy.
when goods are recycled into other goods.
the next-best alternative you give up in order to do something else.
is only an issue when there is not a scarcity of goods and resources.
Many students choose to enter the military before attending college. What would be the opportunity cost of that choice?
age and experience
a chance to see the world
an opportunity to fight for one's country
getting an advanced degree
Which correctly identifies a NEED as opposed to a want or desire?
I need a new pair of jeans.
John really needs a haircut!
We all need a certain amount of water.
Kira needs to call her mom to come get her.
Economics is
divided into household and global economics.
a social science which studies how resources are used.
primarily concerned with international competitiveness.
a social science that studies how the government can best regulate the economy.
Which of these would be an opportunity cost of going to college?
the cost of housing and food
the cost of books and tuition
the degree and the money you will earn
the money you could have earned at a job
Which of these would be an opportunity cost of going to college?
the cost of housing and food
the cost of books and tuition
the degree and the money you will earn
the money you could have earned at a job
A friend offers you a Coke, a Dr. Pepper, or a Sprite. You don't like Coke, so after some thought, you take the Dr. Pepper. What is the opportunity cost of your choice?
the coke
the Sprite
the Dr. Pepper
Nothing, because the drink was free
Benjamin has saved $40.00 for concert tickets, but decides to buy a new pair of jeans instead. In this scenario, what do the concert tickets MOST LIKELY represent?
capital
scarcity
opportunity cost
decreased demand
The tools, skills, knowledge, and machines created and used by humans is known as
Business
Capital
Land
Money
Workers on an assembly line are an example of
allocation.
entrepreneurs.
homogenization.
specialization.
Which term would be used to describe the wood that is used when building a house?
capital
labor
land
enterpreneurship
Which (2) factors of production would be considered a capital resource?
factory
delivery truck
food truck owner
blue collar workers
In market economies, individuals have a high degree of economic freedom. Which statement describes a cost associated with economic freedom?
The government determines how economic questions are answered.
Consumers have the right to choose which products they buy.
An entrepreneur risks failure.
Markets sets prices of goods.
Most teenagers desire the newest and most up-to-date smartphone on the market. When the new phone comes onto the market, the new phone's price is significantly higher and the price of the older version of the same phone will drop noticeably.
What is the incentive to produce newer versions of smartphones for cell phone companies?
the risk of losing money in creatine the newest version
the chance at high profits in selling the newest version
the risk of competition from both versions of the smartphone
there is no incentive from the production side of the economy
All of these are examples of
speeding ticket
littering fine
library fine
detention
productive resources.
negative incentives.
positive incentives
opportunity costs.
What is a negative economic incentive?
coupons
free time
speeding ticket
extra study time
What are incentives?
the cost of decisions
the consequences of negative actions
motivators or reasons for doing something
the value in dollars of goods or services
Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept?
scarcity
law of demand
positive incentive
negative incentive
How does price serve as an incentive in a market economy?
Buyers demand more at higher prices.
Buyers purchase less at lower prices.
Buyers purchase more at lower prices.
Buyers purchase more at higher prices.
What would be a negative incentive, encouraging a person NOT to do a particular behavior?
$100 fine for littering
"Please do not Litter" sign
"Please Pick up all Trash" sign
rewarding people for picking up trash
How do private property rights encourage individuals to work, save, and invest?
Individuals can keep the gains they earn.
Most investments are guaranteed by the government.
Most earnings of individuals will go to the government.
Any earnings or wealth cannot be passed on through inheritance.
According to the American Lung Association, for every ten percent increase in the price of a pack of cigarettes, youth smoking rates drop about seven percent. If lawmakers want to create a negative incentive for smoking, this information would support what action?
Increase excise taxes on cigarettes.
Decreased excise taxes for cigarettes.
Lower the legal age to purchase tobacco products.
Remove the surgeon general warning labels from cigarette packaging.
The town of Matildaville is attempting to reduce the amount of litter on the side of the roads. Which proposed program would be a negative incentive?
free food for cleaning up
money for keeping your road clean
$200 fine for each piece of litter
concert tickets for a clean up day
What is the opportunity cost of saving money to purchase a car?
the cost of working hard to save money
the money you could have earned at a job
the money could be used to go on vacation
the cost of insurance, gas, and maintenance
Earnings of workers are typically decreased by all of these EXCEPT
falling value of the goods produced.
a smaller profit margin of the company.
a shrinking supply of available workers.
a lower efficiency of the production process.
If consumers are willing to pay more for a product, the makers of that product will likely make more of it. This is known as
a Price Floor.
the Law of Supply.
the Law of Demand.
Equilibrium Price.
Which relationship is the BEST example of the Law of Supply?
The quantity of a good supplied rises as the price rises.
The quantity of a good supplied rises as the price falls.
The quantity of a good supplied falls as the price rises.
The quantity of a good supplied is not impacted by price.
Oldtown has only two grocery stores, but that is about to change. Coming this fall, two new grocery store chains are opening that focus on offering a wide variety at low prices. What impact will this have on the people of Oldtown?
At least one of the grocery stores will go out of business due to increased costs.
The local government should increase taxes on groceries to help pay for new infrastructure.
The supply of groceries in Oldtown will increase, but demand will decrease, leading to a shortage in basic necessities.
This would increase competition among the grocery stores, which should lead to higher productivity and lower prices for consumers.
How is a low price an incentive to a consumer?
Low prices serve as incentive to buy more.
Low prices are incentive to consumers to buy less.
Low prices are incentive to producers to sell more.
Low prices are incentive for producers to stop selling.
According to the theory of rational expectations, what will happen if a consumer wants to purchase a new car but believes that the price of the car will drop in two months?
The consumer will purchase the car now anyway.
The consumer will ask to pay less for the car now.
The consumer will decide not to buy the car after all.
The consumer will until the price of the car is lower.
What is the role of consumers in determining what is produced in a market economy?
Consumers work in the production of goods.
Consumers set the prices for goods in the market.
Consumers use their buying power to determine goods produced.
Consumers act as the sole determinant of what products are supplied.
What is the BEST explanation as to why the price of gasoline increases during the summer months?
Oil producers have higher costs of labor production in the summer months.
There is increased driving caused by people going on vacation during the summer.
Sellers have to earn profits during the summer months to cover losses in the winter season.
The number of gas stations open 24 hours a day rises with the longer daylight during summer.
Income
Consumer Expectations
Population
Consumer Tastes
Complements and Substitutes
These would change what part of the market?
Supply
Demand
Law of Supply
Law of Demand
If a new machine was developed that picked coffee beans twice as fast as is currently possible, what would you expect to happen to the price of coffee?
The price would increase to pay for the new machinery.
The price would decrease because there would be more coffee available.
The price would increase due to greater demand for coffee picked this way.
The price would decrease because fewer would want coffee picked by machine.
In the labor market, the supply curve represents
the workers and the demand curve represents the product of the labor.
the supply of workers, and the demand curve is the demand for their labor.
the firms in the labor market and the demand curve is the labor seeking work.
the supply of product produced by labor and the demand curve the consumer demand.
In Manhattan, where living space is in short supply, the city has enacted rent control, which limits the amount landlords can charge for rent. As a result,
the supply of apartments in rent-controlled areas usually grows slowly.
the demand for apartments in rent-controlled areas far outstrips the supply.
the free market dictates the levels of rent which tenants are willing to pay.
the landlords are never sure if they will be able to find tenants to rent their apartments.
The new oven in Mr. Brown's bakery allows him to produce bread more efficiently and more cheaply. What is the MOST LIKELY effect for consumers?
the price drops and the quantity demanded decreases
the price rises and the quantity demanded decreases
the price drops and the quantity demanded increases
the price rises and the quantity demanded increases
During Halloween, candy makers accurately anticipate the increased demand for candy for all of the parties and Trick-or-Treat. Manufacturers work hard to make sure the supply of candy and the demand for candy increase the same amount.
As a result of Halloween and the careful planning of manufacturers of candy, the price of candy _____ and the quantity of candy _____.
falls; decreases
rises; increases
does not change; increases
increases; does not change
A volcano erupts in Hawaii that destroys or severely damages many of the pineapple orchards located there. What will be the effect on price and quantity of pineapples sold?
price will fall and quantity will fall
price will fall and quantity will rise
price will rise and quantity will fall
price will rise and quantity will also rise
The Law of Supply states that
the supply of a product is not affected by its price.
when the supply of a product decreases, the price of the product falls.
when the supply of a product increases, the price of the product rises.
the quantity supplied of a product will increase when the price of that product increases.
Which is the curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price?
supply curve
demand curve
Consumption curve
production possibilities Curve
There was a tremendous drought in California, where the majority of lettuce is grown for the United States. Lettuce is vitally needed to make delicious tacos for Taco Tuesday. As a result of the drought, the price of lettuce used to produce tacos doubles.
This change in price means that there is a _____ of lettuce and the price of tacos will ____.
surplus; increase
surplus; decrease
shortage; increase
shortage; decrease
Which of these pairs is an example of complementary products?
DVDs and VHS tapes
butter and margarine
sneakers and sandals
hot dogs and hot dog buns
Union workers in the shipping industry go on strike causing prices of foreign made goods to increase. Select the shifter and which curve is affected by this situation?
supply curve
demand curve
number of sellers
consumer expectations
government regulations
Input costs (Rising costs and technology)
Subsidies
Taxes and Regulations
Future expectation of prices
These would change WHAT part of the market?
Supply
Demand
Law of Supply
Law of Demand
Which determinant MIGHT increase supply in the market?
an increase in the price of complementary goods
an increase in the number of sellers of a product
an increase in the number of consumers in the market
an increase in the price of inputs to make the product
Due to technological advances, individuals are able to buy and download music from the Internet as opposed to simply buying music from a store.
Which statement describes an economic impact of this technological advance?
Consumer demand for compact discs has increased.
Consumer demand for compact discs has decreased.
The efficiency of downloading music has decreased.
The number of stand alone music stores has increased.
What will probably happen when the price of a product goes down?
other prices will increase
more people will want that product
fewer people will want that product
more will be able to pay for that product
Demand for a product is measured not only by consumer desire for a product, but also by
opportunity costs.
competition for the consumer.
demand for all similar products.
ability and willingness to buy the product.
How do supply and demand influence market price?
Supply determines market price because the seller sets the price.
The price is determined by the highest price consumers are willing to pay.
The price is determined by the lowest price producers are willing to accept.
The market clearing price is where quantity demanded is equal to quantity supplied.
If you wanted to start a new business that rents sun-shielding umbrellas to tourists, which of these risks would be MOST IMPORTANT to consider?
People hardly ever go to the beach.
The weather may not call for umbrellas.
People are not concerned about sun protection.
Most beach visitors spend all of their time in the water.
Which of these is TRUE of substitute products?
An increased price for one will always result in an increased price for the other.
An increased demand for one will always result in an increased demand for the other.
A decrease in price for one will usually result in an increased demand for the other.
A decrease in the price for one will usually result in a decrease in demand for the other.
Bert is vacationing in New York and decides to buy a whoopee cushion. He is amazed at the price of $8.00. He knows that the same item costs only $5.00 back in Springtown. This price difference is probably due to
the demand shortage in New York.
the labor shortage in Springtown.
higher business costs in New York.
higher commercial rents in Springfield.
Economically speaking, which food product would be a "substitute good" for a beef steak?
bread
pizza
bologna
ostrich
Market where production resources are bought and sold.
Factor Market
Surplus Market
Produce Market
Thought Market
Markets where producers sell their goods and services to consumers.
Product Market
Factor Market
Situational Market
Demand Market
When the nations total output of goods and services increase over time
GDP
Economic Growth
Local Growth Development
GDM
measure of the amount of output produced by a given amount of inputs in a specific period of time
Productivity
Elasticity
GDP
Product demand
Takes place when work is arranged so that individual workers do fewer tasks than before to complete a product.
Division of Labor
Assembly Mission
Productivity
Market
when factors of production perform tasks that they can do relatively more efficiently than others.
Specialization
Socialization
Speculation
Production
the sum of the skills abilities, health and motivation of people
Human Capital
Capital
Growth Income
GDP
When we rely on others and others rely on us for success
Economic Interdependence
Economic Division
Economic Productivity
Economic Division
A strike or lockout by professional athletes can impact the lives of those that work at the arena is an example of
Economic Interdependence
Product Market
Economic Dependence
Econmic Socialism
A student that goes to college or a vocational school is increasing their
Human Capital
Well being
Economic Capital
Human interdependence
Texas focusing on drilling for oil is an example of
Specialization
Economic Interdependence
Economic Supplementation
Economy Building
Henry Ford's Assembly Line is an example of
Division of Labor
Inefficient Production
Division of Produce
Growing Industry
__________ goes up whenever more output can be produced with the same amount of input
Specialization
Urbanization
Productivity
Division of Labor
When you sell your labor
Factor Market
Product Market
Social Market
Labor
A location that allows buyers and sellers to exchange a certain economic product
Market
Event
Surplus
Dividend
Low interest rates encourage business investment by
making it easier to predict business cycles.
decreasing the money supply.
preventing inflation.
making it cheaper to borrow money.
How to Produce
For whom to Produce
what do i need
what do i get
what to buy
what to sell
