WorksheetsEconomics Final Exam Review.
Total questions: 24
Worksheet time: 12mins
Name the 4 factors of production and their incomes:
Labor = Wages
Land = Rent
Capital = Interest
Entrepreneurship = Capital
Minerals = Dividends
Scarcity is when...
Supply is greater than demand for a good or service.
Demand is greater than supply for a good or service.
Supply and demand are equal for a good and service.
What are the 3 basic economic questions?
When to buy?
What to produce?
How to produce it and how much to produce of it?
How to invest it?
For whom to produce it for?
Opportunity cost is:
Doubled during expansion phase of the business cycle.
Always greater during inflation.
What you give up in order to get your first choice.
Equally distributed across the supply curve.
What economic model demonstrates opportunity cost?
Production distribution graph
Production Possibilities Curve (PPC)
Possible Outcomes Curve
Another name for a free enterprise system is
Democratic economy
Modern economy
Market economy
Industrial economy
The economic system closest to pure command model is:
Authoritarian
Traditional
Socialist
Capitalist
The term that can be defined as the loss of the next best use of resources is:
Cost Efficient Production
Capital
Scarcity
Opportunity cost
Government subsidies have the effect of
Lowering the cost of production
Forcing producers to leave the market
Reducing supply
Raising costs
The only way to move along a supply curve for a product is for
The number of sellers to increase or decrease
The price of resources used to produce the product to increase or decrease
Technological changes to occur
The product’s price to increase or decrease
Which of the following will increase the supply of corn?
An increase in the price of fertilizer
An overall improvement in agricultural technology
A decrease in the current price of corn
A severe drought in the corn belt
One reason that Congress places subsidies on agricultural goods is
To keep agricultural prices as high as possible
To help shift the demand curve to the left
To help farmers out with their uncertain income
To harm farmers because of their unfairly high income
A market economy adjusts to unexpected events by
Adjusting demand and supply
Raising prices
Consumer adjustments and wild-cat strikes
Maintaining consumption and production levels
Which of the following is NOT a monopolistic competition industry?
Phone providers
Grocery stores
Fast food restaurants
Clothing stores
Which Economic system let nearly 4 million Ukrainians die of starvation between 1931-1934?
Capitalism
Traditional
Socialism
Communism
Who wrote the Communist Manifesto?
Adam Smith
Karl Marx
Joseph Stalin
Adolf Hitler
Which best describes Laissez-Faire?
The government has little to no involvement in the economy.
The government has full control of the economy.
The government creates a 5 year plan for the economy.
Laissez-Faire wrote the "Wealth of Nations."
Who wrote the Wealth of Nations?
Laissez-Faire
Adam Smith
Karl Marx
Joseph Stalin
What is a Bond?
A loan to a government or business.
A fraction of ownership in a company.
A rule set by the government concerning the printing of money.
The receipt a bank prints to show income on your taxes.
What is a stock?
A loan given to a government or business.
A fraction of ownership in a corporation.
A rule set by the government about the printing of money.
Proof of income for your taxes.
Which economic system caused 3.5 million North Koreans to starve to death between 1994-1998?
Communism
Traditional
Socialism
Capitalism
Which economic system caused 55 million Chinese to die of starvation between 1959 and 1961?
Capitalism
Communism
Socialism
Traditional
Which of the following best describes a command economy?
Businesses compete freely with little regulation.
Private individuals own most resources.
The government makes all economic decisions.
Prices are determined by supply and demand.
What is the main reason for scarcity in economics?
Unlimited resources and limited wants
Government control of production
Limited resources and unlimited wants
Equal distribution of goods
