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WorksheetsEconomics Final
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
Scarcity is an economic problem with which all societies are faced.
a)
T
b)
F
2.
Opportunity cost refers to
a)
A) the dollar amount attached to a good or service.
b)
B) the value of the next best alternative.
c)
C) the cost of not expanding production.
d)
D) the cost of labor when production is expanded or changed.
3.
How are economic transactions shaped in a traditional economy?
a)
A) Each community decides as a group for whom the group will produce.
b)
B) Elders and ancestors make certain that things are done in specific ways.
c)
C) The three basic questions of production do not arise in this type of economy.
d)
D) Individuals form networks within which they buy, sell and trade as they choose.
4.
Which of the following lists economic systems in order from least to most flexible?
a)
command, socialism, free market
b)
free market, socialism, command
c)
socialism, command, free market
d)
free market, command, socialism
5.
How is the principle of “There’s No Such Thing As A Free Lunch” illustrated in a socialist economy?
a)
Socialist economies tend to collapse when they become too large.
b)
The marketplaces in a socialist economy are free for anyone to enter.
c)
Socialist policies offer advantages to the wealthy at the expense of those less well-off.
d)
Socialist economies tend to offer extensive government services but have high tax rates.
6.
Who did Karl Marx believe would be the beneficiaries of socialism?
a)
property owners
b)
the government
c)
workers
d)
capitalists
7.
The country that has the highest per capita income and is a capitalist system is
a)
US
b)
Norway
c)
Germany
d)
Singapore
8.
One of the characteristics of a capitalist free enterprise economy is
a)
minimum wage
b)
consumerism
c)
voluntary exchange
d)
central planning
9.
Who is said to have “sovereignty” over a free market?
a)
government
b)
consumers
c)
entrepeneurs
d)
businesses
10.
A general rise in the level of prices over time is known as
a)
catalyst
b)
voluntary exchange
c)
profit
d)
inflation
11.
Who ultimately determines the success of a product?
a)
government
b)
producers
c)
consumers
d)
sellers
12.
What are the characteristics of demand?
a)
the desire and ability to buy
b)
the ability and willingness
c)
the willingness and desire
d)
the desire, ability, and willingness
13.
Which of these is an example of VARIABLE cost?
a)
raw materials
b)
interest on bonds
c)
state and local taxes
d)
payments on leases
14.
Consider the term marginal utility. Which word is the best synonym for MARGINAL?
a)
useful
b)
satisfactory
c)
borderline
d)
additional
15.
Which of these would an item’s producer be MOST likely to do if total revenue on that item began to drop?
a)
produce less of the item
b)
produce more of the item
c)
raise the price
d)
lower the price
16.
Which of these in an example of FIXED cost?
a)
labor costs
b)
delivery of goods
c)
depreciation of a capital good
d)
electrical bill
17.
Factors that can cause a change in supply include
a)
tech and govt regulations
b)
increase of sellers
c)
change in govt subsidies
d)
all of the above
18.
Which of these is the most likely to create a SURPLUS of an item?
a)
price floor
b)
price ceiling
c)
fixed pricing
d)
market pricing
19.
Which of these is the most likely to create a SHORTAGE of an item?
a)
price floor
b)
price ceiling
c)
fixed pricing
d)
market pricing
20.
Equilibrium is reached when what occurs?
a)
quantity supplied equals demand
b)
no change in demand
c)
price increases
d)
price decreases
21.
Which is the opposite of a surplus?
a)
inelasticity
b)
shortage
c)
equilibrium
d)
floor
22.
What best describes a target price?
a)
price ceiling
b)
price floor
c)
equilibrium
d)
model price
23.
Without prices, the three basic questions of WHAT, HOW, and FOR WHOM to produce are answered by
a)
consumers
b)
producers
c)
government
d)
markets
24.
Which is an example of a public good?
a)
a rock band
b)
car
c)
military
d)
bread
25.
Pure competition and monopoly are _____ .
a)
the same
b)
almost the same
c)
noncomparible
d)
opposites
26.
Which of these names a function of the Federal Trade Commission?
a)
enforcing zoning regulations
b)
establishing economies of scale
c)
halting unfair business practices
d)
supervising mortgage forclosures
27.
Which of the following is the single largest source of federal revenue?
a)
personal income tax
b)
corporate income tax
c)
borrowing
d)
Medicare payroll taxes
28.
Which of the following is the single largest federal expenditure?
a)
National defense
b)
Social Security
c)
interest
d)
Medicare
29.
What do state governments spend the most on?
a)
local govts
b)
federal govt
c)
welfare
d)
education
30.
How many Federal Reserve districts are there?
a)
1
b)
6
c)
12
d)
50
31.
How would a college student most likely be affected by a severe cut in her state’s budget?
a)
Pay more tuition
b)
inability to pay utilities
c)
unrepaired roads
d)
higher retail prices
32.
What is macroeconomics concerned with?
a)
entrepreneurship
b)
labor and wages
c)
large economic sectors
d)
fiscal policy
33.
The equilibrium price is determined by ____.
a)
government
b)
tax rates
c)
Mega Corps
d)
Markets
34.
Advocates of supply-side economics argue that spending by the federal government _____.
a)
helps stimulate economic growth
b)
has no effect on economic growth
c)
slows economic growth
d)
can crash the markets completely
35.
What are the Fed’s three main tools for conducting monetary policy?
a)
reserve requirement, open market operations, and the discount rate
b)
easy money policy, discount rate, the quantity of money theory
c)
easy money policy, tight money policy, and quanitity of money theory
d)
the reserve requirement, open market regulations, and wage-price controls
36.
Which agency manufactures U.S. paper money?
a)
The Bureau of the Mint
b)
the Comptroller of Money
c)
Federal Deposit Insurance Corp
d)
Burea of Engraving and Printing
37.
Which of the following is a barrier to trade?
a)
absolute advantage
b)
NAFTA
c)
quotas
d)
opportunity costs
38.
Why do nations trade?
a)
so they can specialize
b)
because they believe the products they produce are worth more than the products they import
c)
because they need to acquire raw materials
d)
all of the above
39.
Who is most likely to place an embargo?
a)
a government
b)
a corporation
c)
an importer
d)
the market
40.
Two obstacles to a nation’s economic development are:
a)
high literacy and external debt
b)
population growth and disease
c)
corruption and zero population growth policy
d)
war and foreign investment
41.
One of the disadvantages of a sole proprietorship is that the owner holds
a)
limited liability
b)
capital formation
c)
unlimited liability
d)
limited partnership
42.
Some of the most popular types of insurance coverage are
a)
long term care
b)
disability
c)
life
d)
all of the above
43.
What does a stockholder “hold”?
a)
the profits of buisness
b)
a share of a corporation
c)
part of a mutual fund
d)
a treasury bill
44.
You should complete a FAFSA form if you want ______.
a)
financial aid for college
b)
housing assistance
c)
auto or property insurance
d)
to donate money to a charity
45.
The percentage a bank charges borrowers is called the
a)
mortgage percentage
b)
interest rate
c)
savings fee
d)
credit ratio
46.
If you defaulted, you failed to _____.
a)
pay back a loan
b)
apply for financial aid
c)
qualify for health insurance
d)
give money to charity
47.
Why is it important to live on a budget?
a)
it will eliminate your expenditures
b)
it will increase your income
c)
it will make your life easier
d)
it will make you a financial advisor
48.
As a rule of thumb, when renting an apartment, your monthly rent should not be more than the amount you earn in ______.
a)
one week
b)
two weeks
c)
three weeks
d)
four weeks
49.
Every student who wants financial aid must _____.
a)
join the military
b)
take AP classes
c)
apply for a social security card
d)
fill out a FASFA
50.
What is the best title for a list that includes: Direct Subsidized; Direct PLUS; and Direct Consolidation?
a)
types of financial aid
b)
common federal student loans
c)
Key FAFSA Requirements
d)
Work-Study Programs
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