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WorksheetsAP Economics final exam
Total questions: 132
Worksheet time: 3hrs 38mins
Which direction will the demand curve shift to show an increase in demand?
Left
Upward
Right
Downward
An oven at a bakery is an example of which factor of production?
labor
entrepreneurship
natural resource
capital
You love Hershey candy bars. You decide to eat one and it is fantastic! You decide to eat a second candy bar and it still very good. However, you then eat your sixth candy bar and you are feeling a bit sick and regretting it. What is this whole process called?
Law of diminishing utility
Low utility
Opportunity cost
High utility
In a few years, you may leave college and seek employment you are unemployed! What type of unemployment does this represent?
structural unemployment
seasonal unemployment
frictional unemployment
cyclical unemployment
As prices increase demand...
decreases
escalates
increases
stays the same
Minimum wage rises to $11.00 per hour. This is an example of what supply shifter?
Expectations
Change of conditions
Number of producers
Change in costs
Time would be an example of?
a factor of production
unlimited resource
a marginal cost
scarce resource
A printer and ink cartridges would be an example of what kind of good?
Complimentary
Demanded
Substitute
Natural
Which type of economy has central ownership, the government, and lack of individual choice?
Market
Mixed
Command
Traditional
Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.
subsistence
specialization
scarcity
bartering
Competition and profit motive are important characteristics of a:
command economy
traditional economy
market economy
socialist economy
What is Economics?
The study of how people manage scarce resources
The study of money
The study of how money works
The study of the stock market
Who is the maker of goods?
Producer
Consumer
Scarcity
Supply Chain
Who is the purchaser of goods?
Consumer
Producer
Economist
Supply Chain
Which is NOT a factor of production?
Land
Labor
Economic benefit
Capital
What is an interest rate?
The cost of doing business.
Sales tax
A factor of production
The percentage you pay on a loan.
What is seasonal unemployment?
Unemployment based on the seasons.
Unemployment based on shortage of skills.
Unemployment based on economic shortfalls.
Unemployment based on economic boom.
What is a simple definition of the unemployment rate?
Rate of people not working and do not care to work.
Rate of people who are working.
Percentage of the labor force who are out of work, but are looking for a job.
Percentage of the labor force who have a job.
The most highly valued opportunity or alternative forfeited when a choice is made
Trade
Specialization
Interdependence
Opportunity Cost
Not being able to have all of the goods and/or services that you want because people have endless wants, but goods and services aren't endless. So people are forced to make choices.
Scarcity
Trade
Standard of Living
Human Resources
What is the opportunity cost when this economy shifts production from point B to point C?
7 mobile phones
4 mobile phone
10 cameras
none of the above
Specialization increases productivity because...?
It Lets Workers Gain Expertise In Their Assigned Tasks
It Makes The Workers "Special"
It Lets Workers Socialize With Other Workers
It Gives The Workers Extra Pay
The goal of economic stability has two concerns:
Full Employment and...?
Stable Prices
Rising Prices
Falling Prices
Unstable Prices
When a surplus exists in a market, price is __________ equilibrium.
Above
Below
At
Cannot Be Determined
When a shortage exists in a market, price is __________ equilibrium.
Below
Above
At
Cannot Be Determined
If Claire has a fixed interest rate on a loan, what is the effect of unanticipated inflation on her?
Claire gains because she is repaying the loan with money that has less purchasing power than before
Claire loses because her interest rate will rise if inflation exists
Claire gains because is will take less time to repay the mortgage
Claire loses because her bank expects her to repay the loan immediately
Which would lead to inflation?
price ceilings
increase in aggregate supply of goods & services
an increase in the cost of production
reduced prices for goods & services
If an economy has increasing GDP, low unemployment rate, and increasing inflation, what is happening?
It is in a slowdown
The Government needs to fix the unemployment rate
The FED should expand the money supply
The economy is in an expansion phase of the business cycle
What is the result of an increase in the value of the US dollar against the Chinese Ren?
US workers would benefit
Chinese importers of US goods would benefit
US consumers of Chinese goods would benefit
Chinese consumers of Chinese goods would benefit
If the FED wants to grow/stimulate the economy, what should it do?
Decrease interest rates to encourage business's to get loans and encourage economic expansion
Increase interest rates to encourage business expansion
increase consumer spending by reducing money supply
increase the discount rate to charges banks to borrow money to increase the money supply
Land, Labor, Capital and Entrepreneurship are collectively called;
The basic economic problem
Wants vs needs evaluation
The factors of production
Supply and demand
The alternative that you give up when you make an economic choice.
Need
Opportunity cost
Trade off
Cost-benefit analysis
A economic model/graph used to illustrate the impact of scarcity on an economy by showing the maximum number of goods and services that can be produced using limited resources.
Efficiency frontier
Underutilization curve
Production possibilities curve
Cost-benefit analysis
Term used for a change in the amount of a product that a consumer will buy because the purchasing power of their income changes
Law of diminishing marginal utility
Substitution effect
Income effect
Surplus
Occurs when consumers react to a change in the price of a good or service by buying a substitute product.
Income effect
Law of diminishing marginal utility
Demand
Substitution effect
Goods that consumers demand more of when their incomes rise.
Gross Domestic Product
Normal goods
Inferior goods
Consumer Tastes
Goods that consumers demand less of when their incomes rise.
Gross domestic product
Normal goods
Inferior goods
Market size
When the use of one good increases the demand for another good, the two goods are said to be
Normal goods
Inferior goods
Complements
Substitutes
According to the Law of Supply; as prices fall...
Quantity supplied falls
Quantity demanded falls
Quantity supplied rises
None of these
The willingness and ability of producers to offer goods and services for sale.
Demand
Supply
Elastic
Inelastic
Occurs when the quantity demanded and the quantity supplied at a particular price are equal
Market equilibrium
Equilibrium price
Elasticity of price
Surplus
The price at which the quantity demanded and the quantity supplied are the same
Market equilibrium
Equilibrium price
Elastic
Inelastic
The result of quantity supplied being greater than quantity demanded
Elastic
Inelastic
Surplus
Shortage
The result of quantity demanded being greater than the quantity supplied
Elastic
Inelastic
Surplus
Shortage
What does a baby sitter provide ?
good
service
What does a farmer provide?
good
service
Using income for purchases, expenses, and debt
spending
savings
goods
services
money paid to the government through income, sales, and purchase of property
taxes
goods
scarcity
human resource
A good made in the United States and sent to other countries
export
consumer
savings
taxes
Which of the following will increase your profit for selling hot chocolate?
Use expensive materials
Lower the price
Give each buyer more hot chocolate
Use cheaper materials
The combining of human, natural, capital, and entrepreneurship resources to make goods or provide services
consumption
production
distribution
resources
Oil, natural gas, and coal
human resources
natural resources
entrepreneurship
capital resources
Construction worker, doctor, nurse, and teacher
capital resources
entrepreneurship
human resources
natural resources
Good used to make products or other services. Basic Categories: Tools, Equipment, Buildings, Machinery.
Capital Resources
Natural Resources
Human Resources
None
Sophia is starting her own coffee shop. What economic term would best describe Sophia and what does that term mean?
Consumer – a person who uses or consumes goods
Partnership – partner in the lemonade stand
Entrepreneur- - person who takes a risk to start a new company
According to the Law of Supply, as the price of a good increases,
buyers will buy more of the good.
buyers will buy less of the good.
sellers will produce more of the good.
sellers will produce less of the good.
According to the Law of Supply, as the price of a good falls
buyers will buy more of the good.
buyers will buy less of the good.
sellers will produce more of the good.
sellers will produce less of the good.
The _______________________ of market prices directs buyers and sellers towards activities that promote the general welfare.
prices
free market
invisible hand
comparative advantage
Sum of the employed and the unemployed
Employed
Unemployment
Labor Force
__________ occurs in the economy when unemployment and inflation are both high.
Hyperinflation
Disinflation
Deflation
Stagflation
The Law of Demand states that as prices rise, quantity demanded ______________.
Rises
Falls
Stays the Same
According to the graph, approximately _________ would be supplied and demanded at the equilibrium price of __________.
18; $3.50
5; $4.60
2; $2.00
47; $0.60
Which of the following choices could cause the movement shown in the graph?
A decrease in income
An increase in population
A decrease in the price of a substitute
An increase in the price of a complement
Which of the following choices could cause the movement shown in this graph?
A decrease in income
An increase in population
An increase in the price of a substitute
A decrease in the price of a complement
A movement from S2 to S3 would result in
An increase in market clearing price
An increase in supply
A decrease in market clearing price
A decrease in demand
If you wanted to determine if prices were remaining stable, what would you look at?
GDP
Unemployment Rate
Consumer Price Index
Monetary Policy
If you lose your job due to automation, what type of unemployment are you experiencing?
Structural
Frictional
Seasonal
Cyclical
In the business cycle model, a recession is MOST LIKELY
A turnaround point where the real GDP stops going up
A turnaround point where the real GDP stops going down
A period during which the real GDP increases for two quarters in a row
A period during which the real GDP decreases for two quarters in a row
The process by which the Federal Reserve impact the amount of money circulating in the economy is known as
Fiscal Policy
Open Market Operations
Monetary Policy
Taking
The decisions that the government makes to impact the economy is known as
Fiscal Policy
Discount Rate
Monetary Policy
Open Market Operations
Where do individuals sell their labor?
Households
Factor Market
Product Market
Revenue Market
What will directly result in an increase in China's Gross National Product?
increased wages earned in a Malaysian-owned factory in China
increased imports of goods and services
increased outflows of net property income
increased taxes on domestic expenditure
Between 2014 and 2015 the Polish economy expanded at a rate of 3.3%.What necessarily follows from this statement?
There was increased demand which caused inflation.
The cost of living rose by 3.3%
There was positive economic growth
The output of the industrial sector rose by 3.3%
What is likely to be the effect of a fall in oil prices on the global economy?
a decrease in the rate of economic growth
a decrease in unemployment
a strengthening of cost-push inflation
a weakening of demand-pull inflation
The value of spending on Australian exports (X) is likely to rise if:
there was a recession overseas
they became cheaper or more competitive for overseas buyers
the exchange rate for the A$ rose or became dearer against overseas currencies
there was a drought or floods in Australia that destroyed our crops.
A period of macroeconomic expansion or growth, followed by a period of contraction, or decline.
Business Cycle
Circular Flow
Equilibrium
GDP
An inward shift in the PPF depicts
Economic Growth
Economic Development
Higher standard of living
A recession
The graphs show how consumer prices and real GDP changed in a country between 1995 and 2005. Which conclusion may be drawn from the graphs?
Living standards remained roughly constant between 1995 and 2005.
The level of GDP was lower in 2005 than in 2000.
The country experienced continuous economic growth between 1995 and 2005.
The price level fell between 2000 and 2003.
Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?
Supply would increase
Supply would Decrease
Supply would stay the same
India is not a real country
If a wave of Peruvian immigrants migrated to south Florida, how might this affect the demand for Peruvian goods in the region?
Demand would increase
Demand would decrease
Demand would be unchanged
Quantity Demanded would increase
Refer to Graph 4-5. According to the graph, What occurs at a price of $7?
there would be a shortage of 40 units.
there would be a surplus of 40 units.
there would be a surplus of 20 units.
the market would be in equilibrium.
Which of the scenarios below could cause a change in the quantity demanded for gas, to go from point A to point B?
The price of gas increased
The price of gas decreased
If current production is shown by the green (x) on the supply curve, is there a shortage or a surplus?
shortage
surplus
Which of the following equations represents Aggregate Demand
GDP = X + I + C + (Y - Z)
GDP = C + I + G + (X - M)
GDP = C + I + X + (G - T)
GDP = (1/MPS)*G + I + C
Which of the following events will increase the Aggregate Demand in the economy. Check all that apply.
The government increasing Income Tax
The Fed lowering interest rates
A rise in the cost of raw material
A supply shock like a new production technology
An increase in consumer confidence
If a country imports more than it exports, it is experiencing a _______________
Budget Surplus
Budget Deficit
Trade Surplus
Trade Deficit
When there is a shortage of supply, and there is a high demand for a product, what happens to the PRICE of the product?
It decreases
It stays the same
It increases
Price is not affected by supply & demand
When there is a surplus of Christmas decorations at Walmart but a low demand for these products, what happens to the price of the products?
The price decreases
The price stays the same
The price increases
Price is not affected by supply & demand
