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Economics Semester Final Exam 2026

Total questions: 87

Worksheet time: 1hrs 7mins

Name
Class
Date
1.

4) In simple terms, economics is all about

a)

A) Making money

b)

B) Making choices

c)

C) Scarcity

d)

D) Producing goods

2.

10) All the resources used to produce other goods and services.

a)

A) Labor

b)

B) Natural Resources

c)

C) Capital Resources

d)

D) Opportunity

3.

45) The graph represents which concept of demand

a)

A) Change in Price

b)

B) Change in Quantity Demand (Slide)

c)

C) Decrease in Demand

d)

D) Change in Demand (Shift)

4.

45) The price of coffee increases and people switch to drinking tea. The determinant of demand (Shifter) is

a)

A) Income

b)

B) Consumer Preferences/Tastes

c)

C) Price of Related Goods (Complements)

d)

D) Price of Related Goods (Substitutes)

5.

53) The price at which the amount demanded is equal to the amount supplied

a)

A) Shortage

b)

B) Surplus

c)

C) Equilibrium price

d)

D) Profit

6.

95) The dollar value of all final goods and services produced within a country's borders in a given year and a measure of economic well being.

a)

A) Consumer Price Index

b)

B) GDP per capita

c)

C) Gross Domestic Product

d)

D) Inflation

7.

99) GDP is calculated by adding all of the components, EXCEPT

a)

A) Consumer Goods

b)

B) Government Spending

c)

C) Underground Economy

d)

D) Business Investment

8.

Which type of economy has central ownership, the government, and lack of individual choice?

a)

Market

b)

Mixed

c)

Command

d)

Traditional

9.
In this type of economy, the people decide the supply, demand, and price.  
a)
Market 
b)
Traditional
c)
Command 
d)
Mixed
10.

Capitalism is in what type of economy?

a)

Traditional

b)

Command

c)

Market

d)

Authortarian

11.

Which of the following is an example of the effects of competition in the economy?

a)

A gas station goes out of business because of a fire.

b)

A gas station raises its prices because of an oil shortage.

c)

A gas station lowers its prices when the price of oil goes down.

d)

A gas station lowers its prices when a new gas station opens up next door.

12.

Which of the following describes an entrepreneur?

a)

A person who is hired to work in a factory.

b)

A person who organizes, operates, and assumes the risk for a business venture.

c)

A person who organizes loans the money to a new business just getting started.

d)

A person who invests in businesses to make money.

13.

Why would a person be willing to risk losing money in starting a new business?

a)

the person makes bad financial decisions

b)

The person does not care if he or she loses money

c)

The business is guaranteed to make money

d)

The person believes the business has a greater chance of succeeding than failing.

14.

Tom grows vegetables and sells them to the local neighbors. They have always liked Tom's vegetables, but a new grocery store opened around the corner. The store sells vegetables too, and many of Tom's neighbors shop there instead. This means that the demand of Tom's vegetables has gone down.

a)

True

b)

False

15.

What is the study of the way goods and services are made and used?

a)

market

b)

geography

c)

economics

16.

Where buyers and sellers exchange goods and services.

a)

government

b)

economics

c)

market

17.

People who produce goods and services.

a)

producer

b)

consumer

c)

market

18.

What you give up when making a decision.

a)

long term goal

b)

opportunity cost

c)

producer

19.

Lack of available resources.

a)

services

b)

scarcity

c)

goods

20.

Resources that come from nature: water, soil, trees, coal, etc.

a)

natural resources

b)

scarcity

c)

market

21.

Someone who buys or uses goods and services.

a)

producer

b)

services

c)

consumer

22.

Pick the producer.

a)
b)
23.

Pick the consumer.

a)
b)
24.
a)

long term savings goal

b)

short term savings goal

25.
a)

long term savings goal

b)

short term savings goal

26.
Scarcity is a basic economic problem because-
a)
resources are limited
b)
governments limit production
c)
opportunity costs limit demand
d)
people have trouble making choices
27.
One result of competition in a free enterprise system is —
a)
improved safety conditions
b)
steady wages and incomes
c)
lower prices for products
d)
fewer consumer choices
28.
Loans that are obtained by offering an asset to guarantee repayment of the loan are considered —
a)
default loans
b)
unsecured loans
c)
repossession loans
d)
secured loans
29.
Why would a person place her or his savings in a high-risk investment rather than a low-risk investment?
a)
confidence in a strong economy
b)
not worried about losing money
c)
to make a high return
d)
to pay less taxes
30.

In a few years, you may leave college and seek employment you are unemployed! What type of unemployment does this represent?

a)

structural unemployment

b)

seasonal unemployment

c)

frictional unemployment

d)

cyclical unemployment

31.

As prices increase demand...

a)

decreases

b)

escalates

c)

increases

d)

stays the same

32.

Time would be an example of?

a)

a factor of production

b)

unlimited resource

c)

a marginal cost

d)

scarce resource

33.

A printer and ink cartridges would be an example of what kind of good?

a)

Complimentary

b)

Demanded

c)

Substitute

d)

Natural

34.
Economics is...
a)
studying goods, services, and how people can get them.
b)
studying trees, bushes, and other plants.
c)
studying animals and wildlife.
d)
studying food, and how food is made.
35.
The resources required to make a product (good or service)
a)
economics
b)
consumption
c)
four factors of production
d)
scarcity
36.

Oil, natural gas, and coal

a)

human resources

b)

natural resources

c)

entrepreneurship

d)

capital resources

37.
certificate of ownership in a company
a)
bond
b)
cd
c)
stock
38.
used to purchase items in an economy
a)
stocks
b)
bonds
c)
money
39.
a situation when quantity demand is greater than quantity supplied
a)
shortage
b)
surplus
c)
equilibrium
40.
general rise in prices
a)
deflation
b)
inflation
c)
upflation
41.

Total amount of a product offered for sale

a)

demand

b)

inventory

c)

supply

42.

a long term investment when the individual lends their money to the government or a company and they will repay the investment plus interest on a set date

a)

stock

b)

mutual fund

c)

bond

d)

savings account

43.

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

a)

subsistence

b)

specialization

c)

scarcity

d)

bartering

44.

What is an interest rate?

a)

The cost of doing business.

b)

Sales tax

c)

A factor of production

d)

The percentage you pay on a loan.

45.

What is seasonal unemployment?

a)

Unemployment based on the seasons.

b)

Unemployment based on shortage of skills.

c)

Unemployment based on economic shortfalls.

d)

Unemployment based on economic boom.

46.

What is a simple definition of the unemployment rate?

a)

Rate of people not working and do not care to work.

b)

Rate of people who are working.

c)

Percentage of the labor force who are out of work, but are looking for a job.

d)

Percentage of the labor force who have a job.

47.

What is the opportunity cost when this economy shifts production from point B to point C?

a)

7 mobile phones

b)

4 mobile phone

c)

10 cameras

d)

none of the above

48.

Specialization increases productivity because...?

a)

It Lets Workers Gain Expertise In Their Assigned Tasks

b)

It Makes The Workers "Special"

c)

It Lets Workers Socialize With Other Workers

d)

It Gives The Workers Extra Pay

49.

When a shortage exists in a market, price is __________ equilibrium.

a)

Below

b)

Above

c)

At

d)

Cannot Be Determined

50.

If an economy has increasing GDP, low unemployment rate, and increasing inflation, what is happening?

a)

It is in a slowdown

b)

The Government needs to fix the unemployment rate

c)

The FED should expand the money supply

d)

The economy is in an expansion phase of the business cycle

51.

Land, Labor, Capital and Entrepreneurship are collectively called;

a)

The basic economic problem

b)

Wants vs needs evaluation

c)

The factors of production

d)

Supply and demand

52.

Occurs when consumers react to a change in the price of a good or service by buying a substitute product.

a)

Income effect

b)

Law of diminishing marginal utility

c)

Demand

d)

Substitution effect

53.

Goods that consumers demand less of when their incomes rise.

a)

Gross domestic product

b)

Normal goods

c)

Inferior goods

d)

Market size

54.

When the use of one good increases the demand for another good, the two goods are said to be

a)

Normal goods

b)

Inferior goods

c)

Complements

d)

Substitutes

55.

According to the Law of Supply; as prices fall...

a)

Quantity supplied falls

b)

Quantity demanded falls

c)

Quantity supplied rises

d)

None of these

56.

Occurs when the quantity demanded and the quantity supplied at a particular price are equal

a)

Market equilibrium

b)

Equilibrium price

c)

Elasticity of price

d)

Surplus

57.

The price at which the quantity demanded and the quantity supplied are the same

a)

Market equilibrium

b)

Equilibrium price

c)

Elastic

d)

Inelastic

58.
House: Goods or Service?
a)
Goods
b)
Service
59.
Doctor: Goods or Service?
a)
Goods
b)
Service
60.
What is a need?
a)
Nothing
b)
Something you have to have to live
c)
Something you would like to have
d)
Ice cream
61.
What is a want?
a)
A person
b)
Something you would like to have but don't need to live
c)
Purple
d)
Something you need to live
62.

money paid to the government through income, sales, and purchase of property

a)

taxes

b)

goods

c)

scarcity

d)

human resource

63.

A good made in the United States and sent to other countries

a)

export

b)

consumer

c)

savings

d)

taxes

64.
What term refers to a good that comes into a country?
a)
Trade
b)
Migration
c)
Export
d)
Import
65.
Using the graph,  what would be true of an economy which produces $4 billion of civilian and military goods?
a)
It would be experiencing economic growth
b)
It would not be an efficient economy
c)
 It would be lacking capital
d)
It would be a peak efficiency 
66.
Point D on the chart most likely show an economy that ...
a)
has unemployment
b)
is growing
c)
is using all it resources
d)
is having inflation
67.
Point L on the chart most likely show an economy that ...
a)
has unemployment
b)
is growing
c)
is using all it resources
d)
is having inflation
68.

Good used to make products or other services. Basic Categories: Tools, Equipment, Buildings, Machinery.

a)

Capital Resources

b)

Natural Resources

c)

Human Resources

d)

None

69.

According to the Law of Supply, as the price of a good increases,

a)

buyers will buy more of the good.

b)

buyers will buy less of the good.

c)

sellers will produce more of the good.

d)

sellers will produce less of the good.

70.

The _______________________ of market prices directs buyers and sellers towards activities that promote the general welfare.

a)

prices

b)

free market

c)

invisible hand

d)

comparative advantage

71.
Unemployment caused by decreased demand for lifeguards during the winter.
a)
Frictional
b)
Seasonal
c)
Cyclical
d)
Structural
72.
Unemployment caused by a recession.
a)
Seasonal
b)
Cyclical
c)
Structural
d)
Frictional
73.

Sum of the employed and the unemployed

a)

Employed

b)

Unemployment

c)

Labor Force

74.

The Law of Demand states that as prices rise, quantity demanded ______________.

a)

Rises

b)

Falls

c)

Stays the Same

75.

According to the graph, approximately _________ would be supplied and demanded at the equilibrium price of __________.

a)

18; $3.50

b)

5; $4.60

c)

2; $2.00

d)

47; $0.60

76.

If you lose your job due to automation, what type of unemployment are you experiencing?

a)

Structural

b)

Frictional

c)

Seasonal

d)

Cyclical

77.

In the business cycle model, a recession is MOST LIKELY

a)

A turnaround point where the real GDP stops going up

b)

A turnaround point where the real GDP stops going down

c)

A period during which the real GDP increases for two quarters in a row

d)

A period during which the real GDP decreases for two quarters in a row

78.

What will directly result in an increase in China's Gross National Product?

a)

increased wages earned in a Malaysian-owned factory in China

b)

increased imports of goods and services

c)

increased outflows of net property income

d)

increased taxes on domestic expenditure

79.

What is likely to be the effect of a fall in oil prices on the global economy?

a)

a decrease in the rate of economic growth

b)

a decrease in unemployment

c)

a strengthening of cost-push inflation

d)

a weakening of demand-pull inflation

80.

A period of macroeconomic expansion or growth, followed by a period of contraction, or decline.

a)

Business Cycle

b)

Circular Flow

c)

Equilibrium

d)

GDP

81.
Would the following be included or not included in GDP?  The purchase of a used tractor by a farmer.
a)
Included
b)

Not included

82.
Would the following be included or not included in GDP?  Income earned from cashing in a U.S. savings bond.
a)
Included
b)
Not included
83.
Would the following be included or not included in GDP?  Grandpa Smith's Social Security check from the government.
a)
Included
b)
Not included
84.

An inward shift in the PPF depicts

a)

Economic Growth

b)

Economic Development

c)

Higher standard of living

d)

A recession

85.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
86.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
87.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above