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WorksheetsEcon Final Review
Total questions: 96
Worksheet time: 2hrs 31mins
The amount of money a business makes after its expenses are paid
profit
supply
demand
scarcity
The development of a worldwide economy where resources flow fairly freely across borders.
Globalization
Economy
GDP
Economic Independence
Buyers choose what items are produced based on their spending habits
Consumer Sovereignty
Factors of Production
Efficiency
Cost / Benefit Analysis
1. A person who starts a business to produce a new product in the marketplace is known as:
A manager.
A bureaucrat.
An entrepreneur.
Consumer
A person who provides a good or service
producer
need
want
consumer
money paid to the government through income, sales, and purchase of property
taxes
goods
scarcity
human resource
What are the four FACTORS OF PRODUCTION?
Primary, Secondary, Tertiary, and Quarternary
Capitalists, Socialists, Anarchists, and Fascists
Land, Labor, Capital, and Entrepreneurship
Input, Output, Scarcity, and Profit
What are the four types of ECONOMIC SYSTEMS?
Primary, Secondary, Tertiary, and Quarternary
Land, Labor, Capital, and Entrepreneurship
Democracy, Dictatorship, Theocracy, and Anarchy
Traditional, Free Market/Capitalist, Mixed, and Centrally Planned/Command
What does the CIRCULAR FLOW MODEL show?
The flow of money between households and firms.
How a society chooses between WANTS and NEEDS.
The flow of resources between the Resource Market and Product Market.
The flow of money, goods, and resources between the different sectors of the economy.
What does a PRODUCTION POSSIBILITIES CURVE show?
The maximum output that possible when an economy utilizes ALL of its available resources.
The prices that economies can charge for their goods and services.
The flow of goods between product markets and households.
All of the different possibilities that an economy has when choosing how to best utilize its resources.
What would cause a PPC (Production Possibilities Curve) to shift outward (to the right)?
A decrease in available resources
A decrease in the amount of resources used
An increase in the price of finished goods and services
An increase in available resources or an increase in the efficiency with which existing resources are used
What is SPECIALIZATION?
Choosing a specific class in a role playing game
Stores giving discounts on specific goods or services
Focusing energy and resources on maximizing production of one specific good or service.
Diners serving a specific meal on certain days at a lower price.
What are ECONOMIC INCENTIVES
Payments made by households to governments
Discounts to encourage people to buy a certain car
Payments to encourage businesses and households to do a certain thing.
Small copper cups that hold scented candles
Veronica has been wearing a popular perfume for several years, and recently the price increased by $10. How will the price likely affect the quantity demanded and supplied?
Supply will decrease, demand will increase.
Supply will increase, and demand will decrease.
Supply will increase, and demand will stay the same.
Supply will stay the same, demand will increase.
What must you have in order to have demand?
Ability, willingness, and desire to buy a product.
Desire and willingness to buy a product.
Insistence that you should own the product.
Right to own a product.
The law of demand states that:
Consumers buy less at lower prices.
Consumers do not respond to price changes.
Consumers will buy more at lower prices.
Sellers will offer more to the market at high prices.
When Economists say that "the demand for apples has decreased", it means that:
At any price, the quantity of apples demanded has fallen.
At any quantity demanded, the price of apples have risen.
Higher prices will result in an increase in the quantity of apples demanded.
The demand curve for apples has shifted to the right.
The price of airline flights increased recently. Some economists suggest that the price increased because there has been an increase in the number of business travelers. If they are correct, it must be the case that...
Demand decreased
Demand increased
Supply increased
Supply decreased
If the market for corn is in equilibrium:
All consumers of corn receive the same quantity of corn.
All producers of corn earn the same amount of income form the sale of corn.
Every producer who sells corn can do so
The price is at a level where the quantity of corn supplied is equal to the quantity of corn demanded.
A maximum price set below the equilibrium price is a:
Demand price
Price ceiling
Price floor
Supply price
A price that the government guarantees farmer will receive for a particular crop is a:
Excise tax
Export price
Price ceiling
Price floor
The equilibrium quantity is _____ and the equilibrium price is _______.
175 bags and $0,60
185 bags and $0.40
210 bags and $0.50
350 bags and $0.80
A surplus of 30 bags of chocolate covered peanuts exists if the price is _______ per bag.
$0.60
$0.70
$0.80
$0.90
When the demand for Halloween candy decreases after October 31th, what will happen to the price of the leftover candy?
It will increase
It will decrease
No change
It will double because candy is rare
Local gasoline prices...
Prices fall due to decreased demand
Prices rise due to increased demand
Prices remain unchanged because demand remains constant.
Supply decreases caused by falling prices
The law of supply states...
Producers will offer less supply at higher prices
Producers will offer more supply at lower prices
Producers will offer more supply at higher prices
Producers will offer less supply at lower prices
With a given amount of resources, a country with a comparative advantage will produce a product with-
cheaper natural resources
demand decreases
higher quality specifications
lower opportunity costs
A country has absolute advantage when:
They can produce the most output with the least resources
They can produce the most output with the most resources
They can produce the product with the cheapest opportunity cost
They can produce the product with the highest opportunity cost
Based on the information in the graph, what is the equilibrium price of pizza?
$2.00
$3.00
$4.00
$5.00
What is the difference between a shortage and scarcity?
A shortage is temporary but scarcity always exists
A shortage results from rising prices; scarcity results from falling prices
A shortage is lack of all goods and services; scarcity concerns a single item
There is no real difference between a shortage and scarcity
Which of the following is a need?
Ice cream
Houses
Basketballs
Candy!!! (I want candy)
All of the following are factors of production except
Land
Money
Labor
Chicken
Which is an example of a renewable resource?
Timber
Windpower
Water
All of the above
Please complete the following sentence: ____ are people whose efforts and skills go into the production of goods and services.
Labor
Markets
Economics
Resources
What are the four types of resources? Choose all that apply?
Land
Labor
Capital
Entrepreneurship.
According to the substitution effect, if two items satisfy the same need and the price of one rises,
people will buy more of the higher-priced item.
people will buy more of the lower-priced item.
the demand will go up.
people will buy something else.
A shift to the left in the demand curve indicates a(n)
decrease in price.
decrease in demand.
increase in population.
increase in demand.
If two products are complementary goods, how will a decrease in the price of one affect the other?
demand will increase
price will increase
demand will decrease
price will decrease
Prices on goods and services are determined
only by demand.
only by supply.
by both demand and supply.
neither by demand nor supply.
What did Adam Smith say was a force that guided the economy?
The Invisible Man
The Invisible Ham
The Invisible Hand
The invisible Force
Adam Smith was Known as the _______________
First Economist
Inventor of Communism
Theorist of divisions of labor
The first official pope of the Irish
___________________ is the study of how consumers, workers, and firms interact to generate outcomes in specific markets.
Macroeconomics
Microeconomics
Economics
Equilibrium
Sony gets new technology that will allow more PlayStation 5s to be produced each hour. How will this affect the supply of PS5s?
No shift in the supply curve, it is a price change
The government places strict regulations on fracking (a way of drilling for oil) to prevent oil spills and other problems that can harm the environment. How will this affect the supply of oil?
No shift in the supply curve, it is a price change
A terrible blizzard destroys the herds of most ranchers in the western U.S. How will this affect the supply of beef?
No shift in the supply curve, it is a price change
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
The graph represents which concept of demand
Change in Price
Decrease in Demand
Change in Quantity Demand (Slide)
Change in Demand (Shift)
In which part of the GDP calculation does this fit?
You spend $15 at AMC to see the latest Avengers movie.
Consumer spending
Government spending
Investment spending
Net exports
In which part of the GDP calculation does this fit?
The US military spends $5 billion on five new helicopters.
Consumer spending
Government spending
Investment spending
Net exports
The Consumer Price Index (CPI) can be defined as
The market value of all final goods and services
A measure of inflation based on the cost of a fixed “market basket”
A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?
inflation
recession
This reflects those who are actively seeking employment.
full employment
unemployment rate
labor force
underemployed
What is GDP?
Gross Domestic Product
Get Duties Prior
Gross Department Power
Gross Duties Peer
Who is in charge of Monetary Policy
The Government
The Federal Reserve System
The states
The Department of the Treasury
It is the study of the nations economy as a whole.
Microeconomics
National economy
National output
Macroeconomics
It is the measure of a country's total production of final goods and services in a given period of time.
Gross National Product
Gross Domestic Product
Exports
Imports
Which of the following scenarios show frictional unemployment?
John got laid-off from work since the company is not making enough money.
Jeff cannot find work since most blue collar jobs are already filled.
Ramon quit his jobs to move to Canada for a better job offer.
Alberto works as a call center agent after graduating nursing
Which of the following situation describes unemployment?
Robert is a full-time student.
Sharon just graduated from college.
George earns 70 pesos an hour.
Gene works after school as a bagger at a local grocery store.
It is the total market value of all the final goods and services in a given period of time by the country's citizens.
Gross National Product
Gross Domestic Product
Consumer Price Index
Market Basket of Goods
It captures the prices of goods and services that consumers typically buy.
Total Weighted Price
Weighted Price
Consumer Price Index
Consumer Product Index
