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WorksheetsEconomics Final Exam
Total questions: 60
Worksheet time: 32mins
What are the factors of production?
Land, labor, capital, entrepreneurship
Land, needs, wants, capitals
Rent, wages, interest, profit
Land, labor, scarcity, entrepreneurship
In the production of loaves of bread, which best represents the factor 'land'?
The flour used in the dough
The retailer who sells the bread
The oven used to bake the bread
The entrepreneur who started the company
What is the person who takes the initiative to create or start a company, often risking their own money, called?
Entrepreneur
Human capital
Natural resources
Physical capital
Due to scarcity you must make decisions, when you make a decision what is your next best alternative called?
Scarcity
Trade-offs
Opportunity costs
Microeconomics
People’s education, skills/abilities, health, and motivation are all part of _________ capital.
Physical
Natural
Financial
Human
Due to scarcity you must make decisions, when you make a decision what are ALL of the possible alternative decisions you could have made called?
Scarcity
Trade-offs
Opportunity costs
Microeconomics
According to marginal analysis when should you make a decision?
the decision is lawful.
when the costs outweigh the benefits
the producer makes a profit.
when the benefits outweigh the costs
Which of the following best describes marginal benefit?
The total benefit you get when you sell a good or service
The additional expenses or effort you expend when performing on more action
When scarce productive resources meet the needs of consumers
The additional benefit you receive from performing one more action
Which of the following best describes marginal cost?
The additional expenses or effort you expend when performing one more action
The additional benefit you receive from performing one more action
The total amount you pay for a good or service
When consumers wants and needs exceed scarce productive resources
Which of the following is the best example of an implicit cost?
The price of a movie ticket.
The homework you could have completed instead of going to see a movie
The cost of fuel to drive to the movie theater
The cost of popcorn and a drink.
Which of the following is the best example of explicit cost?
The price of a movie ticket.
The homework you could have completed instead of going to see a movie
The money you lost by watching a movie instead of working
The movie you choose NOT to see
You run a business that sells hotdogs and burgers. What is your Opportunity Cost of increasing the production of hotdogs from 450 to 900?
150 burgers
225 burgers
300 burgers
450 burgers
You run a shoe and sock factory. Your production is currently maxed out. What is the Opportunity Cost of increasing production of shoes from 400 to 600?
400 socks
300 socks
200 socks
100 socks
Humphery Flobart is trying to decide whether to take a job as the manager at the local Wendy's (making $25,000/year) OR attend college. He cannot do both. For Humphery, the opportunity cost of attending college includes...
The money he will spend on food whether or not he attends college.
The money he will spend on dates with his girlfriend, whether or not he attends college.
The $25,000 Humphery could make managing the local Wendy's next year if he didn't go to college.
The cost that Humphery's college, Boptown University, just paid to construct a new International Studies building.
Suppose that you prefer reading a book you already own to watching TV and that you prefer watching TV to listening to music. If these are your only 3 choices, what is the opportunity cost of reading?
Watching TV AND Listening to Music
Watching TV
Listening to Music
The Price of the book
Suppose that you prefer reading a book you already own to watching TV and that you prefer watching TV to listening to music. If these are your only 3 choices, what are the trade-offs of reading?
Watching TV AND Listening to Music
Watching TV
Listening to Music
The Price of the book
Freedom of choice and competition are most commonly associated with which type of economic system?
Command
Free Market
Traditional
Communist
In a command economy, the role of the government is to
Make major economic decisions
Promote competition
Encourage entrepreneurs
Meet the needs and wants of consumers
Which of the following is a common role of government in a mixed economy?
Guarantee that all incomes are equal
Prevent regulators from interfering with markets
Provide public goods
Set production quotas
Which of the following lists the three basic economic questions?
What to produce, How to produce, Why to produce
When to produce, For whom to produce, How to produce
Where to produce, For whom to produce What to produce
What to Produce, How to produce, For whom to produce
The way in which a society answers the three basic economic questions determines its:
Market Structure
Political system
Marketing system
Economic system
Which term below is a command economy most commonly associated with?
Capitalism
Government regulation
Competition
Private property
The concept of the invisible hand refers to which of the following?
Congress passing a new law
Government regulation
Individuals seeking their own self-interests
The Federal Reserve adjusting interest rates
A mixed economy allocates resources through
demand, but not supply.
by bartering.
government directives only.
supply, demand, and government intervention.
How are public goods and public assistance programs paid for in the United States?
Profits earned by corporations
Tax revenue collected from consumers and producers
Charitable donations
Income earned from the sale of stocks
Congress passed a new law that taxing car producers based on the amount of pollutants their plants released into the atmosphere. This new law is an example of which role of government?
Discouraging negative externalities
Promoting competition in the market
Protecting consumers
Preventing labor unions
Congress moved to pass a new antitrust law (anti-monopoly). This new law is an example of which role of government?
Discouraging negative externalities
Promoting competition in the market
Protecting the environment
Preventing labor unions
What is the free-rider problem?
scarcity even when you pay for a good
Reaping all the benefits without contributing
Common goods that don't have a price
none of the above
What statement best explains why the government provides goods and services to its citizens?
To provide benefits to small groups of people in certain areas of the country.
To provide goods and services that would not be available if individuals had to provide them.
To compete with businesses in the private sector.
To make a large profit by providing certain goods and services to its citizens.
The part of the economy that involves the transactions of the government.
Private sector
Free rider
Public sector
Externality
The part of the economy that involves the transactions of individuals and businesses.
Public sector
Externality
Private sector
Public good
An example of a public good is...
Firefighters
police officers
parks
all of thee above
Which law bans monopolies?
Tea Act
Anti-Trust Act
Townsend Act
Monopoly Act
What prevents businesses from charging extremely high prices in the free market system?
Monopolies
Negative Externalities
Competition
Positive Externalities
What are the 5 basic types of loans?
Automobile
Payday
Mortgage
Federal/Student
Small Business
What does principle stand for?
% the lender charges you for borrowing the money.
the amount of money being borrowed.
time given to pay back the loan.
Assets you put up against the loan as a safeguard for the lender against defaulted payments.
Interest Rate?
% the lender charges you for borrowing the money.
the amount of money being borrowed.
time given to pay back the loan.
Assets you put up against the loan as a safeguard for the lender against defaulted payments.
Loan Term?
% the lender charges you for borrowing the money.
the amount of money being borrowed.
time given to pay back the loan.
Assets you put up against the loan as a safeguard for the lender against defaulted payments.
What is Collateral?
% the lender charges you for borrowing the money.
the amount of money being borrowed.
time given to pay back the loan.
Assets you put up against the loan as a safeguard for the lender against defaulted payments.
This type of loan is Not backed by collateral. Higher interest rates. More risky.
unsecured loan
secured loan
This type of loan is Protected by collateral. Lower interest rates. Less risky.
unsecured loan
secured loan
Fixed Rate is?
if you default on your payments your co-signer is responsible for the payments.
not being able to make a payment or payments.
Stays the same throughout the duration of the loan term. Predictable with higher interest rates.
Can fluctuate depending on the index. Unpredictable with lower interest rates.
Variable Rate is?
if you default on your payments your co-signer is responsible for the payments.
not being able to make a payment or payments.
Stays the same throughout the duration of the loan term. Predictable with higher interest rates.
Can fluctuate depending on the index. Unpredictable with lower interest rates.
What is a Co-Signer?
if you default on your payments your co-signer is responsible for the payments.
not being able to make a payment or payments.
Stays the same throughout the duration of the loan term. Predictable with higher interest rates.
Can fluctuate depending on the index. Unpredictable with lower interest rates.
What does it mean to default on your loan?
if you default on your payments your co-signer is responsible for the payments.
not being able to make a payment or payments.
Stays the same throughout the duration of the loan term. Predictable with higher interest rates.
Can fluctuate depending on the index. Unpredictable with lower interest rates.
When applying for an automobile loan, the lender will check what 3c's?
Credit
Collateral
Capital
checks
When refinancing a loan, what two things usually happen?
Lower Interest Rates
Lower Monthly Payments
Higher Interest Rates
Higher Monthly Payments
What does FAFSA stand for?
Free Application For Federal Student Aid
Free Appliance of Federal Student Aid
Free Aid For Student Assistance
For Aid of Federal Student Applications
Unsubsidized loans acquire interest during your time in school, once you have been out of school for 6 months then there will be interest added to your loan payments. Therefore you will be paying interest on your interest and loan.
True
False
Perkins loans have a fixed rate of interest and start how many months after you complete school?
8
9
7
6
What is it called when you combine your federal student loans when you refinance?
Combining
Consolidation
Gathering
Minimizing
If you enroll in IBR how long will your term be? Select ALL right answers.
20 years
10 years if you work for a non-profit
15 years
5 years
If you are going to refinance your student loans what is one thing you should make sure before you do it?
That it will decrease your monthly payments
That it will lead to forbearance
That your Credit Score is above 700
That your Credit Score is below 700
What is a con of refinancing your student loans
It lowers your interest rate
You no longer qualify for IBR
It could decrease your payment length
What is a mortgage?
is an unchanging rate charged on a liability, such as a loan or mortgage.
is a loan from a bank that a person can use to finance the purchase of a house.
The amount of money a person pays upfront on a loan/payment.
s a type of loan where the interest changes according to changes in market interest rates.
What is a Down Payment?
is an unchanging rate charged on a liability, such as a loan or mortgage.
is a loan from a bank that a person can use to finance the purchase of a house.
The amount of money a person pays upfront on a loan/payment.
s a type of loan where the interest changes according to changes in market interest rates.
What is equity?
is the length of time it takes a borrower to repay a loan.
is the period of time in which it's possible to repay the loan making regular payments.
is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor.
is ownership of assets that may have debts or other liabilities attached to them.
What is debt?
is the length of time it takes a borrower to repay a loan.
is the period of time in which it's possible to repay the loan making regular payments.
is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor.
is ownership of assets that may have debts or other liabilities attached to them.
Most common type of mortgage loan is :
Conventional
FHA
USDA
VA
PMI or Private Mortgage Insurance is?
Interest Rate
Insurance that protects the lender not you.
Insurance that protects you from hidden costs
Home owners insurance
