WorksheetsEconomics Final Exam Review
Total questions: 65
Worksheet time: 35mins
Anything that helps in the process of production of a commodity or service is __________________.
Capital
Wealth
Factors of Production
Labour
Which of the following does Economics primarily study?
how scarcity can be eliminated
how firms manipulate prices
how government influences resource allocation decisions
the problem of scarce resources relative to human wants
If you decide to study an extra hour tonight, what would be the economic outcome?
The marginal cost of studying an extra hour exceeds its marginal benefit.
The marginal benefit of studying an extra hour exceeds its marginal cost.
Studying harder will always improve your test scores.
You will most likely get a lower than expected grade on your last exam.
Refer to the production possibilities diagram for the following Question.
Production of which of the points in the diagram is currently unattainable given the economy's resources?
Point A
Point B
Point C
Point D
Margaret decides to stay home and study for her exam rather than going out to a movie with her friends. Which of the following best reflects her dilemma?
The economic perspective
Marginal analysis
Opportunity cost
Allocative efficiency
Refer to the diagram of a circular flow model of the economy for the following question.
What best represents consumer expenditures in the diagram?
Flow 1
Flow 2
Flow 3
Flow 4
What is the most likely the result of human specialization or the division of labor?
It reduces output by dehumanizing workers
It reduces output by discouraging workers from learning a wide variety of tasks
It increases output by enabling workers to take advantage of differences in their skills
It increases output by allowing workers to each perform a wide variety of tasks
Define "incentive."
The cost of producing a good or service
The fact that human wants are unlimited but resources are limited
Something that motivates someone to do or not do something
The price charged for a good or service
______________ advantage refers to the ability of an individual or group to do something at a lower opportunity cost than another individual or group
Absolute
Competitive
Comparative
Product
Opportunity Cost
_____________ advantage refers to the ability of an individual or group to do something better overall than another individual or group.
Absolute
Comparative
Competitive
Superior
Product
The problem of unlimited desires and limited resources is the problem of
wants
marginal benefit
scarcity
free enterprise
According to the _____, quantity demanded and price move in opposite directions.
law of demand
demand curve
demand schedule
market demand
In a ____, most economic decisions are made by individuals looking out for their own interests.
free exchange
market economy
privatized economy
socialist market
When economists look at supply and demand schedules and/or supply and demand curves, what are the only two variables examined?
Price and Demand
Price and Supply
Price and Quantity
Price and Equilibrium Point
A _____ is a graph that lists prices on the vertical axis and quantities on the horizontal axis.
demand curve
market demand
utility demand
demand schedule
A ____ is a chart or table showing quantities supplied at different possible prices.
supply schedule
supply curve
market table
profit graph
What is the term for the principle that suppliers will normally offer more for sale at higher prices and less at lower prices?
law of supply
supply schedule
law of demand
market demand
____ is the struggle between buyers and sellers to get the best products at the lowest prices.
Competition
Productivity
Free enterprise
Economic freedom
When a new producer of soap enters the market, and the supply curve shifts to the right, which determinant of supply shift is this an example of?
Number of Sellers
Subsidies
Producer Expectations
Input Costs
The graph below is an example of a
Demand Schedule
Demand Curve
Supply Schedule
Supply Curve
The table below is an example of a
Supply Schedule
Supply Curve
Demand Curve
Demand Schedule
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”
All of these are functions of money EXCEPT
Medium of exchange
Store of value
Commodity money
unit of measurement
A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?
inflation
recession
The percentage of a deposit that a bank must hold on to is called the ______.
Reserve Requirement
Credit
The Fed does not
print money
regulate banks
serve as a lender of last resort
control the money supply
Which of the following statements is TRUE according to the Simple Quantity Theory of Money?
an increase in the money supply will cause inflation
an decrease in the money supply will cause inflation
an increase in the quantity of goods purchased will cause inflation
inflation is only caused by changes in the weather
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
What do you call an economic policy that is designed to influence the aggregate demand in order to control the economy?
Spending policy
National policy
Fiscal policy
Monetary policy
It shows the cycle of goods and services in an economy.
Circular flow of goods
Circular flow of money
Circular flow of the economy
Circular flow of resources
This happens when there is an increase in the production of goods and services.
Economic Development
Economic Progress
Economic Growth
Economic efficiency
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
It is the measure of national output that adjusts GNP to account for price changes.
nominal GNP
potential GNP
real GNP
actual GNP
What is the relationship between risk and return when it comes to investments?
Lower Risk = Higher Reward
Higher Risk = Lower Reward
Lower Risk = Lower Reward
Check all that apply...Which of the following are services offered by both banks and credit unions.
Checking Accounts
Savings Accounts
Roth IRAs
Credit Cards
What is a benefit of investing in Mutual Funds?
Bonds are a safe investment
stock prices change too often
diversification of investment
Fund Managers know more about investment
Check all that apply....What is an advantage of using a Credit Union?
Lower interest rates on loans
higher interest rates on savings
Greater access to your accounts nationwide
Better technology for your financial needs
True or False....Consumers will borrow more money from banks and credit unions when interest rates increase.
True
False
Which type of tax is the best example of a regressive tax?
Sales Tax
Income Tax
Property tax
Corporate tax
Ms. Christopher wants to buy a new house. Which of the following is most likely to be seen as a positive from her credit history?
She has zero late payments
She has three open lines of credit
other credit agencies have pulled her credit rating 3 times this month
Mr. Holbrook just bought a new car. What is the collateral for the car loan?
His home.
The money in his savings account.
The car.
His collection of antique stamps.
Which of the following is the best investment for tax free growth?
401k
403b
Roth IRA
Mutual Fund
In terms of insurance...What is the relationship between premium price and deductible?
Higher premium = higher deductible
lower premium = lower deductible
Lower premium = higher deductible
Billy is physically injured when he gets into a car accident and cannot work for 6 weeks. Which type of insurance would most likely not be used in this scenario?
Health
Auto
Disability
Homeowners
Which of the following is most likely to result in increased earning potential?
higher level of training and skill development.
length of time spend at the same company
taking more vacation day.
Name two benefits the Kia Rio has over the Ford Mustang
Fewer Miles and Lower Price
Lower Price and Better Safety
Better Reivews and Newer Model
Better Safety and better reviews
The end of the year is here. The Media Center is charging fines to students who have not returned books. This is an example of which of the following?
Positive Incentive
Negative Incentive
Positive Expectations
Scarcity
Coach Queen offered to make his classes BBQ if the class average on a test was an 80. What is this an example of?
Positive Incentive
Negative Incentive
Expectations
Opportunity Cost
In order to best control spending you should keep track of monthly expenses by preparing a.....?
Budget
Deficit
Debt Plan
Roth IRA
