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ECON Final Exam Quizizzes

Total questions: 195

Worksheet time: 3hrs 53mins

Name
Class
Date
1.

A saving account in a bank represents the function of money:

a)

Store of value

b)

A medium of exchange

c)

A standard for deferred payments

d)

A measure of value

2.

Choose the most accurate definition of "money".

a)

Money is anything generally accepted in payment for goods or services or in the repayment of debts.

b)

Money is anything recognized in trading and transaction for goods.

c)

Money is legal currency that is released by banks to satisfy the financial needs of the people.

3.

A medium of exchange is_______

a)

something that is generally acceptable in exchange for goods and services

b)

a legally recognized asset that is generally accepted in exchange for goods and services.

c)

something that circulates and provides a standardized means of evaluating the relative price of goods and services.

d)

The ability of money to command purchasing power in the future

4.

1 of 3 functions of money allowing people to preserve value for future use.

a)

Store of value

b)

Divisibility

c)

Portability

d)

Measure of value

5.

1 of the 3 functions of money that allows it to serve as a common denominator to measure value.

a)

Measure of value

b)

Store of value

c)

Divisibility

d)

Medium of exchange

6.

All of the following are among the 6 characteristics of money EXCEPT:

a)

Acceptability

b)

Domesticity

c)

Scarcity

d)

Portability

e)

Divisibility

7.

An example of commodity money is:

a)

Wampum Belts

b)

The US Dollar

c)

Gold/silver coins

8.

An example of Commodity-Backed Money is:

a)

The modern US Dollar

b)

Gold and silver coins

c)

The US Dollar on the Gold Standard

d)

Cocoa beans

9.

Fiat money is different from other forms of money because:

a)

Fiat money has no value on its own, and is only worth anything because it is commonly accepted

b)

Fiat money has high value on its own, but its value is degraded through trade

c)

Fiat money is backed by physical goods with real value - e.g. gold

10.

I'm an institution which performs the function of accepting deposits, lending funds & making an investment with the main aim of profit maximization.


What am I?

a)

Commercial Bank

b)

Central Bank

c)

Government

d)

None of these

11.

A _____________ consists of checks, currency, or coins put into a bank account.

a)

direct deposit

b)

ATM

c)

deposit

d)

checking account

12.

The amount of money that the lender lends to the borrower is called ....

a)

principal

b)

tenure

c)

default

d)

collateral

13.

The principal that banks lend to businesses is ....

a)

auto loans

b)

commercial loans

c)

personal loans

d)

application loans

14.

Money lent to an individual for personal or family purpose.

a)

Consumer Loan

b)

Business Loan

c)

Stock Index

d)

Par Value

15.

Money lent specifically for a business purpose.

a)

Stock

b)

Business Loan

c)

Consumer Loan

d)

Bond

16.

Money lent specifically for purchasing a home

a)

Stock

b)

Business Loan

c)

Consumer Loan

d)

Mortgage Loan

17.
"The Fed" refers to the....
a)
Federal Bureau of Investigation
b)
Federal Government
c)
Federal Reserve System
d)
Federal Income Tax
18.

Influencing the economy by changing the overall supply of money is called:

a)
Fiscal policy
b)
Monetary policy
c)
Tight Money
d)
Easy Money
19.

Which of the following investment options has the LOWEST risk?

a)

Mutual Funds

b)

Government bonds

c)

Corporate Bonds

d)

Stocks

20.

Which of the following investment options has the HIGHEST possible returns?

a)

Mutual Funds

b)

Government bonds

c)

Corporate Bonds

d)

Stocks

21.

How does product differentiation promote global trade?

a)

Some countries produce unique versions of products you can't get anywhere else

b)

Non-specialized nations will not trade non-differentiated goods

c)

Differentiation makes economic activity sustainable

22.

A business owned and operated by only one person

a)

Partnership

b)

Sole Proprietor

c)

Cooperative

d)

Limited Liability Company (LLC)

23.

Sole Proprietors have ______ for any debts or losses incurred by their business

a)

limited liability

b)

no liability

c)

50% liability

d)

unlimited liability

24.

A business owned and operated by two or more co-owners

a)

Partnership

b)

Sole Proprietor

c)

Corporation

d)

Limited Liability Company (LLC)

25.

A business owned by many shareholders, who do not have direct responsibility for its debts

a)

Partnership

b)

Sole Proprietor

c)

Corporation

d)

Limited Liability Company (LLC)

26.
What is a franchise?
a)

Where a business sells the right to produce and sell their brand to another

b)
Where you have full control
c)
Where you keep all the profits
27.

A worker with little to no professional experience or training is considered:

a)

Unskilled

b)

Semi-Skilled

c)

Skilled

d)

Professional

28.

what is Human Capital?

a)

Money Assets of a Company

b)

Immigration of people into America

c)

Treating yourself to a nice dinner

d)

A worker's skill, knowledge, and experience

29.

An organization of workers dedicated to protecting members' interests and improving wages, hours and working conditions for all.

a)

Labor Union

b)

Workers Rights

c)

Worker Strikes

d)

Collective Bargaining

30.

Which of the following is a major disadvantage of sole proprietorships?

a)

Limited Liability

b)

Unlimited Liability

c)

Lack of control

d)

High government regulation

31.

Which of the following types of bank accounts offers the HIGHEST returns in the form of interest?

a)

Timed

b)

Checking

c)

Savings

32.

Which of the following types of bank accounts has the HIGHEST liquidity?

a)

Timed

b)

Checking

c)

Savings

33.

Which of the following types of cards involves paying with YOUR money (rather than the bank's)?

a)

Credit

b)

Debit

34.

In finance, interest refers to...

a)

Additional charges on the initial amount borrowed

b)

Money received by the bank as part of all deposits

c)

The desire of banks to retain customers

d)

Money that comes directly from a checking account, rather than from credit

35.

Which of the following types of bank accounts has the LOWEST liquidity?

a)

Timed

b)

Checking

c)

Savings

36.

In response to an economic recession, a Keynesian economist might suggest...

a)

Increased spending on government projects, to provide jobs and stimulate the economy

b)

Decreased spending on government projects, to cut down on national debt

c)

Ordering the Fed to print greater amounts of money, to stimulate the economy

d)

Providing a tax cut for the largest corporations, to promote job creation by big businesses

37.
Your returns (or interest rate) are 8% a year. How long before your investment doubles?
a)
9 years
b)
8 years
c)
7 years
d)
Never
38.

The _______ considers the weighted averages of a group of consumer goods and services.

a)

Consumer price index

b)

Aggregate supply

c)

Producer price index

d)

Aggregate demand

39.
When inflation is high the _______________of the dollar decreases
a)
cost value
b)
purchasing power
c)
importance
d)
validity
40.

If operators are fired and replaced with computer technology, the operators would be considered

a)

frictionally unemployed

b)

structurally unemployed

c)

cyclically unemployed

d)

dissatisfiededly unemployed dissatisfiededly unemployed

41.

Cyclical unemployment

a)

Describes recent college graduates

b)

Lasts longer than 6 months

c)

Describes employees moving from one job to another

d)

Increases inflation Increases inflation

42.

The unemployment rate is the ratio of

a)

People seeking jobs unemployed to labor force

b)

People seeking jobs employed to labor force

c)

People seeking jobs divided by total labor force

d)

dissatisfied to labor force

43.

The unemployment rate will drop if

a)

A person is hired into a new job

b)

Someone who was previously laid off is rehired

c)

An unemployed person stops looking

d)

ALL of these answers are CORRECT

44.

Which of these people is officially unemployed

a)

A secretary who took 6 months off for maternity leave

b)

An aspiring actress who waits tables but would rather act

c)

Maid who got fired and will start a new job in 2 weeks

d)

A student who only works 4 hours a week in the library

45.
What type of GDP is calculated with the current year's prices?
a)
Nominal GDP
b)
Real GDP
c)
GDP per capita
46.
High levels of GDP per capita indicate...
a)
Higher levels of happiness 
b)
Higher standard of living
c)
Equal levels of wealth 
d)
Self-sufficient communities
47.
Government closes schools for the month of March.
a)
GDP decreases
b)
GDP increases 
c)
No change
48.
Expectant parents buy supplies for the nursery.  Would this be included in GDP? 
a)
Yes - Consumer Spending
b)
Yes - Investment 
c)
No - Intermediate goods
d)
No - Non-market activity
49.
GDP is calculated by
a)
adding up the cost of goods used in producing the item
b)
subtracting all costs from total revenue
c)
adding consumption + investment +government spending+ (exports sold - imports bought)
50.

If an economy is at its Natural Rate of Unemployment...

a)

Only Cyclical Unemployment would be present

b)

There would be no frictional unemployment

c)

Only frictional and structural unemployment would be present

d)

Everyone is working Everyone is working

51.

If operators are fired and replaced with computer technology, the operators would be considered

a)

frictionally unemployed

b)

structurally unemployed

c)

cyclically unemployed

d)

dissatisfiededly unemployed dissatisfiededly unemployed

52.

Which of the following best defines unemployment?

a)

The state of being able to work and actively seeking work, but unable to find employment

b)

The state of being able to work, but choosing not to

c)

The percentage of the labour force that is able and actively seeking work, but cannot find employment

d)

The total number of people who do not work

53.

When individuals lose jobs due to fall in aggregate demand, often during an economic recession.

a)

Structural Unemployment

b)

Cyclical Unemployment

c)

Frictional Unemployment

d)

Seasonal Unemployment

54.

Which of the following is not in the labor force?

a)

Charles, who wants to work but has given up looking for work until the weather improves.

b)

Mary, who works part-time but wishes for work full time.

c)

John, who has a graduate degree but is working as a waiter.

d)

Carl, who does not have work but applied for work at a local factory.

e)

Melissa, who just graduated from business school and is currently seeking employment as an accountant.

55.

What type of unemployment is a person experiencing when they are laid off during a recession?

a)

Frictional

b)

Seasonal

c)

Cyclical

d)

Structural

56.

In order to measure the rate of inflation, it is necessary to measure the rate at which prices:

a)

differ

b)

increase

c)

decrease

d)

change

57.

Inflation takes place when prices, on average:

a)

fall

b)

fluctuate

c)

remain the same

d)

rise

58.

Which of the following are the 8 major groups of the Consumer Price Index?

a)

Housing, food, apparel, transport, healthcare, recreation, education/communication, and misc.

b)

Employment, food, apparel, transport, dental care, recreation, education/communication, and misc.

c)

Pets/service animals, food, dating, vacationing, recreation, video games, water, travel

d)

Business investments, food, apparel, transport, childcare, recreation, education/communication, and misc

59.

What causes Cost-Push inflation?

a)

An increase in demand for goods and services

b)

An increase in supply

c)

A rise in production costs passed on to consumers

d)

A fall in the price of imports

60.

What the definition of deflation?

a)

decrease in the average price of goods and services

b)

occurs when the price of goods and services rise

c)

the amount one dollar can buy is reduced

61.

__________ occurs in the economy when unemployment and inflation are both high.

a)

Hyperinflation

b)

Disinflation

c)

Deflation

d)

Stagflation

62.

The Laffer Curve suggests that tax rates that have been set too high will _____ overall tax revenue.

a)

increase

b)

reinforce

c)

decrease

d)

nullify

63.

The belief the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation.

a)

Keynesian Economics

b)

Supply-Side Economics

c)

Monetary Policy

d)

Fiscal Policy

64.

Managing the economy by altering the supply of money and interest rates.

a)

Keynesian Economics

b)

Supply-Side Economics

c)

Monetary Policy

d)

Fiscal Policy

65.

Which theory believes the economy should be controlled through Money Supply

a)

Classical

b)

Keynesian

c)

Monetarism

d)

Austrian

66.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)

it is not affected

67.
For the law of supply, as price rises, what happens to quantity supplied?
a)
it goes up
b)
it goes down
c)
it stays the same
d)

it is not affected

68.
If a price is above equilibrium price, it creates a...
a)
shortage
b)
surplus
c)
market price
d)
demand
69.
If a price is below the equilibrium price it creates a...
a)
shortage
b)
surplus 
c)
market price 
d)
supply
70.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
71.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
72.
What is the Equilibrium Price?
a)

$1

b)

$2

c)

$3

d)

$4

73.
What is the Equilibrium Quantity?
a)
50
b)
60
c)
70
d)
80
74.

When quantity supplied is smaller than quantity demanded, you have a ____________.

a)

shortage

b)

surplus

c)

deficit

d)

equilibrium

75.
Equilibrium in a market means which of the following?
a)
the point at which quantity supplied and quantity demanded are the same
b)
the point at which unsold goods begin to pile up
c)
the point at which suppliers begin to reduce prices
76.
Why does no one firm dominate in a perfect competition?
a)
No firm wants to
b)
Each firm sells to different people
c)
Each firm produces so little of the total supply that they cannot influence prices
d)
One firm will eventually dominate and make it a monopoly
77.
Factors that make it difficult for new firms to enter a market are called
a)
Barriers to entry
b)
Factors of production
c)
Limited supply
d)
Monopolistic Outlook
78.

What prevents firms from entering a monopoly?

a)

Barriers to Entry

b)

Technology

c)

Price

d)

Barriers to Travel

79.
Businesses can "Collude" or work together to set prices
a)
Oligopoly
b)
Monopoly
c)
Perfect Competition
80.
Choose the example that goes best with an oligopoly.
a)
apples
b)
cell phone providers
c)
utilities
d)
clothing
81.

Which of the following industries is an example of a monopoly?

a)

utilities/water

b)

department stores

c)

auto industry

d)

commercial airlines

82.
The jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product)
a)
monopoly
b)
oligopoly
c)
perfect competition
d)
monopolistic competition
83.

A market that has a few sellers of basically the same goods.

a)

Perfect Competition

b)

Pure Monopoly

c)

Monopolistic Competition

d)

Oligopoly

84.

Using the pizza store graphic, what market structure best fits the pizza industry?

a)

Monopoly

b)

Oligopoly

c)

Perfect competition

d)

Monopolistic competition

85.

In this market, the producer is the least responsive to buyers' needs and wants.

a)

Perfect Competition

b)

Pure Monopoly

c)

Monopolistic Competition

d)

Oligopoly

86.

If a single firm raises its price it will not be able to sell any of its output.

a)

Perfect Competition

b)

Pure Monopoly

c)

Monopolistic Competition

d)

Oligopoly

87.

When firms agree to charge the same or similar prices for a product, this is known as

a)

price-fixing

b)

independent behavior

c)

natural monopoly

d)

laissez-faire

88.

Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies have a little control over the price and there are relatively low barriers to entry.

a)

perfect competition

b)

monopolistic competition

c)

oligopoly

d)

monopoly

89.
List the four market structures in order from least competitive to most competitive.
a)
Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
b)
Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
c)
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
d)
Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly
90.

If a firm can change market prices by altering its output, then it

a)

Has market power.

b)

Faces a flat demand curve.

c)

Is a price taker.

d)

Engages in marginal cost pricing

91.

ability of a company to control prices and total market output

a)

market power

b)

price discrimination

c)

license

d)

government monopoly

92.

Market failure occurs whenever

a)

free markets fail to distribute resources efficiently.

b)

goods fail to arrive at a market in a timely fashion.

c)

government builds infrastructure.

d)

voluntary exchange in a market fails to result in a sale.

93.

When companies that form on oligopoly cooperate together to set or fix prices at a given level, they are engaging in

a)

Monopoly

b)

Vertical Integration

c)

Collusion

94.

Graph shows which of the following?

(actually use this graph to answer the question)

a)

a decrease in demand (shift) and a decrease in quantity supplied

b)

a decrease in demand (shift) and a decrease in supply

c)

a decrease in quantity demanded and a decrease in quantity supplied

d)

a decrease in quantity demanded and a decrease in supply (shift)

95.

Which of the following is NOT a determinant of the supply of peanut butter?

a)

The price of peanuts

b)

The wages of peanut butter factory workers

c)

The income of peanut butter consumers

d)

Existing peanut butter making technology

96.

Which of the following will cause an increase in demand for snowboards?

a)

More costly production methods

b)

A decrease in the price of lift tickets at resorts in Colorado

c)

A decrease in consumer income

d)

A decrease in the population

97.

What does a “surplus” (extra amount) of goods in a market imply?

a)

Prices are too high

b)

Prices are too low

c)

Supply is too low

d)

Demand is too high

98.

Americans revive their love of SUV’s and the newly remodeled, but still “gas guzzling” Hummer. What happens to the market for gasoline?

a)

Demand for gasoline will decrease

b)

Demand for gasoline will increase

c)

Demand for gasoline will stay the same

99.

In an attempt to increase the production of oil and gasoline, Congress and the President have given the okay to drill in the Alaskan Arctic Preserve. What happens to the market for gasoline?

a)

Supply for gasoline will decrease

b)

Supply for gasoline will increase

c)

Supply for gasoline will stay the same

100.

Which of the following defines "Complementary Goods?"

a)

Goods that can be used to replace the purchase of similar goods when prices rise

b)

Goods that are commonly used with other goods

c)

Goods that are independent of other markets

101.

If only the price for a good or service changes, does the demand curve shift? Why or why not?

a)

Yes, Price shifts the demand curve to the right because less people are being goods

b)

Yes, Price shifts the demand curve to the left because more people are buying goods

c)

No, Because price does not shift the curve. Price stays on the line

d)

No, because price does not impact the points on the curve

e)

Yes and No. The price shifts the curve sometimes, but not always

102.

What is being represented by the "red flow line"

a)

The flow of money

b)

The flow of goods and services

c)

Taxes

d)

Productive resources

103.

Scarcity is a problem:

a)

that only poor people face.

b)

because human wants are limited while resources are unlimited.

c)

because human wants are unlimited while resources are limited.

d)

only in third world countries.

104.

Labour, land and capital are called:

a)

goods and services.

b)

entrepreneurship.

c)

outputs.

d)

factors of production.

105.

The three basic categories of resources are land, labour and:

a)

money.

b)

time.

c)

energy.

d)

capital.

106.

The central question in economics is how to:

a)

deal with the problem of scarcity.

b)

change government economic policy.

c)

change people’s wants to match their needs.

d)

manage money and become wealthy.

107.

The most fundamental concepts underlying the discipline of economics are:

a)

scarcity and making an efficient choice.

b)

supply and demand.

c)

money, stocks and bonds.

d)

inflation and unemployment.

108.

Which of the following is a microeconomics topic?

a)

The unemployment rate.

b)

The inflation rate.

c)

The economy’s growth rate.

d)

The price of apples.

e)

Forecasts of a recession next year.

109.

What is macroeconomics about?

a)

It is about economic growth

b)

It is about inflation

c)

It is about unemployment

d)

All above

110.

Production possibilities frontier analysis allows us to identify:

a)

minimum possible combinations of goods and services.

b)

ways to eliminate scarcity.

c)

total benefits of production.

d)

inefficient production.

111.

The production possibilities frontier shows that:

a)

scarcity can be eliminated.

b)

all output combinations are possible

c)

an economy that is operating efficiently can have more of one good without giving up some of another good.

d)

some of one good must be given up to get more of another good in an economy that is operating efficiently.

112.

Which of the following moves from one point to another in Exhibit 2.7 would represent an increase in economic efficiency?

a)

Z to W.

b)

W to Y.

c)

Z to X.

d)

X to W.

113.

Opportunity cost can be defined as:

a)

The amount of money you paid for something

b)

The HIGHEST valued alternative that you give up for a good (the next best thing)

c)

The cost of giving up everything to obtain a good

d)

The LOWEST valued alternative that you give up for a good (the bad decisions)

114.

Economic decision to use one more additional unit of a resource

a)

Thinking at the Margin

b)

Incentives Matter

c)

Trade Makes People Better Off

d)

Future Consequences Count

115.

I only have an hour of free time today. If I study, I can't see my friends.

a)

Costs versus Benefits

b)

Thinking at the margin

c)

Incentives Matter

d)

Future Consequences Count

116.
I thought it was a good idea to get a dog. I didn't know it would drive my neighbors crazy.
a)
Costs versus Benefits
b)
Scarcity Forces Tradeoffs
c)
Incentives Matter
d)
Future Consequences Count
117.

Should I spend thousands of dollars on college? Would it be worth it?

a)

Markets Coordinate Trade

b)

Costs vs Benefits

c)

Trade Makes People Better Off

d)

Thinking at the Margin

118.

Amateur investors banded together this week to squeeze Wall Street hedge funds by sending GameStop’s stock prices to dizzying heights.

a)

Costs vs Benefits

b)

Trade Makes People Better Off

c)

Future Consequences Count

d)

Markets Coordinate Trade

119.
 I don't know how to fix my car, but I can pay a mechanic to do it.
a)
Future Consequences Count
b)
Incentives Matter
c)
Markets Coordinate Trade
d)
Trade Makes People Better Off
120.

A lot of mothers cannot afford to stay home with their children because they have to work to help pay for costs of living, the choice they make to go to work forces them to give up time and nurturing of their children.

a)

Thinking at the Margin

b)

Costs vs Benefits

c)

Scarcity Forces Tradeoffs

d)

Future Consequences Count

121.

Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?

a)

Shoes

b)

Jacket

c)

Dress

d)

Purse

122.

Tom was shopping for a car. He has looked at a Ford, Honda, Toyota, and Dodge. After a lot of debate, he narrowed it down to either the Ford or the Honda. He selected the Ford, because he liked the interior a little better. What was his opportunity cost?

a)

Ford

b)

Honda

c)

Toyota

d)

Dodge

123.

The seatbelt law has helped protect drivers and passengers, but now there has been increase in pedestrian and cycle deaths. Why? Well maybe drivers feel more secure and therefore drive more aggressively.

a)

Thinking at the Margin

b)

Costs vs Benefits

c)

Scarcity Forces Tradeoffs

d)

Future Consequences Count

124.

The satisfaction gained from using one more unit of a good or service is called

a)

marginal utility

b)

marginal cost

c)

opportunity cost

d)

opportunity benefit

125.

Brandon is hungry, so he orders a pizza. When he eats the first slice of pizza, he feels fuller and happier. By the time he eats the last slice, he feels sick and bloated. What economic law is being demonstrated?

a)

Law of Diminishing Marginal Utility

b)

Law of Cosines

c)

Rule of Law

d)

Law of Magna Carta

126.

Which of the Factors of Production is being used to make the pencil?

(a)  

127.

Why do many economists believe private ownership leads to more productive businesses than public ownership?

a)

People tend to take better care of goods they own

b)

People have more government protections as a private business than within the public sector

c)

Infrastructure can only be developed by private businesses

d)

Private businesses have more human capital

128.

Upton Sinclair's novel The Jungle revealed worker abuses and unsanitary practices and helped lead to the creation of the Food and Drug Administration. The government's creation of the FDA demonstrates the importance of _______ in a mixed-market economy

a)

Regulations

b)

Taxes

c)

Laissez-Faire economics

d)

Reaganomics

129.

What is one advantage of a Command Economy?

a)

Individual freedom for everyone

b)

Health and public services are available to everyone at little or no cost.

c)

The government rarely interferes.

d)

Able to adjust to change gradually

130.

What is a Command Economy?

a)

CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

b)

An economic system COMBINING private and public enterprise.

c)

When production, investment, price, and income are determined centrally by a GOVERNMENT.

d)

A system that relies on customs, history, and time-honored beliefs.

131.

What is one disadvantage of a Command Economy?

a)

Requires large bureaucracy, which consumes resources

b)

Lower standard of living

c)

Does not produce enough public goods

d)

Workers and businesses face uncertainty as a result of competition and change.

132.

The limited amount of resources available

a)

Resource

b)

Competition

c)

Scarcity

d)

Cost

133.

The benefit you give up by choosing to do one thing instead of another.

a)

Scarcity

b)

Consumer

c)

Market

d)

Opportunity Cost

134.

What is standard of living?

a)

is a measure of the minimum amount of money thought to be adequate for life

b)

A measure of how well off the people are in a country

c)

A lack of money and basic necessities needed for life

135.

Which of the following is NOT one of the three fundamental economic questions?

a)

For whom are goods and services produced?

b)

What goods and services will be produced?

c)

How will we decide who is a citizen?

d)

How will goods and services produced?

136.

Traditional economies rely heavily on __________ to meet the needs of citizens.

a)

farming and agriculture

b)

farming and manufacturing

c)

manufacturing and agriculture

d)

agriculture and services

137.

The Soviet Union and North Korea are best described as...

a)

Command Economies

b)

Market Economies

c)

Mixed Economies

d)

Traditional Economies

138.

The United States is best described as having what type of economy?

a)

A Mixed Economy

b)

A Command Economy

c)

An Agrarian Economy

d)

A Traditional Economy

139.

Around 42% of Saudi Arabia's Gross Domestic Product each year comes from petroleum (oil). Saudi Arabia is an example of a(n) ______ economy.

a)

traditional

b)

specialized

c)

independent

d)

Juche

140.

Individuals and businesses pay ___ to the government to pay for public goods and services.

a)

interest

b)

deposits

c)

taxes

d)

income

141.

Which of the following best describes a goal of government in a mixed economy?

a)

Laissez-Faire; the gov't stays out of the economy as much as possible

b)

Outlawing unacceptable practices such as slavery

c)

Micro-managing every economic decision in the country

d)

Fixing prices to ensure the market never grows too strong.

142.
The concept that people may decide what and when they want to buy and sell goods & services
a)
voluntary exchange
b)
legal equality
c)
private property
d)
open opportunity
143.

What is opportunity cost?

a)

the value of the next best option that is not selected when a choice is made.

b)

there is not enough of it.

c)

things people make to earn money.

d)

actions people do to earn money.

144.

Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?

a)

fishing with a friend

b)

going to a concert

145.

Andrea has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?

a)

a trip to the beach

b)

a trip to the mountains

146.

Jason has been asked by his son to go ride 4-wheelers this weekend. His boss has asked him to work overtime and get paid double. Jason chooses to go ride 4-wheelers with his son. What is his opportunity cost?

a)

ride 4-wheelers with his son

b)

work overtime for his boss

147.
True or False: Everything that is scarce requires a choice, and these choices always involve a tradeoff.
a)
True
b)
False
148.
Labor, human capital, entrepreneurship, natural resources, and capital are all examples of which of the following?
a)
Outputs
b)
Substitutes in Production
c)
Absolute Advantage
d)
Factors of Production
149.
The simplified production possibilities curves for country A and B are shown. Which one of the following statements is correct?
a)
Country A has the comparative advantage in both goods
b)
Country A has the comparative advantage in chairs & Country B has the comparative advantage in shirts
c)
Country B has the absolute advantage in shirts only
d)
Country A has the comparative advantage in shirts & Country B has the comparative advantage in chairs
150.
Based on the table provided, which one of the following statements is correct?
a)
Japan has the absolute advantage in producing cars
b)
Japan has the comparative advantage in producing cars
c)
The United States has the absolute advantage in producing both cars and computers
d)
The opportunity cost of producing a car in Japan is 1/2 a computer
151.
Which of the following constitute the fundamental questions every economic system must answer?
a)
I, III, V only
b)
I, II, and IV only
c)
I, II, and V only
d)
II, IV, and V only
152.
When countries rely on each other for resources, goods, or services. 
a)
Specialization
b)
Interdependence
c)
Scarcity
d)
Trade
153.
To swap products with someone
a)
Trade
b)
Specialization
c)
Exchange rate
d)
Import
154.
When people trade because they both want what the other person has
a)
Trade barrier
b)

Voluntary Exchange

c)
International trade
d)
Free trade
155.
The driving force behind people going into business is
a)
profit margin
b)
profit motive
c)
opportunity cost
d)
taxes
156.
The concept that people have the right and privilege to control their possessions as they wish.
a)
legal equality
b)
open opportunity
c)
private property
d)
profit incentive
157.
The rivalry between sellers to get more customers by lowering costs & better goods/services
a)
voluntary exchange
b)
competition
c)
incentives
d)
legal equality
158.
This is the study of the behavior/decision making of entire economies, not individuals.
a)
microeconomics
b)
macroeconomics
c)
finite economics
d)
economic models
159.
This is the study of the behavior/decision making of individuals & businesses. 
a)
microeconomics
b)
macroeconomics
c)
recession
d)
expansion
160.
A shared good/service that government builds because it would be impractical for an individual 
a)
private good
b)
public good
c)
military good
d)
market failure
161.

The barter system is the exchange of goods and cash.

a)

True

b)

False

162.

An advantage of Barter is

a)

you can use money

b)

more goods can be acquired

c)

it is flexible in trading goods or services

d)

it is a quick process of trade

163.

The exchange of goods and services without the use of money ______.

a)

service

b)

consumer

c)

producer

d)

barter

164.

Trade is the exchange of goods and __________.

a)

business

b)

services

165.

Which of these is an exchange of a service?

a)

fixing your computer

b)

an iPhone

166.

Which of these is an example of a good?

a)

babysitting

b)

an iPad

167.

Before money was invented people had to _____.

a)

Barter

b)

Buy

168.

According to the Legal definiton,money is------

a)

what money does

b)

anything generally accepted as a medium of exchange.

c)

measure of value

d)

None of these

169.

Which among the following is a primary function of money?

a)

Store of value

b)

Transfer of value

c)

Medium of exchange

d)

Liquidity

170.

Scarcity is a problem:

a)

that only poor people face.

b)

because human wants are limited while resources are unlimited.

c)

because human wants are unlimited while resources are limited.

d)

only in third world countries.

171.

Labour, land and capital are called:

a)

goods and services.

b)

entrepreneurship.

c)

outputs.

d)

factors of production.

172.

The three basic categories of resources are land, labour and:

a)

money.

b)

time.

c)

energy.

d)

capital.

173.

The central question in economics is how to:

a)

deal with the problem of scarcity.

b)

change government economic policy.

c)

change people’s wants to match their needs.

d)

manage money and become wealthy.

174.

The most fundamental concepts underlying the discipline of economics are:

a)

scarcity and making an efficient choice.

b)

supply and demand.

c)

money, stocks and bonds.

d)

inflation and unemployment.

175.

Which of the following is a microeconomics topic?

a)

The unemployment rate.

b)

The inflation rate.

c)

The economy’s growth rate.

d)

The price of apples.

e)

Forecasts of a recession next year.

176.

What is macroeconomics about?

a)

It is about economic growth

b)

It is about inflation

c)

It is about unemployment

d)

All above

177.

Production possibilities frontier analysis allows us to identify:

a)

minimum possible combinations of goods and services.

b)

ways to eliminate scarcity.

c)

total benefits of production.

d)

inefficient production.

178.

The production possibilities frontier shows that:

a)

scarcity can be eliminated.

b)

all output combinations are possible

c)

an economy that is operating efficiently can have more of one good without giving up some of another good.

d)

some of one good must be given up to get more of another good in an economy that is operating efficiently.

179.

Which of the following moves from one point to another in Exhibit 2.7 would represent an increase in economic efficiency?

a)

Z to W.

b)

W to Y.

c)

Z to X.

d)

X to W.

180.

Opportunity cost can be defined as:

a)

The amount of money you paid for something

b)

The HIGHEST valued alternative that you give up for a good (the next best thing)

c)

The cost of giving up everything to obtain a good

d)

The LOWEST valued alternative that you give up for a good (the bad decisions)

181.

Economic decision to use one more additional unit of a resource

a)

Thinking at the Margin

b)

Incentives Matter

c)

Trade Makes People Better Off

d)

Future Consequences Count

182.

I only have an hour of free time today. If I study, I can't see my friends.

a)

Costs versus Benefits

b)

Thinking at the margin

c)

Incentives Matter

d)

Future Consequences Count

183.
I thought it was a good idea to get a dog. I didn't know it would drive my neighbors crazy.
a)
Costs versus Benefits
b)
Scarcity Forces Tradeoffs
c)
Incentives Matter
d)
Future Consequences Count
184.

Should I spend thousands of dollars on college? Would it be worth it?

a)

Markets Coordinate Trade

b)

Costs vs Benefits

c)

Trade Makes People Better Off

d)

Thinking at the Margin

185.

Amateur investors banded together this week to squeeze Wall Street hedge funds by sending GameStop’s stock prices to dizzying heights.

a)

Costs vs Benefits

b)

Trade Makes People Better Off

c)

Future Consequences Count

d)

Markets Coordinate Trade

186.
 I don't know how to fix my car, but I can pay a mechanic to do it.
a)
Future Consequences Count
b)
Incentives Matter
c)
Markets Coordinate Trade
d)
Trade Makes People Better Off
187.

A lot of mothers cannot afford to stay home with their children because they have to work to help pay for costs of living, the choice they make to go to work forces them to give up time and nurturing of their children.

a)

Thinking at the Margin

b)

Costs vs Benefits

c)

Scarcity Forces Tradeoffs

d)

Future Consequences Count

188.

Amber was shopping at the mall. She had $80 to spend. She found three items she liked: $75 for a pair of shoes, $70 for a jacket, and $62 for a dress. After shopping for a couple hours, she decided to borrow a pair of shoes from her cousin and to buy the jacket for $70. What was her opportunity cost?

a)

Shoes

b)

Jacket

c)

Dress

d)

Purse

189.

Tom was shopping for a car. He has looked at a Ford, Honda, Toyota, and Dodge. After a lot of debate, he narrowed it down to either the Ford or the Honda. He selected the Ford, because he liked the interior a little better. What was his opportunity cost?

a)

Ford

b)

Honda

c)

Toyota

d)

Dodge

190.

The seatbelt law has helped protect drivers and passengers, but now there has been increase in pedestrian and cycle deaths. Why? Well maybe drivers feel more secure and therefore drive more aggressively.

a)

Thinking at the Margin

b)

Costs vs Benefits

c)

Scarcity Forces Tradeoffs

d)

Future Consequences Count

191.

The satisfaction gained from using one more unit of a good or service is called

a)

marginal utility

b)

marginal cost

c)

opportunity cost

d)

opportunity benefit

192.

Brandon is hungry, so he orders a pizza. When he eats the first slice of pizza, he feels fuller and happier. By the time he eats the last slice, he feels sick and bloated. What economic law is being demonstrated?

a)

Law of Diminishing Marginal Utility

b)

Law of Cosines

c)

Rule of Law

d)

Law of Magna Carta

193.

Which of the Factors of Production is being used to make the pencil?

(a)  

194.

Why do many economists believe private ownership leads to more productive businesses than public ownership?

a)

People tend to take better care of goods they own

b)

People have more government protections as a private business than within the public sector

c)

Infrastructure can only be developed by private businesses

d)

Private businesses have more human capital

195.

Upton Sinclair's novel The Jungle revealed worker abuses and unsanitary practices and helped lead to the creation of the Food and Drug Administration. The government's creation of the FDA demonstrates the importance of _______ in a mixed-market economy

a)

Regulations

b)

Taxes

c)

Laissez-Faire economics

d)

Reaganomics