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Economics and Personal Finance - Units 1 and 2

Total questions: 61

Worksheet time: 42mins

Name
Class
Date
1.

Individuals (households) own resources used in production, sell resources for _____, and use the ______ to purchase products.

a)

Income

b)

Taxes

c)

Interest

d)

opportunity cost

2.

________ uses tax revenue from individuals and businesses to provide public goods and services.

a)

Individuals

b)

Government

c)

Businesses

d)

Private Financial Institutions

3.

Private Financial Institutions include all of the following Except?

a)

Banks, Savings and Loans, And Credit Unions

b)

Receive Deposits and Make Loans

c)

Discourage saving and investing by paying interest on deposits

d)

Encourage saving and investing by paying interest on deposits

4.

Reasons why States and Nations Trade include all of the following EXCEPT

a)

To obtain goods and services they cannot produce efficiently themselves

b)

To buy goods and services at a Higher cost

c)

To sell goods or services to other countries

d)

To create Jobs

5.

What contributes to the global flow of information, capital, goods, and services, AND lowers the cost of production?

a)

Taxes

b)

Technology

c)

Interest

d)

Income

6.

Government promotes and regulates marketplace competition by all of the following EXCEPT

a)

Enforcing Antitrust legislation to Discourage Monopolies

b)

Engaging in Global Trade

c)

Supporting Business Start-ups

d)

Eliminating Competition

7.

Which of the Following is NOT a Government Agency that regulates business?

a)

Federal Communications Commission(FCC)

b)

Environmental Protection Agency

(EPA)

c)

Federal Trade Commission (FTC)

d)

Federal Emergency Management Agency (FEMA)

8.

What is known as the Bankers Bank and the Central Bank of the U.S.?

a)

Federal Reserve

(FED)

b)

Bank of America

c)

United States Central Bank

d)

United States Bankers Bank

9.

Why does the U.S. pass laws and create agencies?

a)

To Protect consumer rights and property rights

b)

To raise money

c)

To weaken the national defense

d)

To help promote monopolies

10.

What type of business ownership has 2 or more owners who share the risk and share the profit?

a)

Proprietorship

b)

Partnership

c)

Corporation

d)

Public

11.

what type of business organization has 1 owner who takes all of the risks and keeps all of the profits?

a)

Partnership

b)

Proprietorship

c)

Corporation

d)

Private Stock

12.

What type of Business organization has many owners and the liability to limited to investment?

a)

Corporation

b)

Proprietorship

c)

Partnership

d)

Lemonade Stand

13.

What type of economy does the U.S. have?

a)

Free Market

b)

Traditional

c)

Command

d)

Mixed

14.

The want or willingness a consumer has to purchase a good or a service is called?

a)
shortage
b)
supply
c)
price
d)
demand
15.

The amount of goods or services available for a producer to sell is called?

a)
supply
b)
demand
c)
producer
d)
consumer
16.

An individual who purchases (buy) goods.

a)
producer
b)
consumer
c)
goods
d)
services
17.

A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?

a)

The supply will probably go up

b)

The supply will probably go down

18.

Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?

a)

The demand will probably go up

b)

The demand will probably go down

19.

What will happen to the price of new cars if a weak economy causes people to have lower incomes?

a)

The price will increase

b)

The price will decrease

20.

What will happen to the price of baby cribs if there is a large increase in the number of babies born?

a)

The price will increase

b)

The price will decarese

21.

What will happen to the price of soccer balls if more and more boys and girls are learning to play soccer?

a)

The price will increase

b)

The price will decrease

22.
Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?
a)
The price will go up.
b)
The price will go down.
23.
Lucas fixes his friend's sink.  He is providing a _____________.
a)
trade
b)
opportunity cost
c)
product
d)
service
24.
Local stores sell a particular pair of sneakers for $80. A picture of a basketball star Lebron James wearing these sneakers appears in all the local Ohio newspapers. The next day, sales for sneakers start to rise.
What is likely to happen to the price of the sneakers over the next several weeks?
a)
People will refuse to buy these sneakers.
b)
The price for the sneakers will not change.
c)
The price will fall as people learn Lebron James wears them.
d)
The price of the sneakers will rise as more people want similar sneakers.
25.
Mr Tonkli goes to the ticket booth to buy tickets for a Cavs game. Mr. Tonkli is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available? 
a)
The arena forgot to print enough tickets.
b)
The supply of tickets was greater than the demand.
c)
The arena charged too much money for each ticket.
d)
The demand for tickets was greater than the supply.
26.

What will happen to the price of T-Shirts if T-Shirt businesses now use machines that produce twice as many shirts in one hour?

a)

The price will increase

b)

The price will decarese

27.
Cold weather in Florida has damaged this year’s orange crop. Farmers have only half of the usual amount of oranges to sell. What will happen to the price of oranges?
a)
The price will go up.
b)
The price will go down.
28.
The new Star Wars movie is coming out today!  All of the shows are sold out, but your neighbor is selling his tickets because he can't go.  A lot of people in your neighborhood want to buy the tickets.  What will happen to the price of the tickets?
a)
The price will go up.
b)
The price will go down.
29.
What happens if you have a rare football trading card? Your friends really want that card. The supply of that card is low, while demand for it is high.  What will happen to the price of the card?
a)
The price will go up.
b)
The price will go down.
30.
What happens to the price of objects when the demand for them decreases?
a)
The price will go down
b)
The price will go up
c)
The price will stay the same
d)
They will be free
31.
If there is a huge demand for an item and the supply is very low, what will happen to the price?
a)
The price will decrease
b)
The price will increase
c)
The price will stay the same.
d)
They will be free.
32.

Which of the following is not a barrier to entry in a monopolized market?

a)

The presence of many buyers and sellers in the market

b)

The government gives a single firm the exclusive right to produce some good.

c)

The costs of production make a single producer more efficient than a large number of producers.

d)

A key resource is owned by a single firm.

33.

This market structure is characterized by the lowest level of competition among producers.

a)

monopolistic competition

b)

monopoly

c)

oligopoly

d)

perfect competition

34.

It is the most ideal market structure.

a)

perfect competition

b)

monopolistic competition

c)

oligopoly

d)

monopoly

35.

List the four market structures in the 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

36.
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
37.

An industry or market that is dominated by a few firms is

a)

a Monopoly

b)

an Oligopoly

c)

a Competitive market

38.
When a major car company lowers its prices, other car makers will probably 
a)
maintain existing prices.
b)
raise their prices.
c)
go out of business.
d)
lower their prices.
39.

These are the things we desire to have.

a)

Wants

b)

Goals

c)

Opportunity Costs

40.

The opportunity cost of a good is

a)

its price in dollars and cents.

b)

the alternative goods forgone.

c)

the price of alternative goods foregone.

d)

none of the other options

41.

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

42.

Limited Resources + Unlimited Wants =

a)

Scarcity

b)

Productivity

c)

Opportunity Cost

d)

Efficiency

43.

Scarcity is only a problem for poor people.

a)

True

b)

False

44.

Emily is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Emily decides to get a job. Which of the following is the opportunity cost of her decision?

a)

money

b)

job

c)

time

d)

college

45.
A garbage truck driver is an example of which Factor of Production?
a)
labor
b)
land
c)
entrepreneurship
d)
capital
46.
Iron, minerals, coal and plants are examples of which productive resource?
a)
land
b)
labor
c)
entrepreneurship
d)
capital
47.
Which factor of production would you consider a lawn mower?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneur
48.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

49.

Labor refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

50.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

The "gifts of nature" or natural resources not created by human effort.

d)

the tools, equipment, and factories used in production of goods and services

51.

WHAT ARE THE 4 FACTORS OF PRODUCTION?

a)

Land, Capital, Need & Want

b)

Land, Labor, Capital, Entrepreneurs

c)

Water, Air, Food & Shelter

d)

Land, Capital, Good & Service

52.

Economics can be described as the study of

a)

Money

b)

Choices

c)

graphing

d)

price ceilings and price floors

53.

The condition of scarcity can be described as one that

a)

afflicts only poor people and nations

b)

exists when our unlimited needs/wants exceed our limited resources

c)

exists when our limited resources exceed our unlimited needs/wants

d)

only applies to luxury items

54.

Why do entrepreneurs take risks?

a)

to set their own work hours

b)

to earn a profit for themselves

c)

to provide G/S to their customers

d)

to provide salaries and benefits to their employees

55.

Macroeconomics approaches the study of economics from the viewpoints of

a)

individual firms

b)

individual consumers

c)

government units

d)

the entire economy

56.

GDP is the process of declining during a(an)

a)

peak

b)

contraction

c)

expansion

d)

trough

57.

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

a)

Peak

b)

Contraction

c)

Trough

d)

Expansion

58.

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

a)

Peak

b)

Contraction

c)

Trough

d)

Expansion

59.

Which of the following is an expansion, or recovery?

a)

A

b)

B

c)

C

d)

D

60.

If GDP falls for at least two quarters, it is considered what stage of the business cycle?

a)

Expansion

b)

Recession

c)

Prosperity

d)

Recovery

61.

At what point in the business cycle is GDP the highest?

a)

Peak

b)

Expansion

c)

Recovery

d)

Trough