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Econ - Benchmark #2 Review

Total questions: 58

Worksheet time: 34mins

Name
Class
Date
1.

Which of the following would NOT be counted in the GDP?

a)

A used car your grandfather sold you

b)

You buy a new pair of shoes online

c)

A business buys tires to resell

d)

A city government's spending on a new park

2.

A general increase in prices is called

a)

inflation

b)

purchasing power

c)

the CPI

d)

a price index

3.

The _______ is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

a)

Consumer Price Index

b)

Aggregate supply

c)

Producer Price Index

d)

Aggregate demand

4.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
5.
In this type of economy, the people decide the supply, demand, and price.  
a)
Market 
b)
Traditional
c)
Command 
d)
Mixed
6.
Which two groups of people are represented in the circular flow model?
a)
Buyers and Sellers
b)
Producers and Consumers
c)
Government and Private Individuals
d)
Households and Businesses
7.
A person or organization that uses a product or service is a(n):
a)
consumer
b)
economist
c)
loan shark
d)
debtor
8.
When the quantity supplied is greater than the quantity demanded
a)
a shortage has occurred.
b)
a surplus has occurred.
c)
it doesn't mean anything.
d)
government intervenes.
9.
A _____ economy's government makes all of the major economic decisions.
a)
traditional
b)
mixed
c)
market
d)
command
10.
The thing that you give up (the next best alternative) when you make a decision is known as
a)
Opportunity Cost
b)
Scarcity
c)
Incentive
d)
Choice
11.

A person who provides a good or service

a)

producer

b)

need

c)

want

d)

consumer

12.
What term refers to a good that comes into a country?
a)
Trade
b)
Migration
c)
Export
d)
Import
13.
What term refers to a good that leaves a country?
a)
Export
b)
Import
c)
Trade
d)
Distribution
14.

What would cause a PPC (Production Possibilities Curve) to shift outward (to the right)?

a)

A decrease in available resources

b)

A decrease in the amount of resources used

c)

An increase in the price of finished goods and services

d)

An increase in available resources or an increase in the efficiency with which existing resources are used

15.

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?

a)

Supply will decrease, demand will increase.

b)

Supply will increase, and demand will decrease.

c)

Supply will increase, and demand will stay the same.

d)

Supply will stay the same, demand will increase.

16.

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...

a)

Demand decreased

b)

Demand increased

c)

Supply increased

d)

Supply decreased

17.

If the market for corn is in equilibrium:

a)

All consumers of corn receive the same quantity of corn.

b)

All producers of corn earn the same amount of income form the sale of corn.

c)

Every producer who sells corn can do so

d)

The price is at a level where the quantity of corn supplied is equal to the quantity of corn demanded.

18.

A maximum price set below the equilibrium price is a:

a)

Demand price

b)

Price ceiling

c)

Price floor

d)

Supply price

19.

A price that the government guarantees farmer will receive for a particular crop is a:

a)

Excise tax

b)

Export price

c)

Price ceiling

d)

Price floor

20.

When the demand for Halloween candy decreases after October 31th, what will happen to the price of the leftover candy?

a)

It will increase

b)

It will decrease

c)

No change

d)

It will double because candy is rare

21.

The law of supply states...

a)

Producers will offer less supply at higher prices

b)

Producers will offer more supply at lower prices

c)

Producers will offer more supply at higher prices

d)

Producers will offer less supply at lower prices

22.

A shift to the left in the demand curve indicates a(n)

a)

decrease in price.

b)

decrease in demand.

c)

increase in population.

d)

increase in demand.

23.

If two products are complementary goods, how will a decrease in the price of one affect the other?

a)

demand will increase

b)

price will increase

c)

demand will decrease

d)

price will decrease

24.
On this PPC, which point is efficient? 
a)
A
b)
C
c)
D
d)
None
25.
On the PPC, which point is inefficient?
a)
A
b)
B
c)
C
d)
D
26.

On the PPC, which point is unattainable?

a)
A
b)
B
c)
C
d)
D
27.
The place where goods and services are exchanged
a)
barter
b)
currency
c)
market
d)
resource
28.

Sony gets new technology that will allow more PlayStation 5s to be produced each hour. How will this affect the supply of PS5s?

a)
b)
c)

No shift in the supply curve, it is a price change

29.

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?

a)
b)
c)

No shift in the supply curve, it is a price change

30.

A terrible blizzard destroys the herds of most ranchers in the western U.S. How will this affect the supply of beef?

a)
b)
c)

No shift in the supply curve, it is a price change

31.

Which of these best describes the law of demand?

a)

if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up

b)

if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down

c)

there is no law of demand, each situation is unique and demand and prices cannot be predicted

d)

prices will go up for certain goods when quantity demanded goes up and vice versa

32.
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)
33.

This reflects those who are actively seeking employment.

a)

full employment

b)

unemployment rate

c)

labor force

d)

underemployed

34.

It is the study of the nations economy as a whole.

a)

Microeconomics

b)

National economy

c)

National output

d)

Macroeconomics

35.

It is the measure of a country's total production of final goods and services in a given period of time.

a)

Gross National Product

b)

Gross Domestic Product

c)

Exports

d)

Imports

36.

Which of the following scenarios show cyclical unemployment?

a)

John got laid-off from work since the company is not making enough money.

b)

Jeff was laid off from his job because business is slow.

c)

Ramon quit his jobs to move to Canada for a better job offer.

d)

Alberto works as a call center agent after graduating nursing

37.

Which of the following situation describes frictional unemployment?

a)

Robert is a full-time student.

b)

Sharon just graduated from college.

c)

George earns 70 pesos an hour.

d)

Gene works after school as a bagger at a local grocery store.

38.

It captures the prices of goods and services that consumers typically buy.

a)

Total Weighted Price

b)

Weighted Price

c)

Consumer Price Index

d)

Consumer Product Index

39.

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

40.

Which is a Gross Domestic Product calculation that adjusted for inflation?

a)

Nominal GDP

b)

Real GDP

41.

A monopoly's prices are determined by

a)

competing firms

b)

market equilibrium

c)

perfect competition

d)

the monopoly itself

42.

What is monopolisitc competition?

a)

one company selling identical products under different names

b)

many companies selling similar but not identical products

c)

a very few companies selling identical products

d)

one company selling different products under different names

43.

The government takes part in the US economy to

a)

encourage competition and fair play

b)

reduce the effects of imperfect competition

c)

regulate industries that serve the public good

d)

all of these are correct

44.

An agreement among firms to divide the market or set prices is known as collusion.

a)

True

b)

False

45.

Which industry best exemplifies an oligopoly?

a)

cell phone providers

b)

farming

c)

women's clothing

d)

publishing

46.

It is the most ideal market structure.

a)

perfect competition

b)

monopolistic competition

c)

oligopoly

d)

monopoly

47.

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

a)

a Monopoly

b)

an Oligopoly

c)

a Competitive market

48.
Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?
a)
corporation
b)
partnership
c)
sole proprietorship
49.
Dan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest?
a)
corporation
b)
partnership
c)
proprietorship
50.
A business partnership has ___________ who share the risks and the profits.
a)
One owner
b)
No more than three owners
c)
Two or more owners
d)
Five or more owners
51.
What do we call a person who is willing to take the risks of starting a business in order to make a profit?
a)
Proprieter
b)
Partner
c)
Entrepreneur
d)
Incorporater
52.
What is a company called that sells stock to raise money?
a)
Partnership
b)
Corporation
c)
Sole Proprietorship
d)
Limited Partnership
53.
Which business type makes up approximately 75% of all businesses?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
54.

In a Perfect Competition, products are basically..

a)

differentiated

b)

identical

c)

similar

d)

opposite

55.

An Oligopoly is when there are

a)

few producers who control the market

b)

only one producer

c)

an open market with plenty of producers

d)

a market that hasn't yet been discovered

56.

When buying produce at the grocery store, many people shop around for the best deal, because when it comes down to it, an apple is an apple. This is an example of:

a)

monopoy

b)

monopolistic competition

c)

oligopoly

d)

perfect competition

57.

Nike signed Michael Jordan in 1984 in order to get more young people to buy Nike instead of Converse or adidas. They tried to show their shoe was cool and therefore superior. This is-

a)

monopoly

b)

monopolistic competition

c)

oligopoly

d)

perfect competition

58.

Your family can only get electricity or natural gas to their home through one provider. There is no other option. This is an example of_

a)

monopoly

b)

monopolistic competition

c)

oligopoly

d)

perfect competition