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FBLA economics

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

______ is a cost that you have already incurred and cannot recover

a)

positive cost

b)

lost cost

c)

negative cost

d)

sunk cost

2.

Being able to do something using fewer resources than other producers require would give you a(n)_________

a)

disadvantage

b)

monopoly

c)

comparative advantage

d)

absolute advantage

3.

______ means producing the maximum possible output from available resources

a)

Maximization

b)

productivity

c)

efficiency

d)

equilibrium

4.

A shift outward of the production possibilities frontier reflects economic ______

a)

growth

b)

weakness

c)

stability

d)

retraction

5.

______ focuses on the performance of the economy as a whole

a)

macroeconomics

b)

microeconomics

c)

gross national product

d)

gross domestic product

6.

Which of the following statements is NOT valid about gross domestic product?

a)

it includes production in the United States by foreign firms

b)

it can be used to compare economies of various countries

c)

it includes production of U.S. firms in foreign countries

d)

it measures production during the year by businesses and individuals

7.

which situation shows the law of diminishing marginal utility at work?

a)

you are willing to pay the same price for every succeeding slice of pizza you purchase

b)

you will only purchase succeeding slices if they cost less

c)

each piece of pizza you purchase gets smaller

d)

you are willing to pay more for every succeeding slice of pizza you order

8.

Trade restrictions usually ______

a)

benefit domestic consumers

b)

increase imports

c)

lower tariffs

d)

benefit domestic producers

9.

______ might cause a shift in the supply curve to the right in the grain business

a)

an increase in the cost of harvesting grain

b)

discovery of a substitute for grain

c)

a technological breakthrough to increase yields

d)

a decrease in the number of farms

10.

the ability of a firm to raise its price without losing sales to competitors is called ________

a)

recession

b)

profit

c)

market power

d)

inflation

11.

which factor is responsible for credit card interest being so high?

a)

abundance of credit cards

b)

lack of collateral on the debt

c)

low administration costs

d)

large line of credit

12.

the largest source of revenue for local governments is from _______

a)

property tax

b)

sales tax

c)

income tax

d)

state and federal aid

13.

disposable income is _______

a)

income before taxes

b)

extra income

c)

inflated income

d)

income after taxes

14.

Of the 24 million businesses in the U.S., most _________

a)

consist of one self-employed person

b)

will grow into larger businesses

c)

employ more than 25 people

d)

will become corporations

15.

The _____ shows how much output U.S. producers are willing and able to supply at each price level

a)

real GDP per capita

b)

aggregate demand curve

c)

aggregate supply curve

d)

equilibrium market