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Final review economics

Total questions: 51

Worksheet time: 26mins

Name
Class
Date
1.

The United States government increases troops being sent to Vietnam and eventually had to cut back on the Great Society social programs for the time being.  This is an example of what economic term that we learned.....

a)

Thinking @ Margin

b)

Factors of Production

c)

Decision Making Grid

d)

Guns or butter

2.

How could the free market and laissez faire hurt the consumer?

a)

No government intervention

b)

Monopolies may form

c)

Unsafe work environment

d)

All

3.

How does shortage differ from scarcity?

a)

Shortages only apply to goods, scarcity applies to services

b)

Scarcity always exist, shortages are temporary

4.

As a Hurricane approaches Long Island, many people will begin to stockpile goods such as batteries, water, milk, etc.  This will put a temporary strain on the availability of these goods.  This scenario is an example of what economic term that we studied?

a)

Shortage

b)

Scarcity

c)

Trade-off

5.

Given the choice of Milky Way, Twix, and Snickers, you decide that you would like the Snickers candy bar the most.  Your next choice is Milky Way and Twix is your least favorite choice.  In this example, what is your opportunity cost?

a)

Twix

b)

Snickers

c)

Milky way

d)

You cannot determine based on the info

6.

An inexperienced plumber or electrician who is gaining the skills and knowledge through an apprenticeship with a master craftsperson is an example of what economic term that we studied?

a)

Physical capital

b)

Capital

c)

Human capital

7.

Every decision involves trades offs because

a)

Everyone cannot make decisions

b)

Everyone’s resources are limited

c)

Some people have more money than others

d)

Some decisions are made for business and others for society

8.

This doctrine states that government generally should not interfere with the marketplace

a)

Free enterprise

b)

Carpe diem

c)

Laissez faire

9.

Mixed economies are made up of what two types of economies?

a)

Centrally planned and market

b)

Centrally planned and command

c)

Market and traditional

10.

What does a production possibilities frontier show?

a)

Scarce and less scarce resource

b)

Global trade offs and cost f doing business

c)

An economy that s producing but not a max

d)

The max amount that an economy may produce

11.

An economy that is producing the max amount of goods and services is considered

a)

efficient

b)

Underutilized

c)

Growing

d)

Trading off

12.

What is a factory building an example of?

a)

Human capital

b)

Physical capital

c)

An economic trade off

d)

Technology

13.

What does a traditional economy rely on?

a)

Habit

b)

Custom

c)

Ritual

d)

All

14.

An economy that is not using all of it resources to gain the max possible production is

a)

Efficient

b)

Underutilize

c)

Growing

d)

Trade off

15.

A production possibilities curve shows the relationship between the production of

a)

Farm goods and factory goods

b)

Two types of farm goods

c)

Two types of factory goods

d)

Any two categories of goods

16.

An economy in which only the government makes economic decisions is a

a)

Mixed

b)

Traditional

c)

Command

d)

Market

17.

Which is an example of a command economy?

a)

Singapore

b)

Nazi Germany

18.

The United States, Great Britain, and modern day Germany are all examples of what type of economy?

a)

Mixed

b)

Command

19.

Land, labor, and capital make up what term that we have studied?

a)

Factors of production

b)

Human capital

c)

Physical capital

20.

What are the three economic questions that every society must answer?

a)

What, how and for whom

b)

There is no questions

21.

A person that takes a chance and starts a business is called an.....

a)

Entrepreneur

b)

Central planners

c)

Laissez faire

22.

A period of change in which an economy moves away from a centrally planned economy toward a market-based system is said to be?

a)

Traditional

b)

Transvaal

c)

Efficient

d)

Transitional

23.

An economist might say, "Choosing is refusing."  What does this mean?

a)

Freewill

b)

You are a command economy

c)

If you chose one thing, you refuse another

24.

How does competition amongst firms benefit consumers?

a)

Lower prices and better quality

b)

Higher prices and better quality

c)

Lower prices bad quality

25.

What determines the price and the quantity produced of most goods?

a)

Perception

b)

Interaction of supply and demand

c)

Availability of other goods

d)

The quality of the goods produced

26.

Ceteris paribus, or “all other things held constant,” is an assumption that has which of the following effects on a demand schedule?

a)

It takes only price into account

b)

It is accurate no matter what changes occur

27.

What is a basic principle of the law of demand?

a)

The higher the price, the more people want the good

b)

Everyone has limited income

c)

When a goods price is lower, people will buy more of it

28.

How is the current demand for a good related to its future price?

a)

If the price is expected to drop, current demand will fall

b)

If the price is expected to drop, demand will rise

29.

What kind of changes would be expected in the demand of a country that has a growing population?

a)

Rise in demand for recreation

b)

A shift in the demand for high quality food

c)

A rise in the demand for shelter

30.

What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?

a)

Sell the goods now and try to invest the money instead of resupplying

b)

Sell the goods now but try to get the higher price for them

c)

Store the goods until the prices rises

31.

Which of the following is the best example of the law of supply?

a)

A sandwich shop increases the number of sandwiches they everyday when the price increases

b)

A food producer increases the number of acres of wheat he grows to supply a milling company

32.

When the selling price of a good goes up, what is the relationship to the quantity supplied?

a)

The cost of production goes down

b)

The profit made on each item goes down

c)

It becomes practical to produce more goods

33.

On which kinds of goods do governments generally place price ceilings?

a)

Those that are essential but too expensive for some consumers

b)

Those that are essential and cheap

c)

Those that are cheap but could become more expensive without the ceiling

34.

When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached?

a)

Supply and demand

b)

Excess demand

c)

equilibrium

d)

Price floor

35.

What happens to a market in equilibrium when there is an increase in supply?

a)

Excess supply means that producers will make less of the good

b)

Quantity demanded will exceed quantity supplied, so price drops

c)

Quantity supplied will exceed quantity demanded, so price will drop

36.

What is the name of the smallest amount that can legally be paid to most workers for an hour of work?

a)

Equilibrium price

b)

supply cost

c)

price floor

d)

minimum wage

37.

The price ceiling that was used to control the price of housing in New York City and other cities was called which of the following?

a)

rent control

b)

rent abatement

c)

housing control

38.

A stock that reinvests its earnings in the business instead of paying regular dividends is called

a)

income stock

b)

common stock

c)

preferred stock

d)

growth stock

39.

The Dow Jones Industrial Average consists of

a)

500 different stocks

b)

30 stocks that are considered representative of the market as a whole

40.

A stock split is most likely to occur when

a)

a company is losing money

b)

the price of a stock becomes too high

c)

stockholders demand dividens

41.

What are stocks? How do stocks enable corporations to thrive and grow?

a)

A certificate issued by a corporation, which promises to repay with interest the amount borrowed from the buyer

b)

A share representing a portion of ownership in a corporation-companies receive money from selling the stock and may modernize and expand

42.

In the late 1980s, some stockbrokers were arrested for inside trading. What is inside trading? How did it enable some brokers to get an edge in the market and accumulate vast resources

a)

The buying and selling of a security(stock) by someone who has access to material, nonpublic information about the security-it gives an unfair advantage

b)

situation in which a large block of stock is held by an unfriendly company

43.

How is the Dow-Jones Industrial Average an analytic tool for charting economic trends in the stock market?

a)

The Dow consists of 30 stocks and if you plot the closing prices everyday after a period of years you see trends

b)

The Dow consists of 250 stocks and if you plot the closing prices day to day you see trends for the long term

44.

After the stock market crashed in 1929, the United States, and most of the world, was plunged into an eleven-year depression. How did WWII help to revitalize the American economy and pull America out of the Great Depression?

a)

People went back to work in order to make supplies for the war

b)

All debt prior to the Depression was forgiven

45.

A car payment or student loan are both examples of:

a)

Lump sum payment

b)

An installment loan

c)

A single paymernt

46.

If I have a Visa and an American Express credit card and have been late paying my bills to Visa in the past, American Express may legally increase my APR due to what clause in the credit card contract?

a)

Finance Charge

b)

Character

c)

Universal default

47.

FICO scores range between 300 – 850.  This is a number that companies that grant credit use to assess an applicant’s risk.  The higher the FICO score, the lower the risk.  What is a FICO score used to generate?

a)

Credit rating

b)

Credit Bureau

c)

Principal

48.

TransUnion, Equifax and Experian are three credit rating agencies that determine an individuals credit score.  In essence, a credit score represents someone’s credit worthiness.  These credit rating agencies are also known as what term that we have studied?

20 sec

Credit rating

a)

Credit rating

b)

Credit Bureaus

c)

Credit Cards

49.

Which of the following best describes the concept of scarcity in economics?

a)

There is no need to make choices

b)

All goods are free for everyone

c)

Resources are limited and wants are unlimited

d)

Resources are unlimited and wants are limited

50.

What is the main purpose of a price floor in a market?

a)

To increase the supply of goods

b)

To eliminate competition

c)

To make goods more affordable for consumers

d)

To ensure prices do not fall below a certain level

51.

Which economic system is characterized by government ownership of resources and centralized decision making?

a)

Market economy

b)

Traditional economy

c)

Command economy

d)

Mixed economy