WorksheetsComment assessment economic
Total questions: 45
Worksheet time: 23mins
1.-Which statement best expresses the economic problem of scarcity?
It exists only in poor, underdeveloped countries.
It exists only in a natural disaster.
It existed in the past because of inefficient technology.
It is the basic economic problem facing all societies
A teenager named Carlos started a car-washing business. He bought 1/4 acre of land downtown and constructed 3 washing bays. He hired 4 workers for his business and trained them to shine tires and clean upholstery. What is considered human capital?
the 3 washing bays
the 4 workers
Carlos
training the workers
the acre of land downtown
In the figure above, the opportunity cost of producing 50 popcorn instead of 40 popcorn is
15 corn on the cob
50 popcorn
10 corn on the cob
10 popcorn
Jamie must decide whether to buy a new truck. He concludes that the marginal costs of buying the truck are greater than the marginal benefits. In Jamie's case, buying the truck would be
a rational economic decision
an irrational economic decision
an opportunity cost
a productive choice
Product scarcity would most likely cause a business to
petition for government aid
increase prices
lower prices
select a trade-off
Country A wishes to increase Economic growth and productivity, Country A's BEST course of action to take is to
increase production of natural resources
increase production of consumer goods
pay entrepreneurs to develop new products
increase human capital through education
According to the PPC, what point demonstrates the economy has grown and production has increased?
A
B
C
D
The most common type of resource allocation strategy used in a free market economy.
First Come, First Serve
Personal Characteristics
Price
Majority rule
Authority
Which of the following is NOT true regarding voluntary exchange?
It is made necessary because of societal specialization.
It is beneficial to the parties involved as long as it is non-fraudulent.
Its use is limited to predominantly underdeveloped countries.
It improves efficiency in an economy.
None of these are true.
The MAIN reason that modern command economies have failed is
Focus on equity has led to a shortage of luxury goods
Housing prices were too high
Government decisions led to shortages and inefficiency
Government favored capital over consumer goods
Government issued a patent, which would be indicative of a guarantee of
property rights in a mixed market economy
equity in a mixed market
capital improvement
property rights in a market economy
none of these
The 3 basic economic questions that every society must answer are._,_, and_ to produce.
what, for whom, how
what, when, how
how, when, for whom
for whom, who, why
none of these
Which is NOT a typical government action in the US economy?
providing public goods and services
protecting property rights
resolving market failures
setting prices
redistributing income
Which situation would be the most likely benefit of Timmy living in a market economy?
He sees a Kroger coupon in the paper, so he decides to go to Kroger instead of Wal-Mart to save money.
Grocery prices at Wal-Mart and Kroger remain stable, despite the scarcity of gasoline for shipping companies.
He doesn't have to worry about losing his job on the fishing boat, even though there is little demand for fish
He is offered the newest innovations due to corporation profit motive and protections for inventions
The state government agrees to build Macon State Prison a new workout facility if they produce a certain sum of license plates. The prison warden offers inmates additional snacks and Friday steak dinners if they spend 20 hours a week making the license plates for the state. This BEST explains the value the state and the warden place on
human capital
incentives
economic growth
innovation
investment
When one makes an investment, he or she is most likely to
Postpone current benefits
Increase standard of living in the present time
Have few or no opportunity costs in the decision
None of these
The tax structure shown below is
Progressive
Regressive
Proportional
None of these
A general difference in scholarships and grants is that
Scholarships do not have to be paid back
Grants do not incur taxes
Scholarships are based on merit, grants are based on need
Grants are not available to private school students
Elective deductions are often used for the purpose of
Reducing taxable income
Providing proof of employment
Spreading pay check proceeds throughout the year
None of these
Net worth is found by
Adding physical cash, savings account and checking account funds
Subtracting one's debt from assets
Subtracting fixed expenses and estimated variable expenses from one's salary
Adding one's current checking and savings account to his yearly salary
Evaluate the investments from LEAST risky to most risky.
Savings account, certificate of deposit, cryptocurrency, stock, mutual fund
Savings account, certificate of deposit, bond, mutual fund, stock, cryptocurrency
Certificate of deposit, stock, savings account, mutual fund, cryptocurrency, bond
Certificate of deposit, bond, savings account, mutual fund, stock, cryptocurrency
Savings Account, stock, mutual fund, certificate of deposit, bond, cryptocurrency
Katie decides to put money in a Roth IRA instead of a Traditional, what is the most probable reason?
she is able to forgo paying taxes on her current income
she will not be taxed on the profits when she takes the money out in retirement
the Roth IRA is considered less of a risk due to diversification
the Roth IRA has professional management, while traditional does not
Which financial institution is characterized by ownership of members and its non-profit status?
credit union
commercial bank
title pawn
payday lender
none of these
Jimmy purchased a promise from a company to pay him back later with interest. Jimmy now owns
stock
a bond
a mutual fund
a certificate of deposit
Which function of money allows individuals to compare how much items are worth?
Store of value
Standard of Value
Medium of Exchange
Exchange Rate
Tim wants to borrow money from the bank, Tim ALWAYS wants to borrow money using__interest.
Simple
Compound
Variable
Fixed
Sammy generated a nominal return of 4% on his investment last year, but had no real return, this is most likely due to
a company failing to pay a dividend or lowering the dividend below the 4% threshold
the company or mutual fund that Sammy invested in declared bankruptcy
Sammy's economy experiencing a rate of inflation above 4%
an increase in taxes on capital gains above 4%
What is the biggest component of one's credit score?
payment history
amounts owed
length of credit history
types of credit in use
Which of the following best describes revolving credit? One....
is able to borrow repeatedly up to a certain limit
gets a single lump sum of funds
makes one single payment
pays a small sum now in order to borrow larger funds in the future
One advantage of a mutual fund would be
the assets never go down in value
the ability to manage the stocks yourself
the diversity of stocks within the fund
the investment offers the highest potential return
Why would one wish to invest in a certificate of deposit instead of a savings account?
It gives ownership in the company
It pays a higher interest rate than the savings account
It is insured by the FDIC
one is able to withdraw his money at anytime
Which event can Henry expect to most likely cause a shift in demand?
he sees that the good is on sale
he expects the price of the good to be higher in the future
the company that makes the good has educated its workforce
all of these
A surplus of bananas would emerge now if:
government set a price ceiling of P1.
growers expect prices to soar.
hurricanes destroyed Central American banana plantations.
government imposed a price floor of P2.
What arrows show: The flow of money? Pick all that apply, but no more.
1,2,3,4
5,6,7,8
3,4
5,6
What arrows show: McDonald's selling a hamburger to Harry?
5,6
1,2
3,4
5,1
Of the following, which situation would cause the shift of the supply curve from S to S1? (Graph above)
The government reduces a financial incentive for farmers to produce wheat.
New fertilizers increase wheat crop yields.
Firms exit the wheat industry.
Drought reduces industry output by 25%.
None of these.
The law of supply and demand states that if supply is__and demand is__prices will be high.
low, low
high, high
low, high
high, low
What would be the consequence of a price ceiling of 50 dollars?
Surplus of 300.
Shortage of 175.
Shortage of 300.
Which form of business organization finds it easiest to raise capital?
sole proprietorship
partnership
corporation
partnership and corporation are equal in this area
Which of these market structures has the biggest barriers to entry?
oligopoly
corporation
pure competition
monopolistic competition
Sharon decided to open a dry-cleaning business. She borrowed some money from
her sister and took a loan from a bank. She hired one helper. What is a DISADVANTAGE of Sharon's business as described?
no separation of ownership and control
ease of organizing the business
unlimited liability
double taxation
Market structures from the least to the most competitive are
Pure Competition, Oligopoly, Monopoly, Monopolistic Competition
Monopoly, Monopolistic Competition, Oligopoly, Pure Competition
Monopoly, Oligopoly, Monopolistic Competition, Pure Competition
Pure Competition, Monopolistic Competition, Oligopoly, Monopoly
Monopolistic Competition, Monopoly, Pure Competition, Oligopoly
In order to raise capital or pay off debt, a corporation may obtain funds by
selling stock, but not corporate bonds
selling corporate bonds, but not stock
selling stock and/or corporate bonds
none of these is permissible for a corporation
A market structure where prices are only determined by the laws of supply and demand
monopoly
pure competition
monopolistic competition
oligopoly
What might cause the chart for cosmetics?
Cosmetics Inc. lowers the price of their makeup.
Cosmetic Inc. increases the human capital of the workers in the factory.
Cosmetic Inc. hires a popular celebrity to advertise the product on social media.
A consumer advocate company accuses Cosmetic Inc. of using harmful ingredients
key ingredient of Cosmetic Inc.'s makeup increases in price.
