WorksheetsBRAIN DRILL TEST
Total questions: 100
Worksheet time: 59mins
What do economists mean by the term "scarcity"?
Having too few or too little of resources
Having too many resources
Having just enough resources
Having the correct amount of resources
Which choice best describes the economic problem of scarcity in the world?
People have limited wants there is an unlimited amount of resources.
People have unlimited wants but there is a limited amount of resources
People have no wants so resources don't matter
Which of the following is not one of the three basic questions economists try to solve?
What should be produced?
How should it be produced?
Who gets what is produced?
When should it be produced?
_____________ are things that people make or use to satisfy their needs and wants.
Goods
Services
Producers
Consumers
________________ are activities that satisfy people’s needs and wants.
Goods
Services
Needs
Wants
______________ are people who use natural resources, human resources, and capital resources to make goods or provide services.
Producers
Services
Goods
Resources
________________ are people who use services or buy goods.
Producers
Resources
Pretty
Consumers
_______________ resources are materials that come from nature.
Special
Natural
Human
Capital
______________ resources are people working to produce goods or provide services.
Capital
Human
Natural
Manufactured
________________ resources are the things that people use to make the goods or provide their services.
Natural
Capital
Company
Human
The good or service that you give up when you make an economic choice is called _____________________.
opportunity cost
economic choice
economic interdependence
economic specialization
Being an expert in one job, product, or service is called ___________________.
economic interdependence
economic specialization
opportunity cost
scarcity
The choice between two goods or services is known as ___________________.
scarcity
opportunity cost
economic choice
economic specialization
The term used when there is not enough of something to go around is __________________.
scarcity
economic choices
resources
opportunity cost
What type of resources are these?
capital
natural
nautical
human
These are examples of ________________ resources.
capital
natural
scarce
human
This picture shows examples of _________________ resources.
natural
capital
human
consumer
What do we call all of the resources required to make a product (good or service)?
economics
consumption
four factors of production
scarcity
A person who comes up with a new idea for a product, and they actually make it and sell it.
resource
human resources
consumer
entrepreneur
________ uses tax revenue from individuals and businesses to provide public goods and services.
Individuals
Government
Businesses
Private Financial Institutions
Individuals (households) own resources used in production, sell resources for _____, and use the ______ to purchase products.
Income
Taxes
Interest
opportunity cost
________ uses tax revenue from individuals and businesses to provide public goods and services.
Individuals
Government
Businesses
Private Financial Institutions
Private Financial Institutions include all of the following Except?
Banks, Savings and Loans, And Credit Unions
Receive Deposits and Make Loans
Discourage saving and investing by paying interest on deposits
Encourage saving and investing by paying interest on deposits
Reasons why States and Nations Trade include all of the following EXCEPT
To obtain goods and services they cannot produce efficiently themselves
To buy goods and services at a Higher cost
To sell goods or services to other countries
To create Jobs
What contributes to the global flow of information, capital, goods, and services, AND lowers the cost of production?
Taxes
Technology
Interest
Income
Government promotes and regulates marketplace competition by all of the following EXCEPT
Enforcing Antitrust legislation to Discourage Monopolies
Engaging in Global Trade
Supporting Business Start-ups
Eliminating Competition
Which of the Following is NOT a Government Agency that regulates business?
Federal Communications Commission(FCC)
Environmental Protection Agency
(EPA)
Federal Trade Commission (FTC)
Federal Emergency Management Agency (FEMA)
Ways Government pays for public goods and services (Highways, Bridges, Parks, Schools, Postal Services, Libraries, Fire and Rescue, Police, and National Defense) include all of the following EXCEPT
Tax Revenue
Fees
Borrowed Funds
Monopoly Money
Which Amendment allows Congress to tax personal and business incomes?
1st
5th
14th
16th
What is known as the Bankers Bank and the Central Bank of the U.S.?
Federal Reserve
(FED)
Bank of America
United States Central Bank
United States Bankers Bank
Why does the U.S. pass laws and create agencies?
To Protect consumer rights and property rights
To raise money
To weaken the national defense
To help promote monopolies
What type of business ownership has 2 or more owners who share the risk and share the profit?
Proprietorship
Partnership
Corporation
Public
what type of business organization has 1 owner who takes all of the risks and keeps all of the profits?
Partnership
Proprietorship
Corporation
Private Stock
What type of Business organization has many owners and the liability to limited to investment?
Corporation
Proprietorship
Partnership
Lemonade Stand
What type of economy does the U.S. have?
Free Market
Traditional
Command
Mixed
A year ago, there were 12 companies that made motorized scooters. But over the past month, 5 of those companies went out of business. What probably happened to the overall supply of motorized scooters?
The supply probably went up.
The supply probably went down.
A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?
The supply will probably go up
The supply will probably go down
Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?
The demand will probably go up
The demand will probably go down
Summerfield's population has grown by 10,000 people per year for the last five years. What has probably happened to the overall demand for apartments in Summerfield?
The demand has probably gone up
The demand has probably gone down
Last year, taxes went up by $100 per person in
Dover. What probably happened to overall demand for goods and services in Dover?
The demand probably went up
The demand probably went down
What is Production?
Production is the act of creating an output, a good or service which has value and contributes to the utility of individuals.
Production is an activity related to selling or the number of goods or services sold in a given time period.
Production is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.
Production is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace.
What is Production?
Production is the act of creating an output, a good or service which has value and contributes to the utility of individuals.
Production is an activity related to selling or the number of goods or services sold in a given time period.
Production is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.
Production is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace.
What is Demand?
Demand is the act of creating an output, a good or service which has value and contributes to the utility of individuals.
Demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.
Demand is an activity related to selling or the number of goods or services sold in a given time period.
Demand is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace.
What is Sale?
Sale is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.
Sale is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace.
Sale is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace.
Sale is an activity related to selling or the number of goods or services sold in a given time period.
What is Supply?
Supply is an activity related to selling or the number of goods or services sold in a given time period.
Supply is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.
Supply is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace.
Supply is the act of creating an output, a good or service which has value and contributes to the utility of individuals.
Who is a Producer?
A producer is someone who grows or makes something to be sold.
Consumers are people who use goods or services.
Who is a Consumer?
A producer is someone who grows or makes something to be sold.
Consumers are people who use goods or services.
What is Cost?
The amount a producer spends on producing a good or service.
The amount he or she sells the product for.
The actual earning.
When the selling price is less than the cost.
What is Price?
When the selling price is less than the cost
the actual earning
The amount he or she sells the product for
The amount a producer spends on producing a good or service
What is a Profit?
When the selling price is less than the cost
the actual earning
The amount he or she sells the product for
The amount a producer spends on producing a good or service
What is Loss?
When the selling price is less than the cost
the actual earning
The amount he or she sells the product for
The amount a producer spends on producing a good or service
a movement along the demand curve is due to the factor of
whether
price of related goods
price of the good itself
advertisement
slopping downward from left to the right is referring to
supply curve
demand curve
supply and demand
none from the above
a SHIFT in the supply curve is due to the factors of
price of the good itself
income
technology
advertisement
Printers and ink cartridges are typically purchased together. Economists would call these
Substitute goods
Complementary goods
Inferior goods
compulsory goods
A table that lists the quantity of a good that a single person will buy at each price in a market.
individual demand schedule
market demand schedule
individual supply schedule
market supply schedule
If everyone WANTS a good/service, what is that?
High Demand
Low Demand
High Supply
Low Supply
A product that had been popular is rapidly becoming less popular, as consumer tastes begin to change. How will this affect the market price and quantity for that product?
Price will decrease, quantity will increase.
Price and quantity will both increase.
Price will increase, quantity will decrease.
Price and quantity will both decrease.
The government finally removes a massive excise tax on a popular product, after an election changed the party in power. How will this affect the market price and quantity for that product?
Price will decrease, quantity will increase.
Price and quantity will both increase.
Price will increase, quantity will decrease.
Price and quantity will both decrease.
Gross Domestic Product is a method for calculating how much a country produces by adding which four spending categories?
Consumption, Investment, Government, Net Exports
Consumption, Investment, Government, Business expenditures
Consumption, Interest Rates, Government, Net Exports
Wages, Rent, Interest, Profit
The best definition of inflation is:
No changes in the price level
Fluctuations in the price level
A rise in the price level
A decrease in the price level
Generally speaking, inflation is beneficial to ________ and harmful to _________.
sole proprietors; partnerships
lenders; borrowers
government; individuals
borrowers; lenders
Comparing real GDP between two consecutive years is MOST useful in determining which economic measurement?
Economic growth
Equity
Exchange rates
Equilibrium price
Fiscal policy refers to the power of the federal government to
Regulate interstate commerce
Control credit
Print money
Tax and spend
Concern about an international crisis has caused consumers to save their money and postpone big purchases. What is the immediate effect on aggregate demand, price level, and aggregate supply?
Aggregate demand will decrease, price level decreases, and aggregate supply will decrease.
Aggregate demand will decrease, lowering both real GDP and the price level.
Aggregate supply will decrease, raising the price level and lowering real GDP.
There will be no change.
With regards to economic growth, what is the goal of an expansionary fiscal policy?
Decrease economic growth
Increase economic growth
Increase trade deficits
Maintain current economic levels
Old MacDonald purchases a new John Deere tractor for use on his farm. Is this purchase included in the GDP calculation?
Yes
No
Luigi the Plumber purchases a two-year old used truck. Is this purchase included in the GDP calculation?
Yes
No
Bob the Barber makes $400 cutting hair for the week. Is this service included in the GDP calculation?
Yes
No
You spend $7 to see the Justin Bieber movie. (?) Which sector of the GDP equation would include this purchase?
Consumer Spending
Investment Spending
Government Spending
Net Exports
A sales tax has a lower impact on a person who earns a larger income. Therefore, a sales tax is a ________________.
progressive tax
proportional tax
regressive tax
excise tax
What do you call the tools and equipment needed to create a good or service?
Capital Resources
Human Resources
Land Resources
Entrepreneurial Ability
Many people buy present box before Christmas,the supply is low,the price will become ______
Higher
Lower
Free
Its a sunny day,many people buy sunglasses,but there were only few sunglasses left,the price of sunglasses will be _______
High
Low
Free
When the demand curve shifts to the left, this suggests demand has
increased
decreased
Quantity demanded has increased
Quantity demanded has decreased
When the demand curve has shifted to the right, this suggests demand has
increased
decreased
quantity demanded has increased
quantity demanded has increased
