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EPF Final Review #5: Economics

Total questions: 53

Worksheet time: 28mins

Name
Class
Date
1.

Economics studies....

a)

How weath is distributed

b)

How wealth is created

c)

How individuals and societies make decisions about ways to use scarce resources to fulfill wants and needs

2.

Macroeconomics focuses on...

a)

Individuals, businesses and markets

b)

Markets, supply and demand

c)

Investment and consumer decisions

d)

Countries and governments

3.

Businesses will produce what customers demand. This is called...

a)

Consumer Demand

b)

Consumer Sovereignty

c)

Consumer

Choice

4.

Services include...

a)

A landscaper

b)

A shovel

c)

A plant

5.

Businesses and individuals that provide good are called producers.

a)

True

b)

False

6.

Select all the goods.

a)

Police

b)

Phone

c)

Lawyer

d)

Clothes

7.

Microeconomics focuses on...

a)

Individuals and businesses

b)

The economy as a whole

c)

Countries and governments

8.

An opportunity cost is...

(mark all that are correct)

a)

what a person gives up when making a particular choice.

b)

when you only have one choice.

c)

also called a "trade off."

d)

something that can be financial and/or personal.

9.

Consumers create demand for products.

a)

True

b)

False

10.

The Law of Demand is...

a)

The demand for a product will lower as the price increases, and demand will rise if the price decreases.

b)

The demand for a product will rise as the price increases, and the demand will lower if the price decreases.

11.

The demand of which good is elastic?

a)

Gas

b)

Jewelry

c)

Medicine

12.

The law of supply is...

a)

Lower prices increase the supply of a good, and higher prices will decrease the supply of a good.

b)

Higher prices increase the supply for a good, and lower prices will decrease the supply of a good.

13.

Which good has inelastic demand?

a)

art

b)

medicine

c)

sports cars

14.

Everything is naturally scarce, that is why we must make choices.

a)

True

b)

False

15.

Used to measure the production of an entire country in one year

a)

FICO

b)

GDP

c)

FDIC

d)

CPI

16.

When the average price of goods go up quickly

and stays high for a period of time time

a)

Recession

b)

Deflation

c)

Inflation

d)

Shortage

17.

Used to measure the change in prices for consumer goods and services

a)

FDIC

b)

FICO

c)

CPI

d)

PIN

18.

Who is concerned about marginal cost?

a)

Producers, becuase it is about the cost to produce one more item.

b)

Consumers, becuase it is about the cost to purchase one more item.

19.

Which is NOT an example of a shortage?

a)

No hand sanitizer at Costo during COVID

b)

The amount of clothes you are able to buy

c)

No bread at the store right before the snowstorm

20.

When someone decides to not buy something becuse they can't afford it, that is...

a)

The Substitution Effect

b)

The Income Effect

c)

Marginal Cost

21.

The amount a consumer is willing to pay from one more item is...

a)

Marginal Cost

b)

Marginal Utility

c)

Marginal Benefit

22.

If the price goes up, the products' supply will ___________

a)

Go up

b)

Not change

c)

Go down

d)

It depends

23.

If the price goes up, demand for a product will _________

a)

Go up

b)

Not change

c)

Go down

d)

It depends

24.

If you choose to buy the Walmart brand of soda instead of a Pepsi, that is...

a)

The Income Effect

b)

Marginal Effect

c)

Substitution Effect

25.

When the 5th cookie you eat doesn't satisfy you as much as the first,

that is an example of...

a)

Marginal Benefit

b)

Marginal Utility

c)

Marginal Cost

26.

For the DECIDE Decision-Making Model, each letter stands for a step in the process. The first "D" stands for ________ the problem

a)

Determine

b)

Define

c)

Deduct

27.

For the DECIDE Decision-Making Model, each letter stands for a step in the process. The first "E" stands for ________ the criteria

a)

Establish

b)

Estimate

c)

Exclude

28.

For the DECIDE Decision-Making Model, each letter stands for a step in the process. The "C" stands for ________ all the alternatives

a)

Check

b)

Communicate

c)

Consider

29.

For the DECIDE Decision-Making Model, each letter stands for a step in the process. The first "I" stands for ________ the best alternative

a)

Identify

b)

Insert

c)

Imagine

30.

For the DECIDE Decision-Making Model, each letter stands for a step in the process. The second "D" stands for ________ and implement a plan of action

a)

Design

b)

Develop

c)

Determine

31.

For the DECIDE Decision-Making Model, each letter stands for a step in the process. The second "E" stands for ________ the solution

a)

Evolve

b)

Evaluate

c)

Estimate

32.

What is not included in the Four Factors of Production?

a)

Land

b)

Money

c)

Capital

d)

Labor

33.

An example of "Land" for the Four Factors of Production whould be:

(Mark all that are correct)

a)

The land the Starbucks in built on.

b)

The coffee beans

c)

The water to make the coffee

d)

The asphalt to make the parking lot.

34.

An example of Capital as one of the Four Factors of Production would be:

(Mark all that are correct)

a)

The espresso machine

b)

The aprons

c)

The syrups to flavor the drinks

d)

The Barista

35.

In economics, demand is...

a)

The amount produced by a seller

b)

The amount ordered by a customer

c)

The amount buyers are willing and able to buy

36.

What are the Three Basic Economic Questions?

a)

Who will produce goods?

Where will good be produced?

What will good be used for?

b)

What is innovative?

What is efficient?

What is equitable?

c)

What will be produced?

How will the goods and services be produced?

Who will they be produced for?

37.

What is not one of the 4 Main Types of Economic Systems?

a)

Mercantilism

b)

Capitalist

Free-Market Economies

c)

Mixed Economies

d)

Command

Economies

e)

Traditional

38.

An advantage of a Capitalist Free-Market Economy is:

(Mark all that are correct)

a)

Efficiency

b)

Creativity & Innovation

c)

Builds Wealth

d)

Social and Economic Equity

39.

An advantage of a Tradtional economy is:

(Mark all that are correct)

a)

Strong family and community bonds

b)

Loyalty

c)

Progressive & Innovative

d)

Supportive

40.

An advantage of a Command economy could be:

(Mark all that are correct)

a)

A vision of economic equity

b)

Focus on community

c)

Highly innovative and effecient

d)

Greater governmental control can help protect environment, consumer & labor.

41.

The United States is a ___________ economy.

a)

Command

b)

Mixed

c)

Capitalist

d)

Traditional

42.

Most countires are _________ economies.

a)

Capitalist

Free-Market

b)

Command

c)

Mixed

d)

Traditional

43.

Something that motivates consumers and businesses to do something is called....

a)

An incentive

b)

An advantage

c)

A prize

44.

The supply and demand for a product determines its...

a)

Popularity

b)

Production

c)

Price

45.

Revenue ($ Taken In) - Costs ($ Spent) = ________

a)

Profit

b)

Total

c)

Balance

46.

An example of a depreciating asset would be __________

a)

A home

b)

A car

c)

An investment account

47.

An asset that loses value over time

a)

Appreciating

b)

Depreciating

c)

Deducting

48.

When demand equals supply, we have...

a)

Equilibrium

b)

Equality

c)

Agreement

49.

A farmer's market is an example of what type of market structure?

a)

Monopoly

b)

Monopolistic

Competition

c)

Oligopoly

d)

Perfect Competition

50.

Monopolistic Competition involves...

a)

A standardized product

b)

A single seller

c)

Differing products that serve the same purpose

51.

What are examples of oligopolies?

a)

Cellular,

airlines, and

drug companies

b)

Agricultural markets

c)

Public Utilities

d)

Fast food, clothing stores and grocery stores

52.

An monopoly exists when...

a)

There are many sellers that sell different types of products, but they all serve the same purpose

b)

There is really only one seller of a particular product or service

c)

There are only a few sellers dominating the market

d)

There are multiple sellers offering the same yype of good or service

53.

Measures how comfortable

you are based on the things you own

a)

Consumer Price Index

b)

Standard of Living

c)

Economic class