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WorksheetsEconomics Final Study Guide
Total questions: 45
Worksheet time: 25mins
Which outcome would most likely occur after a significant increase in the minimum wage?
People would likely make less money
The elimination of several low-paying jobs because companies can't afford to pay those workers more.
An increase in unemployment rate
Higher skilled workers.
Which scenario is an example of a monopoly?
A local water company is the sole provider of water for a small town.
A farmer produces green beans for sale at a farmers’ market.
A small number of cereal companies produce most of the cereal on the market.
A dry cleaner specializes in environmentally friendly cleaning methods
Which statement completes the diagram?
Economic decline
Decreased human capital
Increased government regulation
Economic Growth
Competition among businesses helps an economy by causing businesses to
store goods for later sale
set high prices for goods.
produce goods efficiently.
share costs with each other.
How have international trade agreements affected societies?
Societies do not communicate much anymore.
Societies rely more on imported goods traded into their country.
Societies are more independent & do not rely on other countries
Societies have reduced their long-distance transportation
Use the list below to answer the question.
1. Treating a friend to lunch
2. Buying her grandmother a present
3. Seeing a movie
4. Buying a new sweatshirt
Maria has enough money to do only one thing on her list. After careful consideration she has ranked her choices as indicated above and decides to treat a friend to lunch. What is the opportunity cost of Maria’s decision?
Treating a friend to lunch
Buying her grandmother a present
Seeing a movie
Buying a new sweatshirt
Which action will MOST LIKELY lead a person to increase personal wealth?
earning a higher income
spending more on expenses
traveling around the world
taking out high-interest loans
Which of the following is NOT a resource?
water
food
land
jewelry
A local seafood supplier has changed the price of crawfish from $3 to $5 per pound. Which of the following scenarios would best account for the supplier's decision?
A popular grocery store is having a sale on oysters.
A crawfish festival has increased demand.
A study has come out on the health benefits of shrimp.
An oversupply of crawfish has lowered demand.
Which measurement BEST indicates the economic growth of a country?
average hourly earnings
the Consumer Price Index
the rate of new employment
per capita Real Gross Domestic Product
Which groups allocate resources in a market economy?
households and businesses
governments and businesses
households and the federal government
state and local governments
The price of gasoline in the United States in the 1970s increased greatly as oil imports decreased. What effect did this change have on the economy?
There was less investment in solar energy
cars that used less gasoline became more popular
gasoline refineries acted to increase their use of oil
the number of people using public transportation decreased
Which statement describes a role of government in a free enterprise system?
determining which goods should be produced
encouraging citizens to become entrepreneurs
deciding which businesses are needed
controlling career paths for citizens
In a business partnership, what is the role of a limited partner?
employee
spokesperson
manager
investor
In a pure free enterprise system, individuals either purchase health insurance or pay for any medical service needed. How would a socialist economic system be different?
Individuals would have a wide range of health care options
Individuals would choose health care options chosen by the Government
Individuals would be free to choose whatever health care they wanted.
Health care would be ran by private individuals, not the government
Which phrase best describes the effect of an increase in steel imports from a foreign country into the U.S?
Less foreign steel bought by Americans
More steel sold by U.S steel companies
More steel companies formed inside the U.S
Fewer good sold by U.S steel companies
When an automobile manufacturer builds 200,000 units of its top selling model, the company is responding mainly to which question?
Where to produce?
How to produce?
What to Produce?
When to produce?
In what system does the government control all of the means of production, including private property, and make all decisions on how resources are to be used?
socialism
communism
capitalism
mercantilism
The role of the United States government in the domestic economy is best described as
Encouraging higher prices on products
Promoting competition and economic growth
providing equitable distribution of resources.
maintaining ownership of major utilities.
How does a company raise money through stock?
by allowing new investors to join as partners
by securing loans from banking institutions
by selling shares of ownership to the public
by reinvesting profits from successful ventures
What results from investment in human capital?
Decreased gross domestic product
Improved standard of living
Reduced flexibility of workers
Increased voter participation
Which characteristic describes a disadvantage of a sole proprietorship?
double taxation
increased regulation
less investor control
unlimited personal liability
Read the excerpt and answer the question.
The British economist John Maynard Keynes wrote that in 1914, a middle-class resident of London “could order by telephone, sipping his morning tea in bed, the various products of the whole earth, in such quantity as he might see fit, and reasonably expect their early delivery upon his doorstep. . . .”
In this information, Keynes is describing the effects of which development?
the impact of economic depression
the spread of international socialism
the introduction of protectionist policies
the globalization of trade and communications
A large corporation comprised of smaller companies that produce very different products is a
monopoly
conglomerate
franchise
partnership
Which column heading should replace the question mark?
fixed cost
average cost
marginal cost
average variable cost
What change would most directly effect the supply of cereal available in the market?
A decrease in state tax rates
A government subsidy for dairy farms
A new grocery chain opening for business
An increase in the price of grain
Which factor is a major advantage of free enterprise economies compared with centrally planned economies?
slower rate of change in business cycles
greater variety in consumer choice
more equitable distribution of goods
more extensive social welfare programs
In which market structure do many producers sell products that are identical to one another?
monopoly
monopolistic competition
pure competition
oligopoly
Which is the BEST description of the U.S. minimum wage?
amount paid for part-time work
pay rate determined by labor unions
lowest rate legally paid to any worker
starting pay for workers entering any new job
How does the Federal Reserve System act to reduce inflation?
reduces income taxes
increases interest rates
increases business taxes
reduces government spending
Identify the THREE components that generally influence income.
Skill level
Education level
Supply and demand for the job you work
Regulations
1. Means of production are privately owned.
2. Quality of product availability are high.
3. Prices on merchandise are low.
These characteristics describe a market that is guided by:
a strict set of regulatory laws.
the practice of free competition.
a scarcity of natural resources
the demands of organized labor
Which scenario is an example of a trade-off?
A mom buys diapers and groceries instead of a new outfit
A teacher pays her rent and utility bills on the first of the month
A doctor returns her new computer because it does not work
A student exchanges her cell phone for a different model
When the government imposes a price ceiling on a product like apartment rent prices, what will most likely occur?
Demand for apartments will decrease.
The rent price on apartments will be less than the normal rate
No one will buy apartments because of cheaper prices
Landlords will make more because of cheaper prices
What did Adam Smith believe was the result of influence by an “invisible hand”?
"[B]y directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention." —Adam Smith, Wealth of Nations
regulations to ensure the quantity and availability of goods from vendors
competition that improved the quality of goods and lowered prices
manufacturing process to produce large quantities with minimal profits
industry monopolies that evolved because of immense profits
Local businesses would MOST likely oppose the proposed tax increases because new taxes could
reduce worker productivity
attract outside business
leave consumers less money to spend
increase infrastructure spending
Identify the term for this definition:
There are many buyers and sellers, a standardized product, and easy entry into and out of the market.
pure competition
pure monopoly
oligopoloy
monopolistic competition
Which action would MOST LIKELY lead to increased income?
owning a large house
retiring at a young age
graduating from college
traveling around the world
Select the THREE characteristics of perfect competition in a free market
Freedom to enter & exit the market as a business owner
Consumers have less products to choose from.
All companies can compete selling the same product
Consumers have many products to choose from
Consumers have many products to choose from
What is the MOST likely result of a policy intended to stimulate economic growth?
inflation will rise
unemployment will rise
economic equity will increase
economic efficiency will increase
What is the MOST likely result of a policy intended to stimulate economic growth?
People with a professional degree earn more than twice as much as people with only a bachelor's degree.
People with a master's degree earn nearly twice as much as people with only a high school degree.
People with a doctoral degree are half as likely to be unemployed as people with a bachelor's degree.
People with some college are half as likely to be unemployed as people with only some high school education.
What are the four factors of production required for industrialization?
capital, entrepreneurs, labor, natural resources
specialization, trade, markets, consumerism
interest, profit, demand, disposable income
goods, services, wages, technology
A partnership is owned by:
the government
one person
a group of investors
two or more people
Which feature of the Soviet economy limited the ability of individuals to make economic choices?
central planning
mercantilism
collective bargaining
free enterprise
In this scenario, what is the opportunity cost?
Seth has considered three different ways to spend his Saturday: go to the beach, start on his homework, or mow yards in order to earn extra spending money. Although he enjoys the beach, Seth decides that will be his third choice. He also decides he will have plenty of time to do his homework on Sunday, so he makes that his second choice. It is not too hot outside, so he decides that mowing yards is his best choice.
Making money by mowing lawns on Saturday
Getting his homework done on Saturday
Seeing his friends at the beach on Saturday
Buying gasoline for the lawn mower
