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WorksheetsACADEC Summer 2025 ECON Test 1
Total questions: 100
Worksheet time: 2hrs 2mins
The study of how people make decisions to satisfy their needs and wants
Scarcity
supply and demand
economics
Goods and services a country produces and sells to other countries
imports
exports
demand
supply
Goods and services brought in from other countries
supply
exports
imports
tariff
A tax on imports
tariff
import tax
supply
embargo
Which is an example of a trade barrier?
Japan is allowed to send as many electronic products to the U.S. as they want.
The U.S. freely trades with other countries with no restrictions.
A high tax is placed on all diamonds received from Africa.
Free Trade
Tariffs and quotas raise prices of imported goods
Raise prices for consumers
Lower prices for consumers
May slow improvements or innovations to lower costs
Trade Barriers
Influence consumers into purchasing domestically produced goods
•Elimination of businesses that are not competitive
Access to more product markets
Increased competition
"Comparative Advantage
country's ability to produce a product relatively more efficiently, or at a lower opportunity cost
. ability to carry out a particular economic activity more efficiently than another
Absolute Advantage
country's ability to produce a product relatively more efficiently, or at a lower opportunity cost
ability to carry out a particular economic activity more efficiently than another
What is inflation?
decrease in prices of products in an economy
rise in most prices of products in an economy
rise in some prices of products in an economy
increase in average price levels of all products in an economy
Which of the following is NOT an effect of inflation?
purchasing power changes
value of wages changes
interest rates change
prices stay the same
In the long run, the economy of the United States has
steadily grown over time.
steadily declined over time.
behaved in ways that cannot be explained by modern macroeconomics.
experienced drastic fluctuations, but it is back to its old levels now.
GDP is an important economic measurement because it
provides valuable data on unemployment rates.
measures the combined total of all intermediate and final goods produced.
measures all final goods and services produced by a country.
includes all economic activity, incluing financial transactions and purchases of used goods.
When the economy experiences expansion, it is most likely the case that
GDP is increasing, unemployment is increasing, and inflation is decreasing.
GDP is increasing, unemployment is decreasing, and inflation is increasing.
GDP is decreasing, unemployment is decreasing, and inflation is increasing.
GDP is decreasing, unemployment is decreasing, and inflation is decreasing.
All of the following people are considered UNEMPLOYED except
Molly, who filled out three job applications this week.
Ryan, who currently serves in the military.
Kyle, who only worked for 30 minutes last week.
Brittany, who was recently fired from her job.
When the unemployment rate is relatively high,
the growth in real GDP is high.
the growth in real GDP is low.
inflation is also relatively high.
the amount of physical capital available has decreased.
GDP per capita is found by dividing a country's GDP by it's
population.
average birth rates.
number of households.
A higher GDP generally correlates to a(n) ___________ standard of living.
higher
lower
unrelated
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 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?
What is supply?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
What is demand?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
Why would a business want to spend their money to invent new items?
They can save money
They will fix broken items
They can buy cool goods
They can make new goods to sell
What is supply?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
What is demand?
the amount of an item you have
how many people want your good/service
the money you have left over after you paid your bills
none of these
What is profit?
the money you have left over after you paid your bills
how many people want your good/service
the amount of an item you have
none of these
Opal saved money in the bank. From doing this, she earned _______.
Interest
Invest
Apple saved some of their money to create the new iPhone X. This choice means Apple _______ in their company.
Interest
Invest
Which of the following will increase your profit for selling hot chocolate?
Use expensive materials
Lower the price
Give each buyer more hot chocolate
Use cheaper materials
Which of these is a way that a business can use its money wisely/invest in their business?
It can use more expensive resources.
It can invent new goods.
It can buy machines to make goods.
All of the above
A new bakery comes to town. Now there are more options for a bakery. What will happen to the price?
For the market, Opal is selling brownies. Dyamonde is also selling brownies. What will happen to the price?
An economy based on private ownership of business and consumers freely choose goods and services.
Capitalism
Communism
Traditional
Mixed
The value of all the goods and services that a country produces in a year.
Gross Domestic Product (GDP)
Factors of Production (FOP)
Free-Market Economy (FME)
when a country becomes skilled at producing one good or service
specialization
scarcity
profit
labor
SSEPFb
SSEPF2
SSEPF5
SSEPF2a
SSEPF4a
SSEPF1a
SSEPF4a
Why does the government tax the people?
Taxes pay for government programs and services, such as schools and the military.
The government does not tax the people.
Taxes allow businesses to make more money.
The government taxes people so that no one can get too rich.
When people sell their labor to a business they earn money. What is this money called?
taxes
income
profit
economy
Which of the following was NOT a reason for the relative economic prosperity in the 1920s?
increased consumer buying aided by easy credit
increased savings by most Americans
availability of oil for fuel and innovations for its use
the development of the assembly line
pent up demand from the war which had to be satisfied by material goods
The most important change that the census of 1920 showed in America was that:
the frontier was closed
urban dwellers now outnumbered rural ones
most people had electricity
population had doubled in a decade
a majority of the people owned automobiles
All of the following were forces that helped to bring about Prohibition EXCEPT
Dry states wanted a national law because their citizens could go to wet states to subvert their laws
businesses felt that productivity could be increased if "blue Monday's" could be eliminated
the temperance movement had a close alliance with the women's movement and the success of one helped the success of the other
The Evangelical Protestant churches were strong supporters of it
in order to prove their patriotism most ethnic groups wanted it
Business leaders who wanted to promote a higher level of consumption of their products and get rid of the old ideas of thrift developed:
advertising
installment buying
scientific management
consumer savings
retail selling
Which of the following became a symbol for corruption of the Harding administration?
Muscle Shoals
Sacco-Vanzetti
Teapot Dome
McNary-Haugen
Greenwich Village
All of the following could be considered weaknesses in the economy in the US in the late 1920s EXCEPT:
durable goods
textiles
service industry
agriculture
real estate
What did the Kellogg-Briand Pact that was signed by 35 nations including the US do?
provided for arms limitation
put the signatures on the gold standard
made it illegal to travel on a ship going into a war zone
kept countries from the further colonization of Africa
outlawed offensive war
Symbolic of the popular fears of immigrants, communism, change, and diversity, this group became very powerful during the 20s with a reputed 5 million members and hatred for anyone who was foreign, Catholic or Jewish, liberal or different. What was the group?
American Legion
NAACP
Ku Klux Klan
Mafia
American First Committee
The Immigration Act of 1924 was written to specifically favor the arrival of which of the following groups to US shores?
Asians
Africans
Southern Europeans
Northern Europeans
South Americans
All of the following statements concerning the 3 Republican presidencies of the 20s and conditions that existed in the nation are correct EXCEPT:
Republicans sought to serve the public good with less direct government action
Government agencies sought to cooperate with big business rather than to regulate it
Corruption among public officials did appear as some individual exploited public resources for private profit
US foreign policy abandoned internationalism for a return to isolationism and military unpreparedness
Supported by the federal government, labor unions grew in power and influence
Herbert Hoover chose which motto as his personal campaign slogan during the 1928 presidential election to stress his dedication to the bootstrap theory and self-reliance?
"The Buck Stops Here"
"The New Nationalism"
" The New Deal"
"Rugged Individualism"
"The New Frontier"
This 1924 law established a quota system to regulate the influx of immigrants to America. The system restricted the new immigrants from southern and eastern Europe and Asia. It also reduced the annual total of immigrants.
Fordney-McCumber Act of 1924
Neutrality Act of 1924
Prevention Act of 1924
Emergency Quota Act of 1924
People would purchase things and make partial payments on set intervals: installment plans, led to a lot of debt: to purchase, on a promise, in fact or in law, to make payment at a future day. THIS WAS ONE OF THE CAUSES OF THE 1929 STOCK MARKET CRASH.
Loan wolves
Bank Loans
Buying on Credit
Checks
Increased tariffs made it difficult for European nations to conduct trade in order to pay off war debts; protected US industries from foreign competition: pushed tariff rates on manufactured goods to an all-time high, helped US manufacturers by enabling them to keep prices high and increase profits.
Revenue Act
Selective Service Act
Expediting Act
Fordney-McCumber Act
The president of the United States from 1929 to 1932 He was a republican who ran on a campaign of prohibition and prosperity. The early years of his presidency brought about a great deal of prosperity for the United States. Many people blamed him for the stock market crash.
Calvin Coolidge
Herbert Hoover
Harry Daugherty
Harry Truman
Was the US Attorney General during the Harding Administration. He faced a controversial three years in office and saw his name surface in connection with the veterans bureau irregularities.
Harry Daugherty
Joseph Smith
Woodrow Wilson
Oscar Wilde
1923-1929, replaced the corrupt Harding, restoring honesty to the presidency. He was a pro-business president, and continued the laissez-faire policies of Harding. This allowed for short-term prosperity from 1923-1929. He also accelerated tax cuts and wanted to keep tariffs in place.
Calvin Coolidge
John Calvin
Harry Daugherty
Grover Cleveland
Herbert Hoover chose which motto as his personal campaign slogan during the 1928 presidential election to stress his dedication to the bootstrap theory and self-reliance?
"The Buck Stops Here"
"The New Nationalism"
" The New Deal"
"Rugged Individualism"
"The New Frontier"
