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WorksheetsEconomics Final Exam
Total questions: 50
Worksheet time: 25mins
Name
Class
Date
1.
What forces people to make choices?
a)
need for shelter
b)
scarcity of resources
c)
surplus of goods
d)
desire for profit
2.
According to rational economic decision-making, we should accept an option when
a)
the costs outweigh the benefits
b)
there are no costs
c)
the benefits outweigh the costs
d)
there are no benefits
3.
What economic concept claims that for every choice you make there is a cost?
a)
scarcity
b)
specialization
c)
economic interdependence
d)
opportunity cost
4.
Economics is the study of
a)
how businesses compete against each other.
b)
how consumers respond to markets.
c)
how world markets interact.
d)
how people make decisions with limited resources.
5.
Societies must choose how to
a)
transfer resources.
b)
limit resources.
c)
allocate resources.
d)
invest resources.
6.
Which of the following is a method of allocating resources?
a)
First come, first served
b)
Lottery
c)
Equal for everyone
d)
All of the above
7.
The stock exchange is an example of a
a)
service.
b)
market.
c)
capital good.
d)
allocation method.
8.
What are the three economic questions?
a)
Who, what, where
b)
What to produce, how to produce, for whom to produce
c)
What to produce, how to produce, why to produce
d)
What to make, when to make it, for whom to make it for
9.
In a command economy, who answers the three economic questions?
a)
consumers
b)
producers
c)
the government
d)
businesses
10.
Which of the four represents the four factors of production?
a)
natural resources, capital, entrepreneurship, labor
b)
capital goods, services, government, entrepreneurship
c)
labor, capital, services, natural resources
d)
needs, wants, goods, and services
11.
Which of the following is an example of a capital good?
a)
coal
b)
a plumber
c)
factory equipment
d)
cash
12.
Demand is the willingness and _______ to buy goods and services.
a)
ability
b)
need
c)
want
13.
The ability for everyone to enter and compete in the marketplace is called
a)
open opportunity
b)
legal equality
c)
free contract
d)
profit motive
14.
Most people are inspired to start a business by the
a)
free contract clause.
b)
marginal benefit.
c)
open opportunity clause.
d)
profit motive.
15.
A man and a woman having the same rights under the law to start a business is an example of
a)
legal equality
b)
free contract
c)
modified free enterprise
d)
open opportunity
16.
A business based on a fad, like the pet rock, is most likely to
a)
have fluctuating profits, marked by quick increases and decreases.
b)
have a slow increase in profits over several years.
c)
make quick, large profits which then drop off dramatically.
d)
take a sharp loss and go bankrupt within a year.
17.
If dry pasta began to receive more consumer votes through increased purchases, producers likely would
a)
allocate fewer resources into the production of dry pasta.
b)
allocate more resources into the production of dry pasta.
c)
increase the amount of frozen pasta being produced.
d)
decrease the types of dry pasta being produced.
18.
The law of demand states that people
a)
buy more as the price increases and buy less as the price decreases.
b)
buy less as the price increases and buy more as the price decreases.
c)
allow income to determine their demand for a good.
19.
The law of diminishing marginal utility means that
a)
a consumer enjoys their last glass of water more than their first.
b)
a consumer enjoys their first glass of water more than their last.
c)
a consumer enjoys each glass of water the same.
20.
What is the amount of a good or service that a producer is willing to sell?
a)
Demand
b)
Utility
c)
Supply
21.
Substitutes are products that can be replaced with one another in case the price of one
a)
decreases.
b)
increases.
c)
stays the same.
22.
Complements are two products that are bought and used
a)
together.
b)
separately.
c)
often.
23.
Which of the following states that suppliers will sell more items at a higher price and less items at a lower price?
a)
the law of demand
b)
the law of supply
c)
the law of subsidies
24.
A shortage occurs when the amount supplied is ________ than the amount demanded.
a)
less
b)
more
c)
equal to the
25.
A surplus occurs when the amount demanded is ________ than the amount supplied.
a)
less
b)
more
c)
equal to the
26.
The point where the amount demanded is equal to the amount supplied is the
a)
demand elasticity.
b)
supply elasticity.
c)
equilibrium price/quantity.
27.
Which of the following would increase demand for fidget spinners?
a)
increasing the price
b)
a new study showing the benefits of fidget spinners while studying
c)
an increase in consumer income
28.
Which of the following would increase the supply of Chromebooks?
a)
improvements in the production process from new technology.
b)
increasing the price of Macbooks.
c)
A tax on Chromebook manufacturers.
29.
With complementary goods (like coffee and doughnuts), if you increase the price for one the demand for the other
a)
increases
b)
decreases
30.
With substitutes (like Pepsi and Coke), if you reduce the price for one the demand for the other
a)
increases
b)
decreases
31.
Why does scarcity exist?
a)
needs and wants are unlimited
b)
the allocation of resources is unequal
c)
resources are limited
d)
all of the above
32.
A supermarket running out of bananas is an example of
a)
scarcity
b)
a shortage
c)
utilization
d)
an opportunity cost
33.
The United States decides what goods to produce by letting
a)
only the government decide.
b)
the producers and government decide.
c)
the producers and consumers decide.
34.
To be a successful entrepreneur requires a willingness to
a)
play it safe
b)
borrow money
c)
take risks
d)
limit risks
35.
What does the saying "There is no such thing as a free lunch" mean?
a)
some things cost nothing
b)
most things cost something
c)
everything costs something
36.
An example of a trade-off is
a)
giving up going to a movie to spend time shopping.
b)
giving up going to a movie because it got bad reviews.
c)
going to a movie to see your favorite movie star.
d)
going to a movie because it got good reviews.
37.
What is another name for the production possibilities curve?
a)
production possibilities border
b)
production possibilities frontier
c)
production possibilities perimeter
38.
What does the point inside the PPC indicate?
a)
all resources are fully employed
b)
not all resources are fully employed
c)
more resources are required
d)
less resources are required
39.
The way a society uses scarce resources to satisfy its people's unlimited wants is called an economic
a)
system
b)
utility
c)
incentive
d)
grid
40.
Karl Marx predicted that in time
a)
workers would overthrow the industrial system.
b)
workers would be totally dominated by the industrial system.
c)
factory workers would revise the industrial system.
d)
factory owners would abandon the industrial system.
41.
The economic decisions of central planners often are wrong because they have little understanding of
a)
local economic conditions.
b)
bureaucracies.
c)
democracy.
42.
In economic terms, laissez faire means that the government
a)
supports socialism and capitalism.
b)
does not support capitalism.
c)
stays out of the marketplace.
d)
regulates the marketplace.
43.
In a factor market
a)
businesses are customers and individuals are producers.
b)
individuals are customers and businesses are producers.
c)
individuals buy goods and services.
44.
Moving steel mills from private ownership to public ownership is an example of
a)
globalization
b)
socialization
c)
nationalization
d)
privatization
45.
What does GDP stand for?
a)
Good Deal Program
b)
Gross Domestic Product
c)
Gross Domestic Produce
46.
Economists look to which of the following explanations for inflation?
a)
too much money in the economy
b)
demand for goods exceeds supply, as in wartime
c)
producers raise prices in order to meet increased costs
d)
all of the above
47.
The Federal Reserve System is
a)
a set of vaults used to store the national treasury
b)
twelve regional banks with a central decision-making board
c)
an agency in Washington, D.C., that must approve all banking policies
d)
a network of local banks with a special national charter
48.
The main difficulty of a barter system is finding
a)
a form of money that both parties will accept
b)
two people who have what each other wants
c)
a third party to evaluate the goods to be traded
d)
trade goods that will retain their value over time
49.
Money whose value is based on the type of material from which it is made is called
a)
commodity money
b)
fiat money
c)
near money
d)
representative money
50.
One of the economic properties of money is
a)
divisibility
b)
durability
c)
scarcity
d)
uniformity
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