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WorksheetsEcon - Benchmark 1 Review
Total questions: 72
Worksheet time: 36mins
When producers offer more of a good as its price increases and less as its price falls, this defines the
law of demand
law of supply
change in demand
change in supply
The willingness and ability of a producer to make a product is referred to as
quantity supplied
quantity demanded
supply
demand
Movement along a supply curve demonstrates
a change in quantity supplied
a change in quantity demanded
a change in supply
a change in demand
A shift in a supply curve demonstrates
a change in quantity supplied
a change in quantity demanded
a change in supply
a change in demand
Which of these demonstrates an example of a supply curve? (More than one answer)
Which of the following supply curves demonstrates a decrease in the quantity supplied?
A decrease in supply is demonstrated by which of the following?
A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?
The prices for houses steadily increase, causing more people to want to sell their homes. Which of these demonstrates this concept?
What might cause the supply curve to shift left?
price of a complementary good decreases
large number of producers enter the market
computer processing improves production
a new law is passed requiring all new motorcycles to have back-up cameras
Which of the following leads to an decrease in supply?
an increase in the cost of raw materials
diminishing marginal returns
a decrease in the cost of raw materials
a change in the law of supply
Which of these do the producers of an item hope to achieve when adopting new technology?
a shift of the supply curve for that item to the left
repeal of the subsidy for that item
inelasticity of supply of that item
a shift of the supply curve for that item to the right
Which of the following leads to an increase in supply?
Gallery Furniture will raise prices on all wood furniture
six new companies begin producing smart phones
price of a complementary good goes down
increased cyclical employment
Which of these best describes the influence of high prices on the behavior of producers?
High prices are an incentive for producers to produce more.
Producers will use fewer raw materials and less labor
High prices are an incentive for producers to produce less.
Prices have no incentive for producers.
A product may be amazing, but unless consumers are __ and __ to purchase it, it's not in demand.
willing
wishing
able
planning
In terms of resources, what do households provide for businesses?
loans
savings
labor
private goods
What are the four main parts of the circular flow diagram?
Product Market, Stock Market, Factor Market, Fish Market
Product Market, House Market, Factor Market, Good Market
Factor Market, Product Market, Households, Businesses
Factor Market, households, Stock Market, super market
Where are factors of production (land, labor, etc) exchanged in the circular flow model?
Factor Market
Product Market
Firms
Individuals
Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?
Product Market
Factor Market
Firms
Individuals
What causes a change in quantity demanded?
A change in consumer income
A change in production possibilities
A change in the number of sellers
A change in price
In college people can major in a wide variety of fields including medicine, journalism, business and design among others. This is an example of the concept of
scarcity.
specialization.
elastic demand.
progressive taxation.
Susan offers to trade her old iPod for Claudia's cell phone and Claudia accepts. Assuming both products work perfectly, we can conclude that
both people have gained because the exchange was voluntary and non-fraudulent.
Susan places the same value on cell phones as she does for iPods.
neither party has gained because the exchange was fraudulent.
Claudia is now happier than Susan.
If a point lies on the curve this means the company/country/individual is being efficient. If a point lies inside the curve, what does that tell?
They are being over efficient
They are being inefficient
It is not impossible with the given resources
They are still efficient, just at another point
A consumer would be best defined as...
A person who purchases goods and services for personal use
A business that consumes other businesses
A business or person who creates a product to sell
A person who purchases goods in order to resell them.
A __________ is work people do for consumers.
Service
Goods
Durable goods
Consumers
The economic problem is that
resources are limited and wants are limited.
resources are unlimited and wants are limited.
resources are limited and wants are unlimited.
resources are unlimited and wants are unlimited.
Dollars are also known as...?
votes
rubles
power
ability
In consumer sovereignty, _____ is king.
Producer
Consumer
Government
Business
What is one advantage of a Command Economy?
Individual freedom for everyone
Health and public services are available to everyone at little or no cost.
The government rarely interferes.
Able to adjust to change gradually
A large part of a command economic system is controlled by:
a centralized power; federal government
No one. It's an economy based off of individual freedom
In a market economy, who answers the 3 economic questions?
Buyers and sellers
The government
Traditions and customs
Your mom
A(n) ____ is a method a society uses to answer the 3 economic questions.
Economic System
Market Structure
Type of Government
Planning Board
The idea that buyers and sellers willingly enter into economic transactions.
Voluntary Exchange
Rational Choice
Consumer Sovereignty
Free Enterprise
What type of Economic System does the U.S. actually have?
Mixed economy
Command economy
Traditional Economy
Planned Economy
In a market economy, ____ creates an incentive for individuals to work, save, & invest.
Private Property Rights
Factors of Production
Free Enterprise
The Invisible Hand
The ____ are the resources necessary to create goods and services.
Factors of Production
Means of Assembly
Free Enterprise
Laissez Faire System
In a Market Economy, who owns the Factors of Production?
Individuals
The government
The president
The military
Which statement would be MOST important to include in a summary of the article?
New companies rely on supply and demand to decide which goods they want to produce.
People feel that the too much involvement in the economy by the government is not beneficial.
The American economy is mostly a free-enterprise system with some control from the government.
Much of the labor force in the United States is transitioning from farms to cities for work.
The mixed economy has private and public sectors.
True
False
Why do all societies have to make decisions about how resources will be used?
People are greedy
There are not enough resources for those who want them
Resources are too expensive for most people
Because there is a huge gap between the rich and poor
Scarcity is defined as a limited supply of resources and...
limited wants for those resources
unlimited resources
limited resources
unlimited wants for available resources
People usually specialize in a job a skill they are good at or like to do.
True
False
When the production of a good or service is broken down into different steps with different workers performing each step, it is called ___________.
division of goods
division of labor
division of skills
division of steps
The amount of work a worker can perform in a given period of time (e.g., customers served per hour) is referred to as (a)
This characteristic of a mixed economy states that the vast majority of labor, resources, and capital goods are owned by individuals rather than by the government.
Private Property
Freedom of enterprise and choice
Motive of Self-Interest
Competition
The government pays for public goods and services through —
donations from wealthy politicians
donations from foreign nations
revenue from sales and income taxes
revenue from the lottery
The (a) invests money into machines known as (b) and hires workers known as (c) to bring the raw materials known as (d) together to produce goods and services
