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WorksheetsEconomics Exam
Total questions: 51
Worksheet time: 39mins
Based on the information in the graph, if the government limits the price of the item offered so that it cannot rise above $0.75, the result will be —
An excess supply
An excess demand of 240 units
A consumer surplus of $1.00
An excess surplus of 240 units
One potential risk from investing in the stock market is the loss of —
Investor tolerance
Purchasing power
Earned interest income
Portfolio diversification
Paying rent instead of purchasing tickets to a concert is an example of —
Which of the following conditions could explain the shift in the demand curve shown on the graph?
Farmers harvested a bumper crop of tomatoes.
Shoppers learned that cans of cooked tomatoes are spoiled.
Surveys found that people are eating more cooked tomatoes.
Eating cooked tomatoes was found to have more health benefits.
Which of the following is a non-price determinant of demand?
Subsidy
Productivity
Price ceiling
Consumer preferences
Based on the information in the graph, what is the equilibrium price of pizza?
$2.00
$4.00
$1.00
$5.00
On a supply and demand graph, supply will decrease and shift to the left when which of the following happens?
The number of firms leaving the industry increases.
There are fewer government regulations in place.
The total cost of inputs decreases.
Production taxes decline over a short period of time.
Which of the following statements is supported by the information in the demand schedule for gasoline?
Demand for gasoline decreases as the price decreases.
Price for gasoline remains constant as the demand increases.
As the price of gasoline decreases, the quantity demanded increases.
As the price of gasoline decreases, the quantity demanded decreases.
How do fluctuations to the international exchange rate of a nation's currency affect its balance of trade?
If a country's exchange rate increases, the country's balance of trade stays the same.
If a country's exchange rate increases, the country can import goods less expensively.
If a country's exchange rate decreases, a negative trade balance occurs for that country.
If a country's exchange rate decreases, the country's balance of trade stays the same.
According to the information in the excerpt, the described grant is provided for students who demonstrate that they —
Saved for college
Graduated with honors
Have financial challenges
Are first time attenders to college
One of the primary functions of financial institutions in an economy is to —
Offer incentives to businesses for investing
Prepare taxes for individuals and businesses
Create investment portfolios for venture capitalists
Provide access to capital for people and businesses
One effect of an increase in the amount of savings in an economy is —
What type of bank account is not insured?
What is one advantage to placing savings in a high-risk investment as opposed to putting savings in a low-risk investment?
Which of the following retirement investment options is usually offered as a benefit of employment?
Bonds
401(k)
Mutual Funds
College tuition reimbursement
Which investment is considered the most secure in a retirement plan?
401(k)
Public bond
Mutual fund
Individual retirement account
Loans that are obtained by offering an asset to guarantee repayment of the loan are considered —
Default loans
Secured loans
Unsecured loans
Repossession loans
A first step to beginning a savings program would most likely be to —
Obtain credit
Set financial goals
Open a checking account
Sign up for direct deposit
A line of credit that allows a borrower to repeatedly use it within a certain monetary amount is considered to be —
A secured loan
Open-ended credit
Close-ended credit
A retirement account
Based on the information in the chart, an advantage to getting a federal student loan as opposed to a private loan would be the —
Lower interest rate
Easier application process
Longer period of repayment
Amount of money available for loan
Which of the following actions would improve a credit score?
Paying off all debts
Consolidating credit card balances
Checking credit reports on a regular basis
Keeping credit card balances as high as possible
The most effective way to manage credit card debt is by —
Paying the minimum balance
Paying off the balance each month
Working a part-time job to pay for credit
Finding a credit card with the lowest interest rate
An important consideration to examine when deciding to declare personal bankruptcy is the —
Cost of using a collection agency
Amount of interest paid on credit cards
Impact it has on future credit options
Number of investments made in the last year
One of the benefits of renting a home is that the cost of maintenance is —
Refunded with the deposit
Cheaper in a rental property
Covered by renters insurance
The responsibility of the landlord
Based on the information on the table, which economic condition is characteristic of all three nations?
Low GDP per capita
High levels of inflation
Low inflationary levels
High levels of unemployment
Which of the following is not an annual cost of owning a home?
Paying property taxes
Paying for new furniture
Keeping up with repairs and maintenance
Making payments on principal, interest, and insurance
The Federal Reserve System designed in the manner described in the box resulted in the creation of —
A reserve central bank location
A decentralized system of banks
New methods for printing money one large
Depository for U.S. currency
The basic idea of choice presents which of the problems in economics?
People get to decide what they want.
Businesses can sell what they want.
Decisions produce costs.
Choice is a way of life.
Which of the following type of tax is collected by state and local governments but not by the federal government?
Tariffs
Sales tax
Excise tax
Income tax
Which of the following best completes the diagram?
Characteristics of Partnerships
Characteristics of Free Enterprise
Characteristics of Sole Proprietorships
Characteristics of Corporations
Which of the following best completes the graphic?
Stock Exchange
Federal Reserve System
Treasury Department
Washington, D.C.
In the U.S. free enterprise system one of the primary roles of the government is to —
Employ a majority of the workforce
Guarantee that investors' profits are secure
Ensure the safety of products through regulation
Provide new sources of funding for technology start ups
Scarcity is a basic economic problem because —
Resources are limited
Governments limit production
Opportunity costs limit demand
People have trouble making choices
Recently the price of a popular perfume has increased by $10. How will the price change likely affect the quantity demanded and supplied?
Supply will stay the same, and demand will increase.
Supply will decrease, and demand will increase.
Supply will increase, and demand will decrease.
Supply will increase, and demand will stay the same.
One result of competition in a free enterprise system is —
Fewer consumer choices
Lower prices for products
Steady wages and incomes
Improved safety conditions
In a free market society, the answer to the question about how much to produce is determined by —
Census data
Profit projections
Consumer demand
Government quotes
What type of market structure is described by the information in the box?
Oligopoly
Natural monopoly
Pure competition
Monopolistic competition
Jenny wants to buy a computer and a new television before she leaves for college. She only has enough money to purchase the computer. Which of the following is the opportunity cost of purchasing the computer?
One of the benefits of the U.S. free enterprise system is the —
Amount of choices for consumers
Guaranteed returns on investments
Lack of union participation by workers
Equal distribution of goods and services
Which characteristic of the U.S. free enterprise system creates the incentive to work, save, and invest?
Social Security system
Voluntary exchanges
Private property ownership
Consumer sovereignty
Which of the following is most characteristic of the U.S. free enterprise system?
Government price controls
Nationalization of energy companies
Markets that respond to consumer demand
Public ownership of the factors of production
Which of the following accounts for why countries specialize in particular trade products?
Government regulations
Variation in the size of markets
Unequal distribution of resources
Variety in the types of economic systems
High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered into a period of —
Recession
Stagflation
Expansion
Investment
Money that has value simply because the government says it does is called —
Credit
Currency
Fiat money
Representative money
Based on the information in the table, what gain did Benin make by specializing in tractors?
40 tractors
12 tractors
28 tractors
15 tractors
Which economic concept does the information in the table illustrate?
Absolute advantage
Balance of trade
Factors of production
Comparative advantage
Which of the following best completes the graphic?
Stock Exchange
Federal Reserve System
Treasury Department
Washington, D.C.
Based on the information in the table, what gain did Benin make by specializing in tractors?
40 tractors
12 tractors
28 tractors
15tractors
Which economic concept does the information in the table illustrate?
Absolute advantage
Balance of trade
Factors of production
Comparative Advantage
Based on the information in the table, which of the following would be Ivory Coast's diamond
output available after trade?
18 diamonds
20 diamonds
30 diamonds
50 diamonds
Money that has value simply because the government says it does is called —
credit
currency
fiat money
representative money
