WorksheetsEdgenuity Economics Cumulative Exam Review Part 1
Total questions: 40
Worksheet time: 27mins
Limited resources and unlimited wants lead to:
(a)
Three types of resources
land
labor
capitalism
capital
regulations
Which of these count as capital? Select all that apply
A master chef who opens a pizzeria
A factory used to make toys
A miner who extracts coal from the ground
The truck that a food truck sells food out of
The gas that powers a delivery truck
What is 'land' in economics?
Any natural resource used to produce goods and services (anything that comes from the land)
Employees that work for a business
A board of investors that lends money to a business
The real estate a business is built on
The more scarce something is, the_______ customers are willing to pay for it.
more
less
What are the three questions of economics?
What to produce?
How to produce it?
For whom do you produce it?
When do you produce it?
Is it fun to produce it?
The thing that must be given up in order to get something else:
(a)
Which of the following are examples of opportunity cost?
Carla chooses to play a video game instead of watching TV
Robert fills his car with gas
Amy goes to a friend's birthday party instead of weeding the garden
Stewart spends $25 on a set of markers instead of a textbook
A production possibility schedule:
Shows the cost of decisions
Is an agreement with investors
Identifies factors relating to opportunity cost
Shows how much the stock has gone up in a company
To make 50 cupcakes, Shahra must give up 100 cookies. What is the opportunity cost of making 1 cupcake?
(a)
Any point inside the production possibility curve (such as point A) represents:
You have to click this link to look at the picture because dumb quizzes don't let you put in images anymore :P
https://www.wallstreetmojo.com/wp-content/uploads/2021/03/Production-Possibility-Frontier.jpg.webp
maximum allocation of resources
Efficient allocation of resources
Inefficient allocation of resources
Why are command economies less effective?
There is no competition
There's too much competition
There's no incentive to make profits
There's an emphasis on following tradition
It advocates for a complete lack of regulation, leading to exploitation of consumers
Virtually all economies in the world today are:
Command
Traditional
Mixed market
Pure competition
Scottish economist who advocated economic freedom
Milton Friedman
John Maynard Keynes
Karl Marx
Adam Smith
What are some limits to competition in a free-enterprise system?
Competition requires knowledgable consumers
Competion may drive up prices
People have freedom of choice
Fair competition isn't always possible
Lower prices for consumers
Law of supply
an increase in sales prices results in an increase in quantity supplied
an increase in sales prices results in a decrease in quantity supplied
An increase in sales price will lead to a decrease in demand
Higher price=lower quantity demanded
Lower price=higher quantity demanded
What does this illustrate?
(a)
The point where supply and demand are even and prices are set
Coordination
Equilibrium
Price floor
Disequilibrium
What happens when supply is higher than demand?
Prices rise above equilibrium
Excess demand takes place
Prices will fall until equilibrium is reached
Prices fall below equilibrium price
If the quantity of a good demanded drastically changes when the price changes, the good is relatively ________
elastic
inelastic
If the quantity of a good demanded does not change much when the price changes, the good is relatively ________
elastic
inelastic
Inelastic supply occurs when:
The ability to produce more of a good is limited
The good has a low production cost
The good is created with resources that are readily available
TRUE or FALSE: Incentives always occur in the form of a reward.
TRUE
FALSE
What are some examples of incentives?
A government heavily taxes goods from a certain country to discourage trade with them
A company sends 10% off coupons to encourage new shoppers to come to the store
A company makes more toys for the holiday season
Someone who makes handmade blankets marks up the price to decrease demand so they aren't overwhelemed with orders
Change in benefit in response to a specific action
(a)
Cost associated with producing one additional item
Marginal cost
Price ceiling
Marginal benefit
Price floor
Calculate cost per unit, then find difference between one unit and the next.
(a)
Tiara can make 5 floral arrangements in an hour, while Nory can make 3.
Who has the absolute advantage?
Tiara
Nory
A natural monopoly occurs when:
There are a small handful of competitiors
One producer can meet the needs of the whole market
cost of production is too high for other producers
the owner has a patent
A technological monopoly occurs when a patent is issued
TRUE
FALSE
When only a few producers dominate the marketplace:
Monopoly
Oligopoly
Monopolistic competition
Socialistic competiton
Examples of oligopolies in the United States
the car industry
the pear farming industry
the soft drink industry
the hair salon industry
Which of the following is true about monopolistic competition?
There are no other competitors, one company controls the price
Producers compete with other sellers by selling differentiated goods
There are few barriers to entering an industry
Consumers have more choices than in regular monopolies and oligopolies
Pure competition occurs when:
Producers sell identical goods
Producers differentiate themselves through features and branding
The consumers are brand loyal
Companies compete until all but one goes out of business, and that's the coolest business ever
Microeconomics focuses on:
Individual, household, and firm consumer decisions
The decisions of only corporations
the performance of the economy as a whole
the manufacture of coins
Total amount of supply
(a)
Equilibrium is met when:
All the inefficient producers are gone from an economy
The price floor and ceiling have been eradicated
It is impossible to meet equilibrium becuase it's impossible to fulfill everyone's desires
a society uses its resources efficiently
The circular flow model illustrates:
Interactions between different sectors of the economy and households and firms
How the government commands the economy in the most efficient way
How wealth is calculated among top earners
Examples of injector factors (factors that bring money into an economic system):
Taxation
Investment spending
Consumer spending
Net exports
Phases of the business cycle in order
Peak, Expansion, Trough, Contraction
Contraction, Expansion, Trough, Peak
Trough, Contraction, Peak, Expansion
Expansion, Peak, Contraction, Trough
