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Economics Final Exam U1 & U2 Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Economics is:

a)

a. The study of choices and how people will use scarce resources which have alternative uses.

b)

b. The study of money and business.

c)

c.

d)

d. The most exciting thing to Ms. T!

2.

______________ arises because all resources are limited and can’t satisfy people’s unlimited wants!

a)

a. Benefits

b)

b. Scarcity

c)

c. Capital

d)

d. Utility

3.

Which of the following is NOT a factor of production?

a)

a. Land

b)

b. Labor

c)

c. Capital

d)

d. Credit

4.

Which of the following statements best describes the concept of "opportunity cost"?

a)

a. the money spent to produce goods and services

b)

b. the monetary value of goods and services

c)

c. the value of what must be given up to get something

d)

d. the cost of eliminating scarcity

5.

Which of the following statements best describes land as a factor of production?

a)

Considered to be the human resource

b)

The “gifts of nature” or natural resources not created by human effort

c)

Risk-taking individuals who have the ability to start a new business or bring a product to market.

d)
  1. Tools, equipment, factories used in production.  It is the result of production.

6.

Which of the following statements best describes labor as a factor of production?

a)

Considered to be the human resource

b)

The “gifts of nature” or natural resources not created by human effort

c)

Risk-taking individuals who have the ability to start a new business or bring a product to market.

d)
  1. Tools, equipment, factories used in production.  It is the result of production.

7.

Which of the following statements best describes capital as a factor of production?

a)

Considered to be the human resource

b)

The “gifts of nature” or natural resources not created by human effort

c)

Risk-taking individuals who have the ability to start a new business or bring a product to market.

d)
  1. Tools, equipment, factories used in production.  It is the result of production.

8.

Which of the following statements best describes entrepreneurs as a factor of production?

a)

Considered to be the human resource

b)

The “gifts of nature” or natural resources not created by human effort

c)

Risk-taking individuals who have the ability to start a new business or bring a product to market.

d)
  1. Tools, equipment, factories used in production.  It is the result of production.

9.

Productivity is:

a)

Used by the Federal Reserve to regulate the nation’s money supply.

b)

Created by each state to preserve each state’s own identity.

c)

Dictated to each country of the world by the World Bank.

d)

A measure of efficiency that shows the number of outputs per unit of input

10.

What is the Law of Increasing Productivity?

a)

As you produce less of any good, the opportunity cost will decrease

b)

Owning too many cats

c)

The Federal Reserve Bank is trying to decrease unemployment

d)

As you produce more of any good, the opportunity cost will increase

11.

Which of the following is NOT one of the four major economic systems?

a)

Command

b)
  1. Market

c)

Mixed

d)

Gerrymandering

12.

In a command economy, the means of production are owned by_____

a)

The eldest son

b)

The government

c)

An individual

d)

Ms. T because I am the wealthiest woman in America!

13.

What are the three basic economic questions?

a)

What?

b)

How?

c)

For Whom?

d)

All of the above

14.

The best example of a market economic system is:

a)

United States (USA)

b)

China

c)
  1. North Korea

d)

Guam

15.

The best example of a command economic system is:

a)

United States (USA)

b)

China

c)
  1. North Korea

d)

Guam

16.

What does FICO stand for?

a)

Free Interest in Colorado

b)

Fair Isaac Corporation

17.

What is credit?

a)

A prediction of your credit behavior

b)

To get cash, you must leave an item at the pawnbroker.

c)

You must be a member of the credit union in order to get a loan.

d)

The ability to borrow money on the promise you will pay it back

18.

What is a credit score?

a)

A prediction of your credit behavior

b)

To get cash, you must leave an item at the pawnbroker.

c)

You must be a member of the credit union in order to get a loan.

d)

The ability to borrow money on the promise you will pay it back

19.

Which of the following are the credit reporting agencies?

a)

Equifax

b)

Experian

c)

TransUnion

d)
  1. All of the above

20.

The main difference between credit cards and debit cards is:

a)

You must have enough $ in the account to make a purchase with a debit card.

b)
  1. You don’t need to have enough $ in the account to make a purchase with a debit card.