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2/29-Econ Vocab Review 1

Total questions: 40

Worksheet time: 30mins

Name
Class
Date
1.
How will scarcity of a capital good impact price?
a)
Price would go up
b)
Price would go down
c)
Price would stay the same
d)
You wouldn't sell any
2.
How much people want something
a)
supply
b)
demand
3.
The making, buying and selling of goods and services
a)
economics
b)
inflation
c)
market
d)
barter
4.

Scarcity is defined as a limited supply of resources and...

a)

limited wants for those resources

b)

unlimited resources

c)

limited resources

d)

unlimited wants for available resources

5.

When producers offer more of a good as its price increases and less as its price falls, this defines the

a)

law of demand

b)

law of supply

c)

change in demand

d)

change in supply

6.

The desire to have some good or service and the ability to pay for it

a)

supply

b)

equilibrium

c)

demand

d)

quantity demanded

7.

A designer raises the price of jeans by 50%. This will likely lead to a:

a)

Shortage

b)

Surplus

8.

Define Surplus

a)

a consumer's willingness to pay a set price for a specific good or service

b)

the amount of product that a producer is willing and able to sell in the marketplace

c)

more items available for sale than people want to purchase

d)

more people want an item than is available for purchase

9.
An effective price floor must be set above equilibrium, resulting in:
a)
a shortage
b)
a surplus
c)
limited choices
d)
None of the above
10.
What is inflation?
a)

rise in all goods purchased

b)

decrease in prices

c)

when prices stagnate

d)

rise in general prices

11.

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

a)

inflation

b)

recession

12.

The growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information is the...

a)

Multiculturalism

b)

International Trade

c)

Globalization

d)

Ecommerce

13.

The price at which total supply equals total demand is known as

a)

the middle price.

b)

the consumer price.

c)

consumer demand.

d)

the equilibrium price.

14.

A study of economics in terms of individual areas of activity or single factors.

a)

Macroeconmics

b)

Economics

c)

Microeconomics

d)

Personal Finance

15.
In a "pure" communist society, who are the wealthiest and most powerful people?
a)

Intellectuals

b)

Business leaders

c)

Military leaders

d)

No One--every member of society is supposed to be equal

16.

Economic decisions are made by the government

a)

Capitalism

b)

Communism

17.

The government sets the price of goods and determines wages for workers

a)

Communism

b)

Capitalism

18.

The economy is based on the idea of competition (supply and demand) producing the best products

a)

Communism

b)

Capitalism

19.

What societal problem did Karl Marx attempt to address in his manifesto? Choose the best answer.

a)

The exploitation of the poor by the rich

b)

The low quality of good produced at large factories.

c)

Unfair laws that allow poor people to be sent to prison

d)

The fact that the average person had no rights

20.

An economic system in which a country's industry is controlled by private owners for profit.

a)

communism

b)

socialism

c)

fascism

d)

capitalism

21.

Match the following Communists with their countries

22.

author and book title on the subject of Capitalism

a)

James Watt-Wealth of Nations

b)

John Locke-Wealth of Nations

c)

Adam Smith-Wealth of Nations

d)

Adam Locke-Wealth of Nations

23.

market or supply & demand determines prices in Capitalism

a)

True

b)

False

24.

the part of Capitalism that naturally made for low prices and high quality

a)

Competition

b)

Government control

c)

Guilds

d)

Fixed wealth

25.

What is globalization?

a)

The worldwide coming together of nations and countries

b)

The process of immigrating to a new country

c)

Creating local market to support small business owners

d)

It is the increase in nationalism and isonlationism

26.

The development of a worldwide economy where resources flow fairly freely across borders.

a)

Globalization

b)

Economy

c)

GDP

d)

Economic Independence

27.
The act of assuming the risk of organizing productive resources to produce goods and services.
a)
business
b)
critical thinking
c)
entrepreneurship
d)
risk management
28.
The act of assuming the risk of organizing productive resources to produce goods and services.
a)
business
b)
critical thinking
c)
entrepreneurship
d)
risk management
29.
Which is NOT a common characteristic of an entrepreneur?
a)
risk-taker
b)
creative
c)
organized
d)
irresponsible
30.

_________ is a decrease in the rate of inflation.

a)

Hyperinflation

b)

Disinflation

c)

Deflation

d)

Stagflation

31.

__________ refers to a decrease in price level.

a)

Hyperinflation

b)

Disinflaation

c)

Deflation

d)

Stagflation

32.

__________ occurs in the economy when unemployment and inflation are both high.

a)

Hyperinflation

b)

Disinflation

c)

Deflation

d)

Stagflation

33.

What is a consumer?

a)

Someone who buys goods and services

b)

Someone who sells goods and services

c)

Someone who owns a business

d)

Someone who works at a bank

34.

What is a budget?

a)

An estimation of income and expenses

b)

A financial plan

c)

A way to help save money

d)

All are correct

35.

How does this image show consumerism?

a)

It shows someone who cannot stop spending money

b)

It shows someone who defines themselves by shopping

c)

It shows someone who hates shopping

d)

It shows how easy it is to shop and spend money

36.

Which of these best defines equilibrium in a market?

a)

a situation in which quantity supplied is greater than quantity demanded

b)

a situation in which quantity demanded is greater than quantity supplied

c)

a situation in which quantity supplied and quantity demanded are equal

d)

a situation where a minimum price is set

37.

A situation in which the quantity supplied is greater than the quantity demanded is

a)

a shortage

b)

a surplus

c)

a price floor

d)

a price ceiling

38.

Market forces are best described as

a)

supply and demand determining prices

b)

the government set a minimum price for corn so farmers can make more money

c)

the government setting a maximum price on gas so people can save money

d)

a group of buyers and sellers for a particular good or service

39.

For the money laundering process to be a success,transactions such as currency exchange,wire transfers,and money orders need to be complimented with any paper trail

a)

TRUE

b)

FALSE

40.

Which of the following may be an indicator of money laundering?

a)

Paying by credit card

b)

Expensive policies being taken out and then cancelled

c)

Insurance being taken out on property

d)

Money being withdrawn from different cash machines