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as economics april 26

Total questions: 166

Worksheet time: 55mins

Name
Class
Date
1.

The type of government that has total control over the people and the police use power by force is called what?

a)

Anarchy

b)

Monarchy

c)

Limited

d)

Authoritarian

2.
In this type of economy, the people decide the supply, demand, and price.  
a)
Market 
b)
Traditional
c)
Command 
d)
Mixed
3.

Which type of economy has central ownership, the government, and lack of individual choice?

a)

Market

b)

Mixed

c)

Command

d)

Traditional

4.
Which type of economy is usually paired with a Communist government?
a)
Mixed
b)
Market
c)
Command
d)
Traditional
5.

Who invented communism?

a)

Plato

b)

Karl Marx

c)

Paul Samuelson

d)

Adam Smith

6.

Capitalism is in what type of economy?

a)

Traditional

b)

Command

c)

Market

d)

Authortarian

7.
Which two groups of people are represented in the circular flow model?
a)
Buyers and Sellers
b)
Producers and Consumers
c)
Government and Private Individuals
d)
Households and Businesses
8.

This means that the government should not interfere in the marketplace.

a)

Laissez Faire

b)

Capitalism

c)

Communism

d)

Socialism

9.

When customers and business owners exchange products and money, because it will help them both in some way.

a)

voluntary exchange

b)

volunteering to help someone for free

c)

opportunity cost

d)

reading quizzes

10.

The amount of money a business makes after its expenses are paid

a)

profit

b)

supply

c)

demand

d)

scarcity

11.

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

a)

subsistence

b)

specialization

c)

scarcity

d)

bartering

12.

Competition and profit motive are important characteristics of a:

a)

command economy

b)

traditional economy

c)

market economy

d)

socialist economy

13.

A economist who introduced the steady increase of the supply of money within growing economies.

a)

David Ricardo

b)

John Maynard Keynes

c)

Milton Friedman

d)

Beatrice Webb

14.

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

a)

Globalization

b)

Economy

c)

GDP

d)

Economic Independence

15.

Privatization refers to ....

a)

Transfer of assets from people to government

b)

Transfer of assets from public to private organizations

c)

Transfer of assets from corporate to public

d)

Transfer of assets from corporate to government

16.

Buyers choose what items are produced based on their spending habits

a)

Consumer Sovereignty

b)

Factors of Production

c)

Efficiency

d)

Cost / Benefit Analysis

17.
The driving force behind people going into business is
a)
profit margin
b)
profit motive
c)
opportunity cost
d)
taxes
18.
The concept that people have the right and privilege to control their possessions as they wish.
a)
legal equality
b)
open opportunity
c)
private property
d)
profit incentive
19.

The definition of AS is which of the following?

a)

Total supply of goods and services produced within an economy at a given price in a given period

b)

Total of consumer spending, investment, government spending, and net exports

c)

Total demand for goods and services produced within an economy at a given price in a given period

d)

Total supply of goods and services produced for export within an economy

20.

Why does the AS curve slope upwards?

a)

Due to the wealth effect on consumption

b)

As the price level falls the interest rate also tends to fall

c)

Lower prices leads to an increase in demand for exports

d)

Firms do not have flexibility to vary inputs in short run, so will only increase production by varying intensity of utilisation of inputs in response to higher prices

21.

A shift in the AD curve will have what impact on AS?

a)

Shift left

b)

Contraction / expansion

c)

Shift right

22.

Which of the following changes will cause the AS curve to shift?

a)

Costs of production

b)

Labour productivity

c)

Price levels

d)

Taxes such as VAT

e)

Shifts in the AD curve

23.

An increase in wages will cause what impact to the AS curve?

a)

Shift right

b)

Expansion

c)

Contraction

d)

Shift left

24.

The long run aggregate supply curve is influenced by which of the following factors? Choose three.

a)

Size of the workforce

b)

Level of education and training

c)

Prices

d)

Consumer expenditure

e)

Labour productivity

25.

This graph represents which view of LRAS?

a)

Keynesian

b)

Classical

26.

When the economy has plenty of spare capacity and LRAS is elastic, an increase in AD will lead to what impact on prices?

a)

Significant inflation

b)

Hyperinflation

c)

Modest increase in prices

d)

Reduction in prices

27.

When the economy is close to the full employment level of national income and LRAS is inelastic, an increase in AD will lead to what impact on prices?

a)

Significant inflation

b)

Reduction in demand

c)

Modest increase in prices

d)

Reduction in prices

28.

An increase in the quantity and / or quality of factors of production will have what impact on the LRAS curve (and / or PPF)?

a)

Shift left

b)

No impact

c)

Shift right

29.

What will be most likely to decrease a country’s national output in the short run but to increase its potential for long-run growth?

a)

a decrease in the level of import tariffs

b)

a decrease in the rate of immigration

c)

an increase in female participation in the labour force

d)

an increase in the money supply

30.

Which combination of factors is most likely to result in more rapid economic growth?

a)

increases in employment and in the balance of payments deficit

b)

increases in the level of investment and in the size of the working population

c)

more equal distribution of wealth and a higher level of unemployment benefits

d)

more rapid inflation and an increase in the national debt

31.

The table shows the figures for consumption, capital formation and depreciation in four economies, all measured in US $.

Assuming that the state of technology remains unchanged, which economy is most likely to experience economic growth?

a)

100; 20; 30

b)

500; 200; 200

c)

1000; 1400; 1200

d)

20,000; 5,000; 6,000

32.

What would be most likely to stimulate long-run growth in an economy?

a)

employment protection legislation

b)

government policy toc aggregate demand

c)

technical innovations by firms

d)

the development of trade unions

33.

It is often argued that the present rate of economic growth will soon lead to the exhaustion of reserves of material resources, such as minerals and oil. What does this argument fail to take into account?

a)

the drawbacks of present GDP levels as an indicator of the ‘happiness’ of the population

b)

the effect of increasing resource prices on the discovery and exploitation of new reserves

c)

the right of future generations to enjoy present standards of living

d)

the role of education in economic development

34.

country has a high ratio of investment to GDP and rapid economic growth. If the net capital inflow from abroad is zero, what will be a necessary cost of such growth?

a)

an increase in taxation

b)

increased consumption of luxury goods by richer residents

c)

increased imports of goods from abroad

d)

the sacrifice of present consumption by residents of the country

35.

The diagram shows a country’s production possibility curve and a number of alternative production points. Which change in the country’s output would be most likely to lead to a fall in potential growth?

a)

U to V

b)

U to X

c)

Y to X

d)

Y to Z

36.

Why may an economy experience an increase in potential economic growth despite net investment remaining unchanged?

a)

Capital consumption exceeds net investment.

b)

Net investment exceeds gross investment.

c)

The new capital equipment embodies more advanced technology

d)

The new capital equipment is longer lasting than the capital equipment it replaces.

37.

The diagram shows an economy’s production possibility curve. What causes a movement from point X to point Y?

a)

a positive output gap

b)

a recession

c)

actual economic growth

d)

potential economic growth

38.

Using income for purchases, expenses, and debt

a)

spending

b)

savings

c)

goods

d)

services

39.

things purchased by consumers

a)

goods

b)

consumer

c)

producer

d)

supply

40.

A person who provides a good or service

a)

producer

b)

need

c)

want

d)

consumer

41.

A person who purchases a good or service

a)

consumer

b)

taxes

c)

supply

d)

good

42.

Basic things humans need to survive

a)

need

b)

want

c)

import

d)

demand

43.

how much of a good or service consumers want

a)

demand

b)

spending

c)

producer

d)

scarcity

44.

The amount available

a)

supply

b)

demand

c)

import

d)

natural resource

45.

money paid to the government through income, sales, and purchase of property

a)

taxes

b)

goods

c)

scarcity

d)

human resource

46.

services provided by people

a)

human resource

b)

import

c)

scarcity

d)

consumer

47.

goods made to use in the production of other goods

a)

capital resouces

b)

demand

c)

taxes

d)

export

48.

A good made in the United States and sent to other countries

a)

export

b)

consumer

c)

savings

d)

taxes

49.

not having enough

a)

scarcity

b)

supply

c)

human resouce

d)

taxes

50.
What term refers to a good that comes into a country?
a)
Trade
b)
Migration
c)
Export
d)
Import
51.
What term refers to a good that leaves a country?
a)
Export
b)
Import
c)
Trade
d)
Distribution
52.
When something given up for something else is called?
a)
Choice
b)
Capitalism
c)
Inflation
d)
Opportunity Cost
53.
What economy is where the government has total control of the economy. Businesses are not privately owned.
a)
Command
b)
Traditional
c)
Mixed
d)
Market
54.
When a consumer can no longer pay off credit debt, they may be forced to file personal ______________ or legal relief for paying certain debts.
a)
repossession
b)
garnishment
c)
bankruptcy
d)
delinquency
55.
What is the definition of economics?
a)
The study of human behavior and attitudes
b)
The study of past events and the impact they have had on people
c)
The study of political and social interactions
d)
The study of the production and distribution of goods and services
56.
One of the important parts of economics is interdependence. Which of the following is an example of interdependence?
a)
People make their own clothing.
b)
People often move to places that aren't as crowded.
c)
People need goods and services provided by other people.
d)
People grow their own food.
57.
In economic terms, which action shows a person acting as an investor?
a)
A person sells a car to a neighbor.
b)
A person puts money in a savings account.
c)
A person drives students to school.
d)
A person buys a new pair of shoes.
58.

The core problem in economics study is

a)

Money

b)

Scarcity

c)

Production

d)

Allocation

59.

Which of the following statement is about microeconomics?

a)

The growth increased by 5.0 percent last year

b)

Inflation is about to increased 3.6 percent this year

c)

The factors of production is limited resources

d)

The general price level increased by 4 percent last year

60.

“In order to save cost, the “Food Industry” should use more labor than machines.”This statement refers to

a)

What to produce?

b)

How to produce?

c)

How many to produce?

d)

None of the above

61.

Capitalism is an economic system where individuals take all the

main economic decisions.

a)

True

b)

False

62.

Below are the concept in economic problems EXCEPT:

a)

Choices

b)

Externalities

c)

Opportunity Cost

d)

Scarcity

63.

Which one drama/movie below related with Central Planned Economy?

a)
b)
c)
d)
64.

Which country below has applied Capitalism Economy?

a)

Nigeria

b)

Roman

c)

United State

d)

Hong Kong

65.

The basic economic questions are _______ EXCEPT:

a)

What to produce

b)

For whom should be produce

c)

Why to produce

d)

How much to produce

66.

What to produce in Mixed Economy refers to:

a)

Public goods

b)

Private goods

c)

Intermediate goods

d)

Public and private goods

67.

Disadvantage of Central Planned Economy

a)

Social justice

b)

Limited choice of product and services

c)

Public goods

d)

Profit

68.

What motivates people to establish new businesses or expand existing ones?

a)

private property

b)

freedom of choice

c)

government regulations

d)

profit incentive

69.

When the benefits of an economic action exceed the costs ______________.

a)

economic efficiency increases

b)

production of goods and services decreases

c)

economic efficiency decreases

d)

economic freedom decreases

70.

The goal of economic stability is to reduce extreme ups and downs in the __________________.

a)

minimum wage

b)

factors of production

c)

standard of living

d)

nation's economy

71.

Who owns the factors of production and makes economic decisions in a market economy?

a)

individuals

b)

economists

c)

government

d)

communities

72.

Which of the following describes a free enterprise system?

a)

individuals are free to own and control the factors of production

b)

government owns and controls the factors of production

c)

businesses cannot make a profit

d)

there are no legal restrictions on freedom of enterprise

73.

The goal of economic freedom is to ______________________.

a)

allow the government to control the economy

b)

allow each member of society to make choices

c)

limit competition

d)

prevent businesses from failing

74.

All economic systems ____________________________.

a)

produce the same goods

b)

have the same resources

c)

must answer the same three basic questions

d)

distribute products through majority rule

75.

One advantage of a controlled (command) economy is ________________.

a)

the incentive to work hard

b)

speed of rerouting resources

c)

consumer choices

d)

the opportunities for wealth

76.

In a free enterprise system, who makes the decisions about what should be produced?

a)

sellers

b)

consumers

c)

entrepreneurs

d)

government

77.

A law dealing with unemployment compensation helps provide ____________.

a)

economic growth

b)

economic security

c)

economic stability

d)

economic equity

78.

Almost all economic systems today are ____________________.

a)

traditional economies

b)

command economies

c)

mixed economies

d)

market economies

79.

Competition forces businesses to ___________________.

a)

keep prices low

b)

lower the quality of their products

c)

raise prices

d)

raise the costs of production

80.

Economic equity deals with the issue of ___________________.

a)

profit

b)

fairness

c)

choices

d)

specialization

81.

Which of the following groups of people have a traditional economy?

a)

Australian Aboriginies

b)

North Koreans

c)

Chinese factory workers

d)

Italian Americans

82.

The system in which the government controls the factors of production and makes all the decisions about their use.

a)

command economy

b)

traditional economy

c)

market

d)

mixed economy

83.

The system in which economic decisions are based on customs that have been handed down from generation to generation.

a)

command economy

b)

traditional economy

c)

mixed economy

d)

market

84.

System combining characteristics of more than one type of economy.

a)

traditional economy

b)

mixed economy

c)

market

d)

command economy

85.

The way in which a nation uses its resources to satisfy its people's needs and wants.

a)

market

b)

mixed economy

c)

economic system

d)

command economy

86.

Freely chosen activity between buyers and sellers of goods and services.

a)

Market

b)

Command

c)

Mixed

d)

Traditional

87.

Money left over after all the costs of production have been paid.

a)

capitalism

b)

laissez-faire

c)

profit

d)

private property

88.

Economic system in which private individuals own the factors of production

a)

competition

b)

private property

c)

capitalism

d)

laissez-faire

89.

Economic system in which the government lets people do as they choose.

a)

traditional

b)

command

c)

laissez-faire

d)

competition

90.

Material well-being of an individual, group, or nation measured by how well necessities and luxuries are satisfied.

a)

economic efficiency

b)

economic equity

c)

standard of living

d)

economic growth

91.

Expansion of the economy to produce more goods, jobs, and wealth.

a)

economic efficiency

b)

economic equity

c)

economic growth

d)

economic responsibility

92.

Wise use of available resources so that costs do not exceed the benefits.

a)

economic efficiency

b)

economic equity

c)

economic growth

d)

economic responsibility

93.

Obligation of individuals in a free enterprise system to function as productive members of society.

a)

economic efficiency

b)

economic equity

c)

economic growth

d)

economic responsibility

94.

The attempt to balance an economic policy so that everyone benefits fairly.

a)

economic efficiency

b)

economic equity

c)

economic growth

d)

economic responsibility

95.

Rivalry among producers or sellers of similar goods and services to win more business.

a)

capitalism

b)

laissez-faire

c)

profit

d)

competition

96.

Whatever is owned by individuals rather than by government.

a)

capitalism

b)

laissez-faire

c)

private property

d)

profit

97.
All final goods and services that make up GDP can be expressed in the form:
a)
GDP = C + I - G + (X + M).
b)
GDP = C + I + G + (X + M).
c)
GDP = C + I + G + (X - M).
d)
GDP = C + I + (X - M).
98.
The definition of Scarcity is...
a)
An unlimited amount of resources to meet limited wants and needs
b)
A limited amount of resources to meet unlimited wants and needs.
c)
When people use time and energy to create events
d)
a city where individuals commit themselves to unlimited wants and needs
99.
Which of these is NOT an example of a need?
a)
Water
b)
Food
c)
watch
d)
Shelter
100.
What is a need?
a)
Nothing
b)
Something you have to have to live
c)
Something you would like to have
d)
Ice cream
101.
Economics is the study of how people seek to satisfy their needs and wants by making choices.
a)
True
b)
False
102.
Which of the following in an example of LAND.
a)
Coal
b)
Office Building
103.
House: Goods or Service?
a)
Goods
b)
Service
104.
According to an economist, which of the following would be considered "scarce"? 
a)
A teacher 
b)
A worker at McDonalds 
c)
An Astronaut 
d)
A youth baseball coach 
105.
What is the fundamental problem of economics? 
a)
How to keep consumers out of debt?
b)
How to fulfill our unlimited wants and needs with limited resources?
c)
How to figure out the way to make the most money?
d)
How do we ensure all people get a college education?
106.

things purchased by consumers

a)

goods

b)

consumer

c)

producer

d)

supply

107.

A person who provides a good or service

a)

producer

b)

need

c)

want

d)

consumer

108.

A person who purchases a good or service

a)

consumer

b)

taxes

c)

supply

d)

good

109.

Basic things humans need to survive

a)

need

b)

want

c)

import

d)

demand

110.

goods naturally found on the earth

a)

natural resources

b)

supply

c)

demand

d)

services

111.

not having enough

a)

scarcity

b)

supply

c)

human resouce

d)

taxes

112.
Which of the following is not a good?
a)
Clothes
b)
Food
c)
Dog Walker
d)
Toys
113.
A _____________ is a person who starts a business.
a)
Teacher
b)
Entrepreneur
c)
Actor
d)
Student
114.
A shortage of a resource is considered...
a)
Scarcity
b)
Surplus
c)
Profits
d)
Income
115.
The resources required to make a product (good or service)
a)
economics
b)
consumption
c)
four factors of production
d)
scarcity
116.
Something we pay for that we can touch
a)
goods
b)
services
117.
The idea that resources are limited; we don't have an unlimited supply of what we want
a)
scarcity
b)
supply
c)
demand
d)
inflation
118.

Economic growth is an increase in a nation's output of goods and services over time.

a)

True

b)

False

119.

Economic growth can usually be achieved without investing in new resources.

a)

True

b)

False

120.

Economic growth causes the Production Possibilities frontier to contract.

a)

True

b)

False

121.

People's skills, abilities, health, knowledge, and motivation all add up to human capital.

a)

True

b)

False

122.

Division of labor is division of work into a number of separate tasks to be performed by different workers.

a)

True

b)

False

123.

________ ________ Occurs when a nation's total output of goods and services increases over time.

(a)  

124.

(a)   is a measure of the amount of goods and services produced with a given amount of resources in a specific period of time.

125.

____________ ___________ means we rely on others and others and others rely on us , to provide most of the goods and services we consume.

(a)  

126.

A (a)   is a meeting place or mechanism through which buyers and sellers of an economic product come together. It may be local, regional, national, or global.

127.

________ _______ are markets in which productive resources are bought and sold.

(a)  

128.

An _________ _________ is a simplified version of a complex concept or behavior expressed in the form of a graph, figure equation, or diagram.

(a)  

129.

A __________ ________ analysis is a way of comparing the benefits of an action to the expected costs.

(a)  

130.

__________ ___ ________ is quality of life based on ownership of necessities and luxuries that make life easier.

(a)  

131.

In the mythical country Beta, an entrepreneur has introduced new technology that makes manufacturing twice as efficient as before. How is this likely to effect the production possibilities frontier?

a)

It would not change the frontier.

b)

It would make the frontier smaller

c)

It would expand the frontier

d)

It would change the shape pf the frontier

132.

Which of the following would result in a change in the production possibilities frontier in the mythical country Beta?

a)

An influx of immigrants form other countries

b)

the discovery of an abundant national resource

c)

a long drought

d)

all of these

133.
Lotteries, markets, barter, rationing, and redistribution of income are all methods commonly used to 
 
a)
A allocate scarce resources.
b)
 B collect taxes.
c)
C improve productivity. 
d)
 D invest in education and technology.
134.
Opportunity costs is MOST RELATED which concept? D  absolute advantage
a)
 A price floors
b)
B scarcity 
c)
C elasticity
d)
D absolute advantage
135.
  Competition and free enterprise are most common in which type of economic system? 
a)
A traditional
b)
 B market
c)
C communist
d)
D planned
136.
  Competition and free enterprise are most common in which type of economic system? 
a)
A traditional
b)
 B market
c)
C communist
d)
D planned
137.
  Which type of economic system is MOST likely to experience high amounts of government regulation and low amounts or private ownership? D  international
a)
 A. ) market
b)
B.)   command
c)
 C.) traditional 
d)
D.)   international
138.
A person who uses and buys goods and services 
a)
money 
b)
producer 
c)
consumer 
d)
economics 
139.
Importing more than exporting is
a)
trade surplus
b)
trade deficit
c)
balance of trade
d)
balance of payment
140.
If the US dollar appreciates relative to the Canadian dollar, what is a likely outcome?
a)
trade surplus in US
b)
trade deficit in Canada
c)
trade deficit in both
d)
trade surplus in Canada
141.
An increase in the value of currency is called
a)
appreciation
b)
depreciation
c)
trade surplus
d)
exchange rate
142.
Prices at which currencies are traded is called...
a)
Exchange Currency
b)
Exchange Rate
c)
Foreign Exchange Market
d)
Local Currency Demand
143.
The value of all the final goods and services produced within a nation in a given year.
a)
Gross Domestic Product
b)
per capita GDP
c)
Gross National Product
144.
A product that one country SELLS to another.
a)
import
b)
export
145.
The factories, machines, and technology that people use to make products to sell.
a)
capital goods
b)
human capital
c)
entrepreneurship
146.
An economic system in which the means of production and distribution are privately or corporately owned and developed.
a)
command economy
b)
capitalism
c)
traditional economy
147.
The amount of a good or service that is wanted is called:
a)
supply
b)
demand
c)
equilibrium
d)
inflation
148.
The amount of a good or service provided is called:
a)
supply
b)
demand
c)
equilibrium
d)
inflation
149.

The total value of goods and services produced within the a country during one year.

a)

Gross Domestic Product (GDP)

b)

Gross National Income (GNI)

c)

Gross Food Cafeteria (GFC)

d)

Human Consumption Chart (HCC)

150.

There are 4 _______________. They are land, labor, capital and entrepreneurship.

a)

Factors of Production

b)

Market Economy

c)

Profit

d)

Economics

151.

Tools used by people at work like assembly lines, or a hammer, or a ladder are called _______________.

a)

Labor

b)

Capital

c)

Revenue

152.

The study of how people seek ways to meet their wants and needs by making choices is called?

a)

Economics

b)

Philosophy

c)

Capitalism

153.

The four factors of production.

a)

Machines, Money, Oil, Plastic

b)

money, big cars, money, diamond rings

c)

Natural Resources, Labor, Capital, Entrepreneurship

154.

Name for the risk-taking businessmen who start businesses and are one of the factors of production.

a)

Land

b)

Labor

c)

Capital

d)

Entrepreneurship

155.

This measurement is used to determine how well a country's economy is doing.

a)

Stock Market Prices

b)

Gross National Assessment

c)

Gross Domestic Product

156.

Phrase that means how good a person's quality of life is.

a)

Opportunity standard

b)

Standard of living

c)

rent control

157.
All of the following are possible costs of your decision to go away to college except
a)
You will spend lots of time studying
b)
There may be a lot of social distractions
c)
You will become more educated
d)
You will be paying a lot of money
158.
What is scarce in the following scenario: You have to go to work but if you work a lot of hours you are going to be very tired
a)
Work
b)
Money
c)
Sleep
d)
Time
159.
What is the best example of scarcity
a)
The restuarant is not crowded tonight 
b)
The school parking lot only has 150 spaces but 200 students want to park there
c)
There are 500 houses in the subdivision and 250 of them are occupied
d)
A person decided to dye her hair blonde instead of red
160.
You buy a chair on craigslist for $10. You then discover that this is a special chair you could sell for $100, you decide to keep the chair anyway. What is the opportunity cost?
a)
$10
b)
$90
c)
$100
d)
$110
161.
What factor of production does this picture represent?
a)
Land
b)
Capital
c)
Labor
d)
Entrenprenour
162.
The basic problem of economics that develops because humans have unlimited wants but limited resources.
a)
Absolute Advantage
b)
Economics
c)
Scarcity
d)
Comparative Advantage
163.
The factor of production that includes the physical land and resources that come directly from the earth.
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneurship 
164.

The limited availability of resources is known as...

a)

Scarcity

b)

Voluntary Exchange

c)

Profit

d)

Opportunity Cost

165.

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

a)

Comparative Advantage

b)

Equilibrium Point

c)

Income Effect

d)

Opportunity Cost

166.

Which of the following is true?

a)

Needs, wants, and resources are all unlimited

b)

Needs and wants are unlimited but resources are limited

c)

Needs and wants are limited but resources are unlimited

d)

Needs, wants, and resources are all limited

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