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Worksheets

ept3 wrong answers

Total questions: 26

Worksheet time: 13mins

Name
Class
Date
1.

Economists warn that the nation is heading for a recession. Which of the following actions would John Maynard Keynes most likely support?

a)

Increase funds for civic projects to put people to work

b)

Decrease taxes across the board for individuals and businesses

c)

Redistribute unemployment and Social Security funds to bail out failing banks

d)

Reduce the money supply and keep interest rates high

2.

Keynes would most likely support a plan for

a)

government ownership of most production

b)

creating a worldwide free trade agreement

c)

eliminating income taxes on the wealthy

d)

income taxes based on ability to pay

3.

Supply and demand determines prices levels for goods and services in a

a)

market economy

b)

traditional economy

c)

demand economy

d)

command economy

4.

Why does a large industrial sector not always indicate that a nation is fully developed?

a)

Development depends on rate of industrialization

b)

The standard of living may not have risen with industrial growth

c)

Environmental standards may differ from industrial standards

d)

Focus on industry may slow technological advancement

5.

Marcel takes out student loans and works part time to put himself through college. In time, he earns an advanced medical degree and goes to work in an understaffed city hospital. Marcel's economic decisions benefit the goal of efficiency by

a)

making his own job-related decisions

b)

paying back loans to reduce the debt

c)

contributing to the nation's productivity

d)

taking advantage of equal opportunities

6.

Two countries produce milk and dairy products efficiently. Neither has an absolute advantage. However, Country A exports milk to Country B, and Country A imports cotton from Country B. Which of the following is inferred?

a)

The opportunity cost of producing milk is lower for Country A.

b)

The opportunity cost of producing cotton is higher for Country B.

c)

Country A has a natural resource advantage in cotton.

d)

Country B has a natural resource advantage in milk.

7.

The United States may have a tariff on cotton products from China in order to

a)

prevent Chinese manufacturers from losing profit because of low prices

b)

protect the business of the American cotton growers and manufacturers

c)

stop trade due to political disagreement on economic policy

d)

promote sales in the United States of cotton products from China

8.

The cost of fuel is on the rise. In what way will this affect global trade?

a)

Exchange rates will decrease

b)

Quotas will increase

c)

Shipping expenses will increase

d)

Tariffs will decrease

9.

How would a strong U.S. dollar impact the trade of grain produced in the United States?

a)

U.S. grain exports decrease

b)

U.S. grain exports increase

c)

U.S. grain imports decrease

d)

U.S. grain imports stagnate

10.

Which of these can be a result of inflation?

a)

Businesses grow cautious about spending

b)

The government has to cut spending

c)

The price of household items increases

d)

Workers benefit from a lower cost of living

11.

Which of these is a sign of inflation?

a)

A negative number for the Consumer Price Index shows prices are falling.

b)

A negative number for the Consumer Price Index shows prices are rising.

c)

A positive number for the Consumer Price Index shows prices are falling.

d)

A positive number for the Consumer Price Index shows prices are rising.

12.

Which of these would result from high inflation in the United States?

a)

U.S. goods would be less expensive than before.

b)

Americans would demand higher wages.

c)

Income levels in the workforce would fall.

d)

The Consumer Price Index would be a negative number.

13.

Which of the follow is true of the trade relationship between Country A and Country B?

a)

Country A has an absolute advantage in producing yarn and fabric

b)

Country B has an absolute advantage in producing yarn and fabric

c)

Country B has a comparative advantage to Country A in producing fabric

d)

Country A has a comparative advantage to Country B in producing fabric

14.

If the Consumer Price Index rises then

a)

unemployment is falling

b)

unemployment is rising

c)

deflation is occurring

d)

inflation is occurring

15.

"You can't make a great peanut butter sandwich without Smuckers'® jelly!" This advertisement targets your

a)

fears

b)

rituals

c)

emotions

d)

social values

16.

Based on this chart, what is the marginal cost, in dollars, to produce four jackets? (5 points)

a)

12

b)

13

c)

55

d)

68

17.

Based on this chart, what is the marginal cost, in dollars, to produce seven jackets?

a)

5

b)

15

c)

18

d)

33

18.

Based on this chart, what is the marginal cost, in dollars, to produce two jackets?

a)

5

b)

15

c)

18

d)

33

19.

Based on this chart, what is the marginal cost, in dollars, to produce three jackets?

a)

5

b)

15

c)

16

d)

33

20.

The owner of ProPhone has charted the company's marginal revenue and marginal cost for its latest line of smartphones, the Blazer. Use the chart to calculate the company's profit.

a)

FOUR

b)

SIX

c)

NINE

d)

TWELVE

21.

Use this image to answer the following question. The ice cream shop knows it can sell at least 12 gallons of chocolate ice cream per week. What would be the most efficient number of gallons of strawberry ice cream for the shop to produce?

a)

0

b)

4

c)

8

d)

12

22.

Which of the following is the least profitable investment for a game shop earning $2 profit from every game sold?

a)

Vehicle with $120 daily operating cost, delivering 80 games per day

b)

Inventory software with $10 daily operating cost, saving 30 games per day from theft

c)

Game cleaning system with $5 daily operating cost, increasing sales by 15 games per day

d)

Electronic billboard with $20 daily operating cost, increasing sales by 20 games per day​

23.

Mad Hatter Publishing specializes in genre fiction for young adults. A movie company decides to make an adaptation of one of its popular science-fiction novels. Currently, production at Mad Hatter is at point T. To which point or points is production likely to shift?

a)

Q or R

b)

Q or T

c)

T or V

d)

V or Q

24.

Stacy owns a hair salon and haircuts are $10. She charges hairdressers $20 per hour to rent a chair and serve clients. What is the minimum number of haircuts a hairdresser should give per hour to earn money at Stacy's salon?

a)

Two

b)

Three

c)

Four

d)

Five

25.

Jessica is a violinist who believes she can extend her method of learning music to early childhood education. She opens a preschool in her hometown, using her expertise to form an arts-based program. What factor of production is this?

a)

Capital

b)

Entrepreneurship

c)

Labor

d)

Land

26.

"Buy our cell phone with built-in calendar and reminder features! This way you will never forget an appointment while on the go." This advertisement targets your

a)

fears

b)

rituals

c)

emotions

d)

social values