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WorksheetsEconomics Study Guide
Total questions: 90
Worksheet time: 1hrs 10mins
In a supermarket, what primarily determines what products are stocked on the shelves?
Consumer demand and supply
Government directives
Custom and tradition
Central planning
In a hypothetical country, the government is in control of resources and production, and everything is centrally planned. What type of economic system does this country follow?
Market economy
Traditional economy
Command economy
Mixed economy
For the law of demand, as price rises, what happens to quantity demanded?
it goes up
it goes down
it stays the same
it is not effected
Consider a scenario where you are selling lemonade. According to the law of demand, what happens to the quantity demanded of your lemonade as you raise its price?
More people want to buy it
Fewer people want to buy it
The number of people wanting to buy it stays the same
The demand for lemonade is not affected
The amount of a good or service that is available to consumers
Supply
Demand
Saver
Spender
The point where supply and demand are balanced
shifters
equilibrium
surplus
shortage
A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?
The supply will probably go up
The supply will probably go down
Imagine a situation where a toy manufacturer produces more toys than the market demand at a certain price. What is this situation called?
shortage
fad
search costs
surplus
What is the fee that the lending institution charges the buyer to borrow the money?
Principal
Earnest Money
Closing Costs
Interest
If you had to give someone advice on buying a house, what would you recommend?
Buy a house you can afford.
Buy what you want, not what you need.
Always buy the largest, most expensive house you can afford.
When the bank pre-approves you for a mortgage amount, spend all of it on a house.
What is a disadvantage of renting a home?
The money you pay isn't going towards owning the house.
Renting is way more expensive than buying.
Renting makes you look irresponsible.
When renting, you are stuck in the home for a very long time.
The amount of money you “take home” on your paycheck after taxes is called your ______ pay.
gross
net
final
top
A measure of a person's credit risk is used by banks to decide whether they should give out loans. It typically ranges between 300-850.
Interest
Credit Score
Credit Card
Amortization Schedule
What did money used to be backed by?
land
Oil
Gold
Crops
__________ is a U.S. government institution that provides insurance on depositor's accounts
Congress
Department of the Interior
FDIC
Department of Homeland Security
What is the best description of the relationship between risk and return?
The higher the risk, the lower the return
The lower the risk the greater the potential for return
Buy high, sell low
The higher the risk, the greater the potential for return
What is a stock?
A stock is a type of investment that uses money from investors to purchase many different investment types.
A stock is an insured bank account with high risk.
A stock is a lending investment to the government or a company.
A stock is a share of ownership in a company.
The name for a part of a business that is bought and sold on the stock market is:
Part
Market
Stocker
Share
An overall rise in prices is called _____.
a yield
volatility
a dividend
inflation
Louis's dad pays a tax to the federal government each year based off the money he earns from his lawn mowing business. What type of tax does Louis's dad pay each year?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Curtis purchased a new pair of jeans for $18. When Curtis pays for his jeans his total is almost $20 because of taxes. Which type of tax does Curtis pay?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Your parents pay a tax each year of $3500 that is based off the value of your home. Which type of tax do your parents pay each year?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Which of these is the money you earn BEFORE taxes?
Gross Pay
Net Pay
Taxes are collected by
Businesses
Parents
Foreign countries
Government
When you put money into a bank account for safe keeping, you are making a ...
deposit
withdrawal
expenses
The act of taking money out of a bank account is known as a ...
deposit
expenses
withdrawal
Which of the following is an advantage of using a credit card?
Interest is charged for the use of a credit card.
Consumers can purchase things now, and pay for them later in the event of an emergency.
You could be a victim of identity theft.
Which of the following would most likely be considered a need?
A large house to live in
Public education
Traveling overseas each year
Eating out at restaurants every night
With which type of bank accounts, banks pay higher interest rates based on how much money a customer keeps in their account?
Savings
Debit
Checking
Money market
Of the following, which has the BIGGEST impact on your credit score?
New credit
Credit mix/types of credit
Credit history
Payment history
Jennifer works for the Pepsi company as a truck driver. What type of resource is Jennifer?
Capital Resource
Human Resource
Natural Resource
Entrepreneur
Which is a capital resource that a lawn-care company would need?
Lawn Mower
Lawns
Customers
Employees
Which of the following correctly describes an entrepreneur?
Christina folding laundry because it is one of her chores.
Jacob starting his own doggy daycare and hiring his friends.
Kimberley babysitting her brother while her parents go to the movies.
Brandi getting a job so she can buy Christmas presents.
Why are entrepreneurs considered "risk-takers"?
They are guaranteed a successful business.
Their business could fail and they could lose all the money they have invested into it.
They are charged more taxes.
They combine human resources, natural resources, and capital resources to start a new business.
Which of the following is true about supply and demand?
If demand is greater than supply, prices are lower.
If supply is greater than demand, prices are lower.
If supply is equal to demand, the prices are lower.
If supply is greater than demand, the prices are higher.
What is a tax?
A tax is a service the government provides to its citizens.
A tax is money people have leftover after purchasing goods or services.
A tax is money people pay to support the government.
A tax is a service that people provide by working for the government.
If a city builds a new park, how will it be paid for?
Donations the city collected
The mayor used her own money
The city used tax money paid by the citizens
The city got a loan from the federal government
Florida farms a lot of oranges. Oranges do not grow well in Massachusetts. Massachusetts grows cranberries but Florida does not. How do the states meet their needs?
The 2 states eat each other's fruits.
The 2 states trade fruit with each other.
The 2 states donate their fruit to each other.
The 2 states heavily tax the fruit so they can buy more.
Why is trade with other countries important for American consumers?
It gives people more choices in the goods they buy.
It improves the quality of goods made in America.
It forces the government to lower taxes.
It helps protect the environment from pollution.
Why do countries have currency?
So people can earn more money.
So people can buy goods and services
So people have a way to pay taxes.
So people can trade labor for other goods and services.
Ben needs to study after baseball practice for his math test tomorrow. However, the team said they were going to hang out and get ice cream afterwards. If Ben goes for ice cream, what is his opportunity cost?
Ben's growing friendships with his teammates.
Ben's score on his Math test.
Ben's ability to improve his baseball skills.
Ben's teammates will call him a nerd.
Individuals (households) own resources used in production, sell resources for _____, and use the ______ to purchase products.
Income
Taxes
Interest
opportunity cost
________ uses tax revenue from individuals and businesses to provide public goods and services.
Individuals
Government
Businesses
Private Financial Institutions
Why does the U.S. pass laws and create agencies?
To Protect consumer rights and property rights
To raise money
To weaken the national defense
To help promote monopolies
What type of economy does the U.S. have?
Free Market
Traditional
Command
Mixed
The want or willingness a consumer has to purchase a good or a service is called?
The amount of goods or services available for a producer to sell is called?
An individual who purchases (buy) goods.
Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?
The demand will probably go up
The demand will probably go down
What will happen to the price of baby cribs if there is a large increase in the number of babies born?
The price will increase
The price will decarese
What will happen to the price of soccer balls if more and more boys and girls are learning to play soccer?
The price will increase
The price will decrease
These are the things we desire to have.
Wants
Goals
Opportunity Costs
Tom was shopping for a car. He has looked at a Ford, Honda, Toyota, and Dodge. After a lot of debate, he narrowed it down to either the Ford or the Honda. He selected the Ford, because he liked the interior a little better. What was his opportunity cost?
Ford
Honda
Toyota
Dodge
Limited Resources + Unlimited Wants =
Scarcity
Productivity
Opportunity Cost
Efficiency
Emily is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Emily decides to get a job. Which of the following is the opportunity cost of her decision?
money
job
time
college
Capital refers to...
The "gifts of nature" or natural resources not created by human effort.
people with all their efforts and abilities
the tools, equipment, and factories used in production of goods and services
individuals who start a new business or bring a product to market.
Labor refers to...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
the tools, equipment, and factories used in production of goods and services.
The "gifts of nature" or natural resources not created by human effort.
Entrepreneurs are...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
The "gifts of nature" or natural resources not created by human effort.
the tools, equipment, and factories used in production of goods and services
WHAT ARE THE 4 FACTORS OF PRODUCTION?
Land, Capital, Need & Want
Land, Labor, Capital, Entrepreneurs
Water, Air, Food & Shelter
Land, Capital, Good & Service
Economics can be described as the study of
Money
Choices
graphing
price ceilings and price floors
Why do entrepreneurs take risks?
to set their own work hours
to earn a profit for themselves
to provide G/S to their customers
to provide salaries and benefits to their employees
Macroeconomics approaches the study of economics from the viewpoints of
individual firms
individual consumers
government units
the entire economy
Neha has been saving up her money for a new bike. Her old one still rides just fine. What is her opportunity cost if she buys that new bike?
She will have a new bike.
She will have less money in savings.
Now she has 2 bikes. Yay!
She will have more money than she did before buying the bike.
Why is it important to save money?
To spend more on luxury items
To have funds available for future needs or emergencies
To lend money to friends
To pay more taxes
Why are wants unlimited?
Because people have unlimited money.
Because new products are always being created.
Because people's needs change over time.
Because people always desire more than they need.
