WorksheetsEconomics Semester Review Pt.1
Total questions: 40
Worksheet time: 40mins
What is the fundamental problem in economics?
Poverty
Scarcity
Resource Allocation
Production
What is economics primarily concerned with?
Function
Efficiency
Data
Use of resources
What are the factors of production (define)? Give examples for each of the factors of production.
Who owns property in a capitalist system?
Owned by individuals
Owned by the government
Owned by business owners
Owned by no one
What is social security?
Workforce
A healthcare system
The protection against economic hardships
Relief Program
What are the three basic questions all economic systems answer?
What products will we produce more? Where will the products be sold? How will the products be produced?
What products will be produced? How will the products be produced? For whom will the products be produced?
Who will produce the products? When will the products be produced? Where will the products be sold?
What will the products be? For whom will the products be produced? When will the products be produced?
What is the government's role in the market economy?
Government has the most control in the economy
Government has no interest in interference of the economy
Government has had several interference in the economy only recently
Government interference in the economy is minimal
What are the major characteristics of a pure market economy?
Unrestricted Competition
Public Sector
Surplus of Public Goods
Lack of foreign investment
What did Adam Smith mean by the "invisible hand"?
Economy/Economics
Consumers
The Market
Money
What is opportunity cost?
Turnover adjusted for the change of in inventories
The value of the next best alternative that has to be given up for the action that is chosen.
The value of the business that incurs to finance its operations
The value of the cost of goods sold plus operating expenses.
What is a production possibilities curve and what is its purpose?
The current resources and where they are distributed in the present
The combination of two goods and economy is capable of producing
One output of current resources
Countries can make decisions about the best use of their resources
What is the law of demand?
An economic theory that predicts how the goods and services affect supply
States there is an inverse relationship between the price of a good or service and the quantity buyers purchase
Higher prices prompt producers to produce more
The value of the next best alternative that has to be given up for the action that is chosen
What does a shift left in the demand curve indicate? What about a shift to the right
Left = decrease in demand
Right = increase in demand
Left = increase in demand
Right = decrease in demand
Left = increase in supply
Right = decrease in demand
Left = decrease in supply
Right = decrease in demand
What is a complementary good?
goods that consumers get for free
goods that consumers purchase separately
goods that consumers purchase together with another good
goods that government officials purchase individual for each department
What is a substitute?
When the price of a good is too low for consumers they will become skeptical
When the price of a good increases consumers will no longer buy
When the price of a good decreases consumers purchase more
When the price of a good is too high for consumers they will look for a cheaper alternative
What is elastic?
A measure of different economic variables over time
A measure of how responsive one economic variable is to to changes in price
A measure of how fast you're able to pull out money
A measure of how long an economic variable has been the same
What is the law of supply?
Higher prices prompt producers to produce more
States that there is an inverse relationship between the price of a good or service and the quantity buyers purchase
The value of the next best alternative that has to be given up for the action that is chosen
The protection against economic hardships
What is an excise tax?
Manufacture, production, and use
Production, use, and consumption of certain goods
Manufacture, use, and consumption of certain goods
Use and consumption of complementary goods
How will the use of technology to produce and distribute goods affect supply?
It will replace supply
It will stop supply temporarily
It will decrease the supply
It will increase the supply
What is a surplus?
A decrease in the quantity demanded for a good together with a decrease in the quantity supplied
A decrease in the quantity demanded for a good together with an increase in the quantity supplied
An increase in the quantity demanded for a good together with an increase in the quantity supplied
An increase in the quantity demanded for a good together with a decrease in the quantity supplied
What is a shortage?
Occurs at any price at which the quantity supplied is less than the quantity demanded
Occurs at any price at which the quantity supplied is more than the quantity demanded
Occurs at any price at which the quantity demanded is more than the quantity supplied
Occurs at some prices at which the quantity demanded is less than the quantity supplied
What determines prices on goods and services?
Demand
Supply
Demand and supply
Neither
What is a price ceiling?
Occurs at any price at which the quantity supplied is less than the quantity demanded
A government set minimum price that can be charged for goods and services
A government set maximum price that can be charged for goods and services
A decrease in the quantity demanded for a good together with an increase in quantity supplied
What is a price floor?
A government set maximum price that can be charged for a good or service
A government set minimum price that can be charged for a good or service
Higher prices prompt producers to produce more
Occurs at any price at which the quantity supplied is less than the quantity demanded
What are key characteristics of a market structure?
Number of firms, the similarity of the products sold, and the ease of entry into the market
Differentiation of products sold, similarity of products sold, ease of entry into the market
Ease of entry into the market, ease of demand and supply, number of firm
Number of firms, barriers to entry, number of competing firms
Define the term "barrier to entry"
Type of insurance that provides money to your family if you die
Tax on imports
Anything that protects a business from competing firms entering a market
Stock profits a company distributes
What are 3 examples of a purely competitive market?
Utilities, price takers, and stockbrokers
Small number of small firms, large number of big firms, stockbrokers
Large number of common stocks, large number of small firms, and a price taker
Large number of small firms, similar products, and a price taker
What are the characteristics of a monopoly?
Multiple sellers, barriers to entry, and complete control of supply
A single seller, barriers to entry, and complete control of a market price
Complete control of a market price, complete control of supply, complete control of stock
A single seller, complete control of market price, complete control of profit
What are natural monopolies?
Businesses that provide such things as utilities, public transportation, and cable tv
Businesses that provides such things as food, housing, and essentials
Stock Profits a company distributes
Corporation
What is the most numerous type of business organization?
Common stock
Corporation
Sole proprietorship
Incorporation
What is sole proprietorship?
A business owned but not managed by a single person
Shared ownership of a business
Complete ownership of any kind of asset
A business owned and managed by a single person
What is unlimited liability?
The owner and managers of the business share complete legal responsibility for all debts and damages arising from doing business
The owner of the business bears complete legal responsibility for all debts and damages arising from doing business
The owner and workers of the business share complete legal responsibility for all debts and damages arising from doing business
As the price goes down quantity demanded goes up
What is a dividend?
Stock profits a company distributes
Company profits a stockbroker distributes
The owners of common stock investments
a single seller
Who gets to vote at shareholder meetings?
Single sellers
Dividends
The owners of common stock investments
Corporations
Which type of business accounts for the most dollar value of business in the United States?
Healthcare
Banks
Companies
Corporation
What reflects the inverse relationship between quantity demanded and price?
As the quantity demanded goes up the price goes up
As the price goes down quantity demanded goes up
As the quantity demanded goes down the price goes up
As the price goes up quantity demanded goes down
What is a deductible?
The amount that you have to pay before insurance pays
The amount that you have to pay after the insurance pays
Type of payment insurance makes for you
Profit made after insurance pays
What is life insurance?
Type of insurance that covers the whole or risk of a person incurring medical expenses.
Type of insurance that can replace income
Type of insurance that provides money to your family if you die
Type of insurance that covers the cost to repair or replace your belongings if damaged
What is a mortgage loan?
Type of loan that borrows money against your paycheck
Type of loan used to simplify your finances by combining multiple bills for credit cards into a single debt
Type of loan meant to pay for tuition
Type of loan that people get to buy a home
List and define the functions of money
Medium of exchange, store of value, and unit of accounting
Store of value, store of profit, barriers to entry
Medium of exchange, store of profit, and store of value
Barriers to entry, medium to exchange, and unit of accounting
