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econ exam

Total questions: 11

Worksheet time: 3hrs 45mins

Name
Class
Date
1.

In 1933, president FDR created a program called “Civilian Conversation Corps” (CCC). Which allowed young men (ages 18-25) enlisted in various work programs such as improving national parks as work. This further allow more people with money to spend after the government increase expenditure on wages for the people in the program.

Identify the government action in the example in the left.. What type of fiscal policy was best applied?

a)

Contractionary Fiscal Policy

b)

Discretionary Fiscal Policy

c)

Expansionary Fiscal Policy

d)

Automatic Fiscal Policy

2.

NAFTA (North American Free Trade Agrreement). Since this policy was enacted by Bill Clinton. This allowed companies more freedom within North America. Example: Jobs in Mexico making American products. Which of the following terms best fit this action?

a)

Protectionism

b)

Absolute Advantage

c)

Imports

d)

Net Exports

e)

Comparative Advantage

3.

The Ford Motarcycle company is loosing revenue this year due to a decrease in motorcycle sales. On the flip side the Japanese Toyota Motorcycle company is gaining revenue this year due to an increase in motorcycle sales. In order to help the Ford Motorcycle company, the US placed a limit amount of Japanese Toyota motorcycles available to be bought (up to 4,000). Which then result an increase due to higher demand lower supply of American buyers. Which led to a boom of Ford Motorcycles increasing. What form of action was this?

a)

Tariff

b)

Import Quotas

c)

Protectionism

d)

Depreciation

4.

In 1965, many farm workers went on strike known as the “Delano Grape Strike and Boycott” for increase wages. What scarcity of resource did this caused?

Choose what best fits.

a)

Natural Resources

b)

Physical Capital

c)

Human Capital

d)

Entrepreneurship

5.

True or False: Money is a resource.

a)

True

b)

False

6.

True or False: Money is a resource

a)

True

b)

False

7.

You buy oreos every day for a snack then suddenly you feel less want of the snack and stop buying. What type of demand is this?

a)

Substitution Effect

b)

Income Effect

c)

Law of Diminishing Marginal Utility

d)

Complementary Good

e)

None of these answers are correct.

8.

You go to the store and choose to buy a second pair of jeans despite it being less satisfactory of utility. When stores choose to do buy one get one half off/or free, what is it based on?

a)

The law of demand

b)

The law of supply

9.

Gatorade cost $2.75 per drink vs Powerade is $2.50 per drink. What kind of change in demand would this cause?

a)

Substitution Effect

b)

Income Effect

c)

Law of Diminishing Marginal Utility

d)

Complementary Good

e)

Something else in my head that I cannot say

10.

If the government conducts a type of protectionism policy that places tariffs to Canada, China, and Mexico. What in the following answers best applies to the impact of tariffs?

a)
Tariffs decrease prices on imports and benefit consumers.
b)
Tariffs raise prices on imports, protect domestic industries, and can lead to trade retaliation.
c)
Tariffs have no effect on domestic industries or trade relations.
d)
Tariffs only apply to exports and do not impact imports.
11.

Which of the following graphs applied to the situation following;
Demand moves left and quantity moves left

a)

b)

c)

d)