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WorksheetsEconomics Final Review
Total questions: 100
Worksheet time: 50mins
Which of the following is a factor that can shift the demand curve?
Change in consumer income
Change in production technology
Change in the number of suppliers
Change in government regulations
What is the result of a government subsidy on a product?
Decrease in supply
Increase in supply
Decrease in demand
Increase in demand
A market demand schedule shows how much of a good or service all consumers are willing and able to buy at each price in the market. True or False?
True
False
Fill in the blank: The letter 'E' in the acronym for shifts and changes in demand stands for ________.
A) Energy
B) Environment
C) Consumer Expectations
D) Employment
Which industry is mentioned as being influenced by changing consumer tastes?
Agriculture
Technology
Mining
Construction
Which of the following is true about normal goods?
A) Consumers demand more when income rises
B) Consumers demand less when income rises
C) Consumers demand more when income falls
D) Consumers demand less when income falls
Which determinant is directly related to the availability of alternative products?
Income
Consumer Expectations
Substitutes/Complements
Number of Consumers
Fill in the blank: A rise in consumer income generally leads to a(n) ______ in demand for normal goods.
Decrease
Increase
No change
Which of the following is NOT a determinant of demand?
A) Tastes & Preferences
B) Consumer Expectations
C) Production Costs
D) Income
Which determinant is most likely to change if a new competitor enters the market?
Tastes & Preferences
Consumer Expectations
Number of Consumers
Substitutes/Complements
What does the demand curve represent in economics?
The relationship between price and quantity demanded
The relationship between supply and demand
The relationship between income and expenditure
The relationship between cost and profit.
Which direction does the demand curve shift when there is a fall in demand?
A) Right
B) Left
C) Up
D) Down
What happens to the quantity demanded when the demand curve shifts to the right?
It increases
It decreases
It remains the same
It fluctuates.
The price of Bugle Chips (a complement of soda) increases. What happens to the demand for bubble soda?
Increases
Decreases
Stays the same
Becomes unpredictable
Fill in the blank: An object that is 'Elastic' is ________ to budge.
not willing
willing
hesitant
resistant
Food, clothing, and shelter are
Needs
Wants
Human resources
Capital resources
Economics is:
Physical objects that can be purchased
Work that one person performs for another for payment
When a good or service is unavailable temporarily or long-term
Condition that results from society not having enough resources to produce all the things people would like to have
The study of how people choose to use scarce resources to satisfy their wants/desires
If a point is on the PPC, what does it indicate?
Efficient use of resources
Inefficient use of resources
Unattainable production
Maximum production
What can cause the PPC to shift outward?
Decrease in resources
Technological advancements
Increase in demand
Natural disasters
Which statement is true about opportunity cost?
It only applies to financial decisions
It is irrelevant in resource allocation
It helps in determining the best alternative
It is not a factor in economic decision-making
The concept of scarcity implies that:
Resources are abundant
Choices must be made
Wants are limited
Opportunity costs are zero
What is a utility?
benefits offered to encourage people to act in certain ways
benefit or satisfaction gained from the use of a good or service
How does capital differ from land in the context of factors of production?
Capital is tangible; land is intangible
Capital can be man-made; land is natural
Capital appreciates over time; land depreciates
Capital is renewable; land is non-renewable
What is a key characteristic of natural resources as a factor of production?
They are unlimited in supply
They can be easily substituted
They are renewable and non-renewable
They are produced by human effort
What is an example of human capital in the production process?
Machinery used in manufacturing
An employee’s education and skills
The raw materials used in production
The land on which a factory is built
Fill in the blank: _______ is a factor of production that can be both renewable and non-renewable.
Labor
Capital
Natural resources
Human capital
What distinguishes an entrepreneur from other factors of production?
Ability to take risks and innovate
Ownership of land
Provision of financial capital
Supply of labor
According to liberals, the government should have a ______ role in the economy.
Minimal
Moderate
Extensive
None
Which economic system allows for economic affairs to be carried out freely but with some government intervention?
Command Economy
Mixed Economy
Traditional Economy
Market Economy
What is one of the roles of the government in maintaining a legal and social framework?
Enforce property rights
Create monopolies
Regulate natural resources
Provide public schools.
The government provides ______ when markets are unable to provide them.
Patents
Public schools
Anti-trust laws
Monetary systems
Smoke from a factory drops ash all over your car. Government’s economic function in this case is to:
stabilize the economy.
maintain competition.
provide public goods and services.
correct a negative externality.
Which of the following is a function of government in a liberal and conservative spectrum?
Providing public goods
Enforcing contracts
Approving mergers
Redistributing income
Who benefits from the regulation requiring Internet radio stations to pay royalty fees?
A) Artists and songwriters
B) Radio stations
C) Listeners
D) Advertisers
The headline 'Songwriter Sues Singer; Says Song Stolen' is related to which economic function?
Correct for Externalities
Stabilize the Economy
Provide Public Goods and Services
Maintain Competition
Maintain the Legal and Social Framework
"Government regulations impose an enormous burden on large and small businesses in America, discourage productivity, and contribute substantially to our current economic woes."
—President Ronald Reagan, January 22, 1981
What would President Reagan's economic policy MOST LIKELY be concerning regulations?
to propose many new regulations
to encourage private regulation of business
to cut back on the number of regulations
to preserve the existing level of government regulation
What is the economic concept that describes the limited nature of resources?
Abundance
Scarcity
Surplus
Wealth
Fill in the blank: Scarcity forces individuals and societies to make _________.
A) Decisions
B) Mistakes
C) Wealth
D) None
Which of the following is typically considered a 'want'?
Food
Shelter
Smartphone
Clothing
Fill in the blank: A shortage occurs when a good or service is ________ temporarily or long-term.
A) abundant
B) unavailable
C) plentiful
D) excessive
Fill in the blank: The need to make choices in an economy is a direct result of ______.
Unlimited resources
Scarcity
Equal distribution
Abundance
Which of the following is not a factor of production?
Land
Labor
Capitol
Technology
Which factor of production is associated with human effort and work?
Land
Labor
Capital
Entrepreneurship
Which factor of production is considered the financial investment used to produce goods and services?
Land
Labor
Capital
Entrepreneurship
What is the significance of 'Labor' in the factors of production?
It provides natural resources.
It represents human effort.
It is the financial investment.
It involves innovation and risk-taking.
Fill in the blank: Land as a factor of production includes real estate, agricultural land, and ________.
Machines
Resources
Water
People
Which of the following is NOT a factor of production?
Labor
Land
Money
Capital
What is the term for the physical and intellectual work of employees?
Capital
Labor
Enterprise
Land
The difference between scarcity and shortage is
scarcity is a natural & re-occurring condition; shortage is a man-made condition
shortage only happens with new products
shortage is a natural & re-occurring condition; scarcity is a man-made condition
shortage is the fundamental, universal economic problem
If 3 people want a candy bar, is there a scarcity?
Yes, there is a scarcity.
No, there is not a scarcity.
One advantage of credit is the ability to buy needed items now. True or False?
True
False
Which type of credit is typically used for purchasing a vehicle?
Credit Card
Car Loan
Student Loan
Home Loan
What type of credit is used for buying a house?
Credit Card
Car Loan
Student Loan
Home Loan
Fill in the blank: A ______ is a type of credit that involves borrowing money with interest.
Credit Card
Loan
Savings
Investment
What is one disadvantage of using credit?
Easy to save money
Easy to go into debt
Lower costs of items
No additional fees.
Using credit can lead to higher costs of items due to ______.
Discounts
Interest
Cashbacks
Rewards
Fill in the blank: Being responsible with credit and making payments on time can lead to ______.
Financial instability
A good credit score
Increased debt
Higher interest rates
What is a potential disadvantage of loving the 'cash back' rewards too much?
Overspending
Saving money
Building credit
Earning interest
What is a potential advantage of using credit for online shopping?
No need for internet
Builds credit history
Immediate purchase ability
No repayment required.
What should you consider before using credit for a purchase?
Interest rates
Repayment terms
Credit score impact
All of the above.
The term 'creditworthiness' refers to: A) The ability to earn money B) The likelihood of repaying debts C) The amount of savings D) The number of credit cards owned.
The ability to earn money
The likelihood of repaying debts
The amount of savings
The number of credit cards owned.
Credit is _____
money you are given, and promise to pay back later.
money you borrow and promise to pay back later.
money you borrow and don't have to pay back later.
None of the above.
An arrangement to receive cash, goods, or services now and pay for them in the future.
Credit
Asset
Interest
APR
Credit allows for purchases without cash.
True
False
Credit is free
True
False
Which of the following is a reason to use a bank?
To earn interest
To increase risk
To lose money
To avoid saving
What is a common feature of savings accounts?
Interest earnings
High risk
No security
No access
An Overdraft Fee is charged when: A) You deposit too much money B) You withdraw more than your account balance C) You open a new account D) You close an account.
You deposit too much money
You withdraw more than your account balance
You open a new account
You close an account
What feature helps teens stay on top of their account activity?
Account Alerts
Monthly Statements
Customer Service
Online Banking
How do banks make money if they offer free checking accounts?
Through service fees
By investing deposits
By charging ATM fees
By offering loans.
Fill in the blank: The image questions how banks are making money if checking accounts are available to so many people ______.
A) with fees
B) with interest
C) free of charge
D) with conditions
A bank run can cause a bank to ________ its operations.
A) Expand
B) Halt
C) Diversify
D) Simplify
The fear of losing savings can lead to a ________.
Bank run
Stock market boom
Economic stability
Technological advancement
A bank run is often associated with which of the following?
Economic stability
Financial panic
Political stability
Technological growth
If you pay your credit card bill after the due date, what fee might you incur?
Account fee
Minimum balance fee
Overdraft fee
Late fee
The fee charged for spending more than your account balance is called ________.
account fee
minimum balance fee
overdraft fee
late fee
Which of the following is a feature of a checking account?
High interest rates
Limited withdrawals
Check-writing ability
Penalty for early withdrawal
Checking accounts are most suitable for ____. A) Long-term investments B) Daily expenses C) Retirement savings D) Stock trading.
Long-term investments
Daily expenses
Retirement savings
Stock trading
Which account type is generally used for paying bills?
Checking account
Saving account
Retirement account
Investment account
Nonprofit financial cooperative owned and operated for the benefit of its members.
commercial bank
internet bank
community bank
credit union
In a command economy, who typically determines what to produce?
Consumers
Central authority
Private companies
Local communities
Who is largely credited with influencing modern societies to adopt command economies?
Adam Smith
Karl Marx
John Maynard Keynes
Milton Friedman
What is the main difference between socialism and communism in terms of ownership?
Socialism allows some private ownership
Communism allows some private ownership
Both allow full private ownership
Neither allows any private ownership
What is the purpose of the circular flow model in a market economy?
To visualize how all interactions occur in a market economy
To predict stock market trends
To calculate national GDP
To determine tax rates
What is the market for factors of production?
Product market
Service market
Factor market
Consumer market
Which of the following is NOT part of the circular flow diagram?
Firms
Households
Government
Product market
What is the role of factor markets in the circular flow model?
To distribute goods and services
To provide resources to businesses
To regulate consumer spending
To manage business income
In the circular flow model, what do businesses pay to factor markets?
Consumer spending
Business income
Payments for resources
Goods and services
Which of the following is a characteristic feature of a command economy?
High levels of entrepreneurial opportunities
Minimal government involvement in the economy
Centralized planning and governmental control of resources
Unrestricted competition among businesses
What is a disadvantage of a command economy?
It can lead to a lack of innovation due to government control.
It relies too much on ancient traditions.
It allows for too much competition.
It encourages too much private ownership.
Which of the following best describes a mixed economy?
An economy where all decisions are made by the government.
An economy that operates without any government intervention.
An economy that incorporates elements of both market and command economies.
An economy where decisions are made solely through market forces without any regulation.
Which of the following best describes a mixed economy?
An economy where all decisions are made by the government.
An economy that operates without any government intervention.
An economy that incorporates elements of both market (people) and command (government) economies.
An economy where decisions are made solely through market forces without any regulation.
Which type of economy is often associated with socialist or communist political systems?
Mixed Economy
Traditional Economy
Market Economy
Command Economy
What is a primary function of the product market in the circular flow model?
To provide labor to businesses
To manage financial transactions
To supply goods and services to households
To regulate government policies
Which economic system is characterized by private ownership and free markets?
Mixed Economy
Market Economy
Traditional Economy
Command Economy
In a mixed economy, what role does the government typically play?
Complete control over all economic activities
No involvement in economic activities
Regulation and oversight to ensure fair practices
Ownership of all businesses
In a command economy...…(check all that apply)
the government regulates the economic decisions
the people decide the system
mostly used under a Communist government
is a great system to live under
What is a key feature of a market economy?
Centralized decision-making
Fixed pricing by the government
Government ownership of all resources
Private ownership and voluntary exchange
In a traditional economy, what is the primary basis for economic decisions?
Government policies
Market demand
Customs and traditions
Technological advancements
Which of the following is a common criticism of a market economy?
It leads to inefficient resource allocation
It lacks consumer choice
It has excessive government intervention
It results in unequal distribution of wealth
