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Final Exam Review- Chapters 1-5

Total questions: 41

Worksheet time: 22mins

Name
Class
Date
1.

Economics is the study of how people

a)

choose from limited resources to meet their wants and needs.

b)

govern a country.

c)

gain knowledge and skills from studying.

d)

calculate their income.

2.

We all want more stuff than we have the resources to get. This concept is called

a)

Specialization

b)

Productivity

c)

Profit

d)

Scarcity

3.

Who's the "Father of Economics"?

a)

Friedrich Engels

b)

Vladimir Lenin

c)

Karl Marx

d)

Adam Smith

4.

The more we have of something, the less satisfaction we get from it. This is called what?

a)

Murphy's Law

b)

Opportunity Cost

c)

Microeconomics

d)

The Law of Diminishing Marginal Utility

5.

When a family decides to move to a different apartment, what type of economics is involved?

a)

Macroeconomics

b)

Microeconomics

c)

Reaganomics

d)

Nanoeconomoics

6.

When the government decides what income tax rate to assign to wealthy Americans, what type of economics is involved?

a)

Macroeconomics

b)

Microeconomics

c)

Nanoeconomics

d)

Reaganomics

7.

When people make choices, they give up something. The thing they give up is called what?

a)

Factor of Production

b)

Resources

c)

Opportunity Cost

d)

Efficiency

8.

What type of economic system do we use in America?

a)

Command Economy

b)

Traditional Economy

c)

Pure Market Economy

d)

Mixed Economy

9.

Which of the following are the 3 Economic Questions that all societies must answer?

a)

What to Produce?

b)

How to Produce Stuff?

c)

When to Produce Stuff?

d)

Who Should Get the Stuff We Make?

10.

Command Economies have been used in which of the following nations?

a)

Cuba

b)

North Korea

c)

The Soviet Union

d)

Viet Nam

11.

What was the original economic system (once used everywhere)?

a)

Traditional

b)

Market

c)

Mixed

d)

Command

12.

If the government is answering all three economic questions, what type of economic system are people there using?

a)

Mixed

b)

Market

c)

Command

d)

Traditional

13.

What's the economic term for people who start businesses to meet previously unmet needs?

a)

Consumers

b)

Managers

c)

Entrepreneurs

d)

Bureaucrats

14.

In a Market Economy, who answers the 3 Main Economic Questions?

a)

Consumers

b)

Producers

c)

Consumers and Producers

d)

The Government

15.

The difference between a good and a service is that a Service is

a)

Something You Can Buy

b)

Something You Can Hold

c)

Something You Do For Someone Else for Money

d)

Never Paid For

16.

The difference between a good and a service is that a Good is

a)

Something You Can Buy

b)

Something You Can Hold

c)

Something You Do For Someone Else for Money

d)

Never Paid For

17.

The term for the dollar value of the goods and services produced in a nation in one year is

a)

Inflation

b)

GDP

c)

Capitalism

d)

Unemployment

18.

Consumers are the people who

a)

Make products

b)

Sell Products

c)

Buy Products

d)

Live in the South

19.

In what economic system are people's work roles the same as their parents?

a)

Traditional

b)

Market

c)

Mixed

d)

Command

20.

The property owned by governments is called

a)

Public Property

b)

Private Property

c)

Stolen Property

d)

Inherited Property

21.

Who came up with the economic theory of communism?

a)

Adam Smith

b)

Karl Marx

c)

Thomas Sowell

d)

Steven Hawkings

22.

The amount of a good that you can get at any and all prices is called

a)

Demand

b)

Supply

c)

Law of Demand

d)

Law of Supply

23.

When inflation is high, but unemployment is low, what will the Fed do?

a)

Raise Interest Rates

b)

Lower Interest Rates

c)

Keep Interest Rates Where They Are

d)

Start Printing Money

24.

When inflation is low but the unemployment rate is high, what will the Fed do?

a)

Raise Interest Rates

b)

Lower Interest Rates

c)

Print Lots of Money

d)

Leave Interest Rates the Same

25.

The amount of donuts that buyers want from Dunkin Donuts at various prices is called

a)

Demand

b)

Law of Demand

c)

Supply

d)

Law of Supply

26.

How is fiat money unlike commodity money?

a)

Fiat Money is no longer used in America

b)

Commodity Money has no value other than as money

c)

Fiat Money is only valuable because the government says so

d)

Most nations use commodity money today

27.

Why are cryptocurrencies, such as Bitcoin, still an issue today?

a)

It's not durable.

b)

It's not scarce.

c)

It's not easily divisible.

d)

It's not widely accepted.

28.

In America today, what type of money do we use?

a)

Fiat Money

b)

Representative Money

c)

Commodity Money

d)

Beads and Shells

29.

When prices go up for something, consumer demand for the item drops. This is related to

a)

The Law of Supply

b)

Supply

c)

Demand

d)

The Law of Demand

30.

The Federal Reserve has three main goals when managing America's economy. These relate to

a)

Low Unemployment

b)

Healthy Economic Growth

c)

Low Inflation

d)

Quality of Life

31.


The price for Wilson Basketballs drops by 50% in 6 Months. As a result

a)

Demand Will Fall

b)

Supply Will Fall

c)

Supply Will Rise

d)

Demand Will Rise

32.

Who owns credit unions?

a)

People who bank there

b)

Shareholders

c)

All members of the community

d)

The government

33.

Why do credit unions give you lower interest loans than banks do?

a)

Credit Unions are owned by their members so they give the savings back to them.

b)

They don't. S&Ls and credit unions give you the same interest rates.

c)

S&Ls pay their employees better.

d)

Credit Unions don't have to pay as much for utilities.

34.

Which organization helps regulate America's money supply?

a)

The Supreme Court

b)

Better Business Bureau

c)

National Bankers of America

d)

The Federal Reserve

35.

Maybelline Mascara becomes less fashionable. What's likely to happen as a result?

a)

Supply will rise.

b)

Supply will fall.

c)

Demand will rise.

d)

Demand will fall.

36.

The price for new cars goes up by 25% in 3 months. As a result...?

a)

Demand for new cars will drop.

b)

Demand for new cars will rise.

c)

Supply of new cars will drop.

d)

Supply of new cars will rise.

37.

Apple realizes they can charge more for MacBooks, so they make more. This is most closely related to

a)

The Law of Demand

b)

The Law of Supply

c)

Demand

d)

Supply

38.

The place where the quantity of supply and the amount demanded are equal is called

a)

The Law of Supply

b)

Market Price

c)

Supply

d)

Demand

39.

The Person Who Puts Money in a Bank Account is called

a)

Creditor

b)

Depositor

c)

Sucker

d)

Lender

40.

Georgia Boot opens an outlet store in Massena. The average price for work boots in Massena drops by 30%. The price drop resulted from

a)

Greater Supply

b)

Decreased Supply

c)

Greater Demand

d)

Decreased Demand

41.

On a check, who is the "endorser"? The person who

a)

Writes their name on the back of the check.

b)

Wrote the Check.

c)

Makes Payment on the Check.

d)

Printed the Check