Free Printable Pre-Test Econ 2025

Free Printable Worksheets

Worksheets

Pre-Test Econ 2025

Total questions: 98

Worksheet time: 1hrs 27mins

Name

Class

Date

1.

the situation of having unlimited wants but limited resources

t

a)

Scarcity

b)

Opportunity Cost

c)

Implicit Costs

d)

Explicit Costs

2.

Opportunity Cost

a)

the situation of having unlimited wants but limited resources

b)

the most desirable alternative given up when a choice is made

c)

the traditional out of pocket costs associated with making a decision

d)

A punishment

3.

Free Market Economy

a)

The laws of supply and demand allocate resources, goods, and services with little government interference

b)

All resources are owned and controlled by the government

c)

Everyone knows their role, there is little uncertainty

d)

There is lack of progress because things are done the way they always have been done.

4.

Command Economy

a)

The laws of supply and demand allocate resources, goods, and services with little government interference

b)

All resources are owned and controlled by the government

c)

Everyone knows their role, there is little uncertainty

d)

Resources are controlled by households and businesses

5.

Traditional Economy

a)

The laws of supply and demand allocate resources, goods, and services with little government interference

b)

All resources are owned and controlled by the government

c)

Everyone knows their role, there is little uncertainty

d)

Resources are controlled by households and businesses

6.

An increase in the income of consumers causes

a)

a decrease in demand

b)

a decrease in supply

c)

an increase in demand

d)

an increase in supply

7.

A decrease in the cost of resources will result in

a)

a decrease in demand

b)

a decrease in supply

c)

an increase in demand

d)

an increase in supply

8.

Surplus

a)

Quantity Supplied is greater than Quantity Demanded

b)

Quantity Demanded is greater than Quantity Supplied

c)

the highest legal price that can be charges for a product

d)

the lowest legal price that can be paid for a product

9.

Shortage

a)

Quantity Supplied is greater than Quantity Demanded

b)

Quantity Demanded is greater than Quantity Supplied

c)

the highest legal price that can be charges for a product

d)

the lowest legal price that can be paid for a product

10.

Price Ceiling

a)

Quantity Supplied is greater than Quantity Demanded

b)

Quantity Demanded is greater than Quantity Supplied

c)

the highest legal price that can be charges for a product

d)

the lowest legal price that can be paid for a product

11.

Price Floor

a)

Quantity Supplied is greater than Quantity Demanded

b)

Quantity Demanded is greater than Quantity Supplied

c)

the highest legal price that can be charges for a product

d)

the lowest legal price that can be paid for a product

12.

Subsidy

a)

encourages less production of a product the government considers harmful

b)

encourages more production of a product the government considers beneficial

c)

the highest legal price that can be charges for a product

d)

the lowest legal price that can be paid for a product

13.

Excise Tax

a)

encourages less production of a product the government considers harmful

b)

encourages more production of a product the government considers beneficial

c)

the highest legal price that can be charges for a product

d)

the lowest legal price that can be paid for a product

14.

Gross Domestic Product

a)

the total market value of all the final goods and services produced within a country's borders in a specific year

b)

the percentage of the labor force that is looking for a job

c)

overall increase in the price level in an economy

d)

calculates the country’s economic output and accounts for the number of people in the country

15.

Inflation

a)

the total market value of all the final goods and services produced within a country's borders in a specific year

b)

the percentage of the labor force that is looking for a job

c)

overall increase in the price level in an economy

d)

calculates the country’s economic output and accounts for the number of people in the country

16.

Investing is best for

a)

short-term, financial goals, like building an emergency fund

b)

earning a little interest while keeping your money safe

c)

long-term financial goals, like paying for retirement

d)

guaranteed fast frowth on your money

17.

In your budgeting process, when should you look at recurring expenses?

a)

Before reviewing your wants

b)

After considering entertainment expenses

c)

Before looking at your needs

d)

After your wants but before your needs

18.

The amount of money you are paid after all taxes and deductions are taken out of your pay check is called

a)

gross pay

b)

net pay

c)

total pay

d)

Year to date pay

19.

The W2 form is a form that tells you

a)

how often you will be paid

b)

how much taxes you owe to the federal government

c)

how much taxes to withhold from your paycheck

d)

how much taxes you have paid in the last year based on how much you have earned

20.

Everyone interested in post secondary education should complete the Free

Application for Federal Student Aid (FAFSA) because

a)

it gives you access to private student loans.

b)

it gives you the opportunity to enroll early

c)

it allows you to be eligible for federal student aid and other scholarships and grants

d)

it is a requirement for college admission

21.

Why do entrepreneurs take risks?

a)

to set their own work hours

b)

to earn a profit for themselves

c)

to provide G/S to their customers

d)

to provide salaries and benefits to their employees

22.

Economics can be described as the study of

a)

Money

b)

Choices

c)

graphing

d)

price ceilings and price floors

23.

The amount of money a business makes after its expenses are paid

a)

profit

b)

supply

c)

demand

d)

scarcity

24.

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

a)

subsistence

b)

specialization

c)

scarcity

d)

bartering

25.

The opportunity cost of a good is

a)

its price in dollars and cents.

b)

the alternative goods forgone.

c)

the price of alternative goods foregone.

d)

none of the other options

26.

WHAT ARE THE 4 FACTORS OF PRODUCTION?

a)

Land, Capital, Need & Want

b)

Land, Labor, Capital, Entrepreneurs

c)

Water, Air, Food & Shelter

d)

Land, Capital, Good & Service

27.

Which of the following is an example of a trade off?

a)

Buying popcorn or ice cream

b)

Going to class and having fun

c)

Wearing a sweater during the winter

d)

None of the above

28.

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

a)

Limited

b)

Unlimited

c)

Natural

d)

Man-made

29.

Voluntary exchange is the free and willing exchange of goods and services where both parties...

a)

Are worse off

b)

Are forced to exchange with one another

c)

Mutually Benefit

d)

Have no alternatives in exchange

30.

Which of the following type of tax is collected by state and local governments but not by the federal government?

a)

Excise tax

b)

Income tax

c)

Sales tax

d)

Tariffs

31.

High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered into a period of --

a)

expansion

b)

investment

c)

stagflation

d)

recession

32.

*Few Sellers

*Some control over price

*High market entry barriers

*Some product differentiation

a)

Monopolistic competition

b)

Oligopoly

c)

Pure competition

d)

Natural monopoly

33.

Which of the following is most characteristic of the U.S. free enterprise system?

a)

Markets that respond to consumer demand

b)

Public ownership of the factors of production

c)

Nationalization of energy companies

d)

Government price controls

34.

Dell Software today announced the release of a fully localized Simplified Chinese version of Toad for Oracle. The new release marks the latest milestone for Dell Software's flagship database develpemnt and management solution.

--Press Release, Dell, July 2014 www.dell.com (http://dell.com)_(accessed July 24, 2014)

-What basic economic question is addressed in the press release?

a)

What to produce?

b)

How much to produce?

c)

How to produce?

d)

For whom to produce?

35.

The three basic economic questions are

a)

when, where and how

b)

for whom, when and where

c)

for whom, what and how

d)

why, where and when

36-39.

36.

What does TANSTAAFL stand for?

a)

The Art of Negotiation

b)

Try And Never Stop Trying, Always Fight Like

c)

There Ain't No Such Thing As A Free Lunch

d)

Take A Nap, Start Tomorrow, Always Find Love

37.

What does TANSTAAFL mean?

a)

There's always a cost to any decision

b)

Everything is free

c)

There's always a free lunch

d)

There's always a catch

38.

What does TANSTAAFL explain about fun jobs and wages?

a)

Fun jobs have equal wages

b)

Fun jobs have no impact on wages

c)

Fun jobs pay higher wages

d)

Fun jobs pay lower wages

39.

What is the trade-off explained by TANSTAAFL?

a)

More fun means higher wages, and higher wages means more fun

b)

More fun means lower wages, and higher wages means less fun

c)

More fun means equal wages, and higher wages means less fun

d)

More fun means lower wages, and higher wages means more fun

40.

The study of the economy as a whole...

a)

Macroeconomics

b)

Microeconomics

c)

Economics

d)

Supply and Demand

41.

The study of behavior of individual households, firms, and governments...

a)

Microeconomics

b)

Macroeconomics

c)

Economics

d)

Personal Finance

42.

Economy in which people make economic decisions based on their group's customs and values. Not common today.

a)

Traditional Economy

b)

Market Economy

c)

Command Economy

d)

Mixed Economy

43.

What is profit?

a)

The money a company has left after subtracting its costs from its sales

b)

The money earned by selling goods and services

c)

The cost of making one more unit of a product

d)

The price paid for using someone else's money

44.

The difference between a good and a service is that:

a)

Goods are available in unlimited quantaties and services are not

b)

Goods are tangible and services are not

c)

Services are available in unlimited quantaties and goods are not

d)

goods help satisfy unlimited wants and services do not

45.

What is the major difference between scarcity and a shortage?

a)

They are really the same

b)

Shortages always exist and scarcity is temporary

c)

Shortages are temporary and scarcity always exist.

d)

Scarcity is limited and shortages are unlimited

46.

Which of the following is capital good?

a)

flour

b)

a factory building

c)

learning to sew

d)

playing the violin

47.

Economics is the study of how people satisfy their ______ and ______.

a)

wants; thoughts

b)

thoughts; desires

c)

rent; utilities

d)

wants; needs

48.

For the law of demand, as price rises, what happens to quantity demanded?

a)

it goes up

b)

it goes down

c)

it stays the same

d)

it is not effected

49.

What is a substitute?

a)

Use in place of something similar quality

b)

The opposite of another good

c)

Use an exact replica of the same good

50.

Match the following determinants of demand

a)

Buyers preparing for a future event

1.

Expectations

b)

Amount of money consumers have to spend

2.

Income

c)

Influence & popularity of products

3.

Tastes

d)

Goods that are similar to another.

4.

Substitutes

51.

If Tom Brady says before every Super Bowl he will only eat a tablespoon of peanut butter. What shifter will be the reason for a change in demand:

a)

Taste and preference

b)

Price of related goods

c)

Income

d)

Expectat

52.

In economic terms, the marketplace

a)

exists only at the local level.

b)

is a place where people buy food.

c)

exists only at the national level.

d)

operates through voluntary exchange.

53.

Goods that people typically consume less of as income increase are considered

a)

normal goods

b)

inferior goods

c)

complementary goods

d)

substitute goods

54.

If the demand for a good increases when people's incomes increase,

a)

the good is an inferior good

b)

the law of demand is violated

c)

the good's demand curve must be upward sloping

d)

the good is a normal good

55.

What is this model depicting?

a)

change in demand

(decrease)

b)

change in quantity demanded

(increase)

c)

change in quantity demaned

(decrease)

d)

change in demand

(increase)

56.

a person or company that makes, grows, or supplies goods to sell is called the?

a)

damand

b)

price

c)

producer

d)

shortage

57.

An individual who purchases (buy) goods.

a)

producer

b)

consumer

c)

goods

d)

services

58.

In terms of resources, what do households provide for businesses?

a)

loans

b)

savings

c)

labor

d)

private goods

59.

What are the four main parts of the circular flow diagram?

a)

Product Market, Stock Market, Factor Market, Fish Market

b)

Product Market, House Market, Factor Market, Good Market

c)

Factor Market, Product Market, Households, Businesses

d)

Factor Market, households, Stock Market, super market

60.

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?

a)

Product Market

b)

Factor Market

c)

Firms

d)

Individuals

61.

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

a)

Resource Market

b)

Product Market

c)

Firms

d)

Individuals

62.

Money exchanged between an individual and a store for a good or service.

a)

Revenue

b)

Wages

c)

Rent

d)

Donation

63.

In terms of resources, what do businesses provide for households?

a)

income

b)

sales

c)

taxes

d)

private goods

64.

Which statement is true about the circular flow diagram?

a)

A Households are demanders in the product market and suppliers in the factor market

b)

A Business are demanders in the product market and suppliers in the factor market.

c)

A Households are demanders in the factor market and suppliers in the product market.

d)

A Businesses and households are not components of the circular flow diagram.

65.

The Business Cycle measures ___ over time.

a)

wealth

b)

inflation

c)

economic growth

66.

Economic recovery begins-

a)

above the trend line

b)

at the end of a recession (trough)

c)

at the "boom" period

67.

GDP declines during a(an)

a)

peak

b)

contraction

c)

expansion

68.

The business cycle rises above the trendline during-

a)

rescessions

b)

expansions

c)

troughs

69.

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

a)

Peak

b)

Contraction/Recession

c)

Trough

d)

Expansion/Growth/Recovery

70.

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

a)

Peak

b)

Contraction/Recession

c)

Trough

d)

Expansion/Growth/Recovery

71.

Which of the following is a peak?

a)

A

b)

B

c)

C

d)

D

72.

Which branch appropriates funds?

a)

Executive

b)

Legislative

c)

Judicial

d)

all three

73.

Who proproses the National budget

a)

Congress

b)

President

c)

Justices

74.

What we call the planned earning and spending for the nation

a)

Federal Budget

b)

Discretionary Spending

c)

Tax Plan

75.

What are 2 areas the Federal Government can earn revenue?

Check BOTH answers.

a)

Income Taxes

b)

Dog Tag Registration

c)

Social Security, Medicare & other Payroll Taxes

d)

Property Taxes

76.

What does "deficit" mean?

a)

It is when something is very wrong.

b)

It is the difference between the amount of revenue collected and the money spent.

c)

It is the money that the government spends.

77.

How does the Deficit contribute to the National Debt?

a)

It doesn't

b)

It gives tickets to the next upcoming Commanders season.

c)

The deficit is added to the US debt each year.

78.

What is it called when the government takes in more in revenue than it appropriates?

a)

surplus

b)

revenue

c)

defecit

d)

appropriations

79.

______ is when the governments expenditures and revenues are equal.

a)

Surplus

b)

Balanced Budget

c)

Deficit

80.

What is the goal of Fiscal Policy?

a)

To reduce government spending

b)

To increase tax policies

c)

To create policies that will stabilize the economy

d)

To influence the global market

81.

What is an excise tax?

a)

A tax levied on income

b)

A tax levied on certain goods and commodities produced or sold within a country and on licenses granted for certain activities

c)

A tax levied on all retail sales

d)

A tax levied on property ownership

82.

What type of tax system has a percentage of income paid in taxes that remains the same for all income levels?

a)

Progressive Tax

b)

Regressive Tax

c)

Proportional Tax

d)

None of the above

83.

In which tax system does the percentage of income paid in taxes increase as income increases?

a)

Progressive Tax

b)

Regressive Tax

c)

Proportional Tax

d)

None of the above

84.

Which tax system impacts lower paid workers more severely?

a)

Progressive

b)

Flat

c)

Proportional

d)

Regressive

85.

What was the purpose of the 16th Amendment in 1913?

a)

To introduce sales tax

b)

To allow Federal government to tax income in every state

c)

To repeal the income tax

d)

To decrease the tax rates

86.

Which statement best describes a proportional tax system?

a)

Lower earners pay a higher percentage of their income

b)

Everyone pays the same percentage of their income

c)

Tax rate decreases as income increases

d)

Tax rate increases as income increases

87.

Match the following

a)

Income Tax

1.

tax on money earned from a job

b)

Sales Tax

2.

Tax paid on items you buy

c)

Property Tax

3.

Tax paid on property you own

88.

If the government set the price at $700, would that be a price ceiling or floor?

a)

Price Ceiling

b)

Price Floor

c)

Neither

89.

The Law of Supply states:

a)

as price increases, supply increases

b)

as prices decrease, supply increases

c)

as price increases, quantity demanded decreases

d)

as price decreases, quantity demanded decreases

90.

Is the blue line located in the graph representing a price ceiling or price floor?

a)

Price ceiling

b)

Price floor

91.

Does the red line located on the graph represent a price ceiling or price floor?

a)

Price ceiling

b)

Price floor

92.

At the price of 1.00 there is a

a)

shortage of 200

b)

surplus of 200

c)

shortage of 400

d)

surplus of 400

93.

Suppose the government sets a price ceiling of $80. How large will the shortage be?

a)

5 million coats

b)

4 million coats

c)

3 million coats

d)

2 million coats

94.

What would result if the price were set at $1.75

a)

Surplus, Quantity Supplied is greater

b)

Shortage, Quantity Demanded is greater

c)

Quantity Supplied = Quantity Demanded

d)

$1.75

95.

An ___________ is when a few companies have significant control over a given market.

a)

partnership

b)

oligopoly

c)

monopoly

d)

revenue

96.

________________________ is what you earned AFTER deductions.

a)

Bonus Pay

b)

Gross Pay

c)

Net Pay

d)

Overtime Pay

97.

________________________ is what you earned BEFORE deductions.

a)

Bonus Pay

b)

Gross Pay

c)

Net Pay

d)

Overtime Pay

98.

The acronym "FICA" stands for...

a)

...First In Counting Aloud

b)

...Federal Investigators Cannot Argue

c)

...Federal Insurance Contributions Act

d)

...Financial Insurance Collective Agency

99.

The amount of money you earn from your job is called your ____________

a)

pay

b)

check

c)

income

d)

gross pay

100.

Form that lets employers how much federal tax to withhold from an employee’s paycheck

a)

Alabama Form A-4

b)

W-4

c)

I-9

d)

Job Application

e)

Resume

101.

Required charges of citizens by local, state, and federal governments are called:

a)

charges

b)

taxes

c)

fees

d)

paycheck deductions

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