Worksheets2025 EPF Exam Review
Total questions: 43
Worksheet time: 22mins
Adam Smiths concept of the Invisible Hand regulates a free market economy
incentives and efficiency
competition and self-interest
specialization
trade and wealth
Limited resources for unlimited wants/needs creates what?
scarcity
opportunity cost
consequences
surplus
Adam Smith is often called the "Father of Capitalism". What is another term to describe this type of economic system?
mercantilism
colonization
laissez-faire
socialism
Which of the following is NOT a factor of production?
capital
labor
land
time
Any good or service that has a price, and is thus being rationed, is known as what?
feels good
unlimited good
economic good
factor good
Which of the following is a scarce resource?
Labor used to produce television sets
TVs
TV transmitted into the atmosphere
enjoyment from TV
The basic reason people operate businesses in the United States is their desire to…
pay taxes
serve their customers
earn a profit
sell their products
Making choices in a world of scarcity means that you must…
spend your money carefully to get what you want
work hard
pass up alternatives
save your income
How did the Soviet Union become an economic power?
foreign investment
economic transition to free market
implementing laissez faire policies
focusing on heavy industry
How did the Soviet Union become an economic power?
foreign investment
free market
laissez faire polices
heavy industry
What is the name of the book Adam Smith wrote
Wealth of a Nation
Free Market Economy
Principles of self-interest
Economics what is that?
When the government owns all property and controls all the resources
socialism
communism
market socialism
authoritarian
Henry Ford created the assembly line, what kind of example is that?
economic transition
incentives
specialization
privatization
Which one is not part of the three basic questions
what goods should I produce
How to produce the goods
who gets the goods
who makes the goods
how is production in traditional economies determined
government laws
customs and traditions
market forces
central planning
Adam Smith states market forces coordinate production by?
invisible hand
government degree
court ruling
majority rules
In a command economy which one is not true
living space is rationed
prices are set
resources are controlled
competition is encouraged
The gold rush is an example of which factor affecting demand
substitute items
income of consumers
derived demand
expectations of future price changes
What value is on the vertical axis of the supply curve
quanity
supply
price
elasticity
brand names are an example of what
complementary goods
inferior goods
elasticity
normal goods
Which of the following would not shift the demand curve on beef
widely publicized study that beef is harmful
reduction in price for the feed
effective advertisement on chicken
change in income of people buying beef
why does an increase in price reduce the amount people are buying
supply curves are upsloping
higher prices means that real income has increased
consumers will substitute other products that cost less
consumers subsitute higher price items
a decrease in supply will cause the supply curve to shift which way
horizontally right
horizontally left
vertically right
vertically left
Which one is not part of the T.I.R.E.S
income of consumers
complementary goods
demographics
technology
What does technology generally do to production
lowers the cost and decreases supply
lowers the cost and increases supply
doesn't change it
increases cost and decreases supply
The government wants more people to grow corn, what would the government do to help the farmers
excise taxes
regulation
supply
subsidies
which one is not part of T.I.G.E.R.S (supply)
tastes and preferences of consumers
taxes
number of sellers
expectation of future price changes
which one represents demand
Diego earned $50 working last week
Valerie saved $15 last week
Haroon bought a CD for $16 last week
Abdul wished he could afford to buy a used car
a surplus of a product means?
prices is above the equilibrium price and the price will fall soon
price is above the equilibrium price and the price will rise
prices is below the equilibrium prices and the price will fall
price is below the equilibrium price and the price will rise
Market demand reflects the demand of
individual consumer
all consumers in the market
single supplier
all suppliers in the market
which one is an example of complements
butter and margine
milk and water
bread and butter
cookies and cake
What is the difference between nominal and real GDP
exports
inflation
consumer spending
financial assets
how do you compare two countries with different populations
nominal GDP
expenditures
real GDP
real GDP per capita
How many times has the real GDP increased in the US
1
2
3
4
products that are used to create new products is called what
used
intermediate
aggregate
internal
real GDP per capita in the US is which one
$44912
$65297
$51689
$39135
Which one is not part of the Federal Reserve System
Open market committee
board of governors
regional reserve banks
US Treasury
Which President vetoed the renewal of the second bank of the US
John Adams
Alexander Hamilton
Andrew Jackson
Thomas jefferson
Which of the following is included using the M1 method of calculating the money supply
savings accounts
checking accounts
money market
CD
Where does Fiat money get its value
Government
commondities
gold
silver
exchanging one set of goods for another is called
commodieties
barter
portability
currency
Which law enacted in the late 1800's to regulate monopolies
Lincoln Banking Act
16th Amendment
Roosevelt Act
Sherman Act
An oligopoly consists of the top ____ firms controlling ____% of the market output
2/90
5/60
4/70
3/85
