WorksheetsFLVS Economics
Total questions: 100
Worksheet time: 1hrs 11mins
Name
Class
Date
1.
Several Companies sell similar products is called what type of competition?
a)
Perfect Competition
b)
Monopolistic Competition
c)
Monopoly
d)
Oligopoly
2.
What is the biggest disadvantage of a Sole proprietorship and a partnership?
a)
Start Up Costs
b)
Taxes
c)
Unlimited Liability
d)
Receives all profits
3.
What is Macroeconomics the study of?
a)
study of total effects on the national economy and the global economy of the choices that individuals, businesses, and gov’ts make
b)
study of the choices individuals/businesses make and the way these choices interact and are influenced by governments
c)
study of marginal benefit and marginal cost
d)
study of scarcity
4.
A headline reads: "Consumers demand new cell phones with greater functionality." What basic economic question is being addressed in this headline?
a)
for whom to produce
b)
how to produce
c)
what to produce
d)
when to produce
5.
In Georgia, the Public Service Commission regulates the rates charged to customers by GA Power to ensure:
a)
GA Power gets enough money to make a profit.
b)
GA Power does not profit from the sale of electricity in Georgia.
c)
consumers are protected from sharp price increases by a monopoly.
d)
consumers are protected from power plant pollution.
6.
When a country’s businesses invest heavily in new capital goods and new technology, which of the following is most likely to occur?
a)
supply and demand.
b)
opportunity costs.
c)
economic growth.
d)
economic freedom.
7.
Interdependence and price leadership are characteristics of firms in what kind of market structure?
a)
monopoly
b)
oligopoly
c)
monopolistic competition
d)
perfect competition
8.
Sharon decided to open a dry-cleaning business. She borrowed some money from her sister and took a loan from a bank. She hired one helper. What is one disadvantage of Sharon’s business?
a)
no separation of ownership and control
b)
ease of organizing the firm
c)
unlimited liability
d)
double taxation
9.
The Federal Reserve wants to reduce the nation’s money supply. This could be accomplished by doing all of the following EXCEPT
a)
decreasing the discount rate
b)
increasing the reserve requirement
c)
selling securities on the open market
d)
making banks hold a reserve for all types of deposits
10.
If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is
a)
decreasing taxes
b)
decreasing spending
c)
decreasing the money supply
d)
decreasing the reserve requirement
11.
A system by which goods and services are produced and distributed is the:
a)
economy
b)
consumer
c)
interest
d)
debt
12.
House: Goods or Service?
a)
Goods
b)
Service
13.
UPS Delivery: Goods or Service?
a)
Goods
b)
Service
14.
What type of market structure has a few firms, and a lot of control over price?
a)
Perfect Competition
b)
Oligopoly
c)
Monopolistic Competition
d)
Monopoly
15.
If a study came out proving that chocolate milk was a healthy post-workout beverage, what would likely happen?
a)
Demand increases for Choc. Milk
b)
Demand Decreases for Choc. Milk
c)
Supply Increases for Choc. Milk
d)
Supply Decreases for Choc. Milk
16.
Based on the graph shown, what has happened?
a)
Supply Increase
b)
Supply Decrease
c)
Demand Increase
d)
Demand Decrease
17.
If the price of butter increases, then we would expect that the demand for margarine would fall.
a)
True
b)
False
18.
On the market demand and supply graph, the vertical axis shows __________________.
a)
demand.
b)
equilibrium.
c)
prices.
d)
quantity.
19.
On the demand and supply graph, the horizontal axis shows ________________.
a)
demand.
b)
equilibrium.
c)
prices.
d)
quantity.
20.
On the market demand and supply graph, the point equilibrium always happens
a)
at the highest point on the demand curve.
b)
where the demand and supply curves intersect.
c)
at the lowest point of the supply curve.
d)
at the center point of the graph, irrespective of the curves.
21.
A surplus happens when
a)
prices are too low relative to consumer demand.
b)
prices are too high relative to consumer demand.
c)
prices are too low relative to producer demand
d)
prices are too high relative to producer demand.
22.
Which of the following is the correct equation for GDP?
a)
C+I+T+(X+M)
b)
C+I+G+(X+M)
c)
C+I+G+(X-M)
d)
C+I+T+(X+M)
23.
When Americans buy electronics from China, what part of the GDP equation does this count as?
a)
Consumption
b)
Investments
c)
Imports
d)
Exports
24.
What term describes the Federal Reserve’s control of the money supply by adjusting interest rates?
a)
Fiscal Policy
b)
Federal Control
c)
Monetary Policy
d)
banking
25.
Who controls monetary policy?
a)
The President
b)
Federal Government
c)
Federal Reserve
d)
Mrs. Wesley
26.
As the price of a good rises in a market, it acts as a signal:
a)
consumers that they should buy a greater quantity of the good.
b)
to producers that they should supply a greater quantity of the good.
c)
to consumer that they should increase their demand for the good.
d)
to producers that they should increase their supply of the good.
27.
Organizers of many high-interest sporting events such as the Super Bowl and the World Series usually set ticket prices lower than the equilibrium price, citing fairness to the public as their reason. What names do economists give to the resulting set price and disequilibrium situation?
a)
price ceiling; surplus
b)
price ceiling; shortage
c)
price floor; shortage
d)
price floor; surplus
28.
Peggy, a recent college graduate, decides to look for a job instead of going to graduate school. If she is unable to find a job that suits her interests right away, what type of unemployment is she MOST likely experiencing?
a)
structural
b)
seasonal
c)
frictional
d)
cyclical
29.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
30.
What Price would make an effective Price to set a Price Ceiling?
a)
340
b)
320
c)
280
31.
In a typical business cycle, what stage immediately follows a peak?
a)
contraction
b)
expansion
c)
trough
d)
growth
32.
When the economy is working properly, what is the unemployment rate? (hint: it is the full employment rate)
a)
0 to 3 percent
b)
4 to 6 percent
c)
8 to 10 percent
d)
10 to 12 percent
33.
An example of structural unemployment is the
a)
decision to get rid of employees with redundant skills
b)
shutdown of a manufacturing plant due to a world recession
c)
decision by an employee to take a holiday before looking for a new job
d)
decision by an employee to leave Australia to seek work overseas
34.
What is not an example of a substitute?
a)
Train freight and truck freight
b)
Peanut butter and jelly
c)
Hershey's and Nestle chocolate
d)
Microsoft Word and Google Docs
35.
A person who comes up with a product or service, and finds the money and time to produce this new product.
a)
Entrepreneur
b)
Incentive
c)
Specialization
d)
Barter
36.
When it costs more to make a good than what you sell the good for.
a)
Loss
b)
Profit
c)
Tax
d)
Service
37.
How much people want something
a)
supply
b)
demand
38.
A general increase in prices
a)
price
b)
inflation
c)
scarcity
d)
demand
39.
How much of something is available
a)
supply
b)
demand
40.
If the government makes me produce 70 T-Shirts, what economic system is this?
a)
Mixed
b)
Traditional
c)
Command
d)
Market
41.
Which type of economy lets the private businesses make all of the decisions?
a)
Market
b)
Mixed
c)
Command
d)
Traditional
42.
If a country is Communist, what type of economy will they have?
a)
None
b)
Command
c)
Market
d)
Traditional
43.
What is a credit score?
a)
A credit score is a three-digit numerical rating that reflects how likely you are to fail at paying your debts
b)
A five-digit numerical rating that reflects how likely you are to repay your debt.
c)
A three-digit numerical rating that reflects how likely you are to repay your debt.
d)
A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts
44.
What if I have bad credit?
a)
High interest rates on loans
b)
You can easily be approved for a loan
c)
You have a high credit score
d)
You may have to live with Mr. Trump.
45.
Why budget?
a)
prevent debt
b)
plan for future
c)
save money
d)
all of these
46.
Credit union and commercial bank deposits of up to $250,000 are insured by what government backed program?
a)
FED
b)
NCU
c)
FDIC
d)
NAACP
47.
The total value of goods and services produced within the borders of a country during a specific time period, usually one year.
a)
GDP
b)
GNI
c)
GDP per capita
d)
HDI
48.
Coming into effect in 1994, NAFTA encouraged free trade between the United States and which two other countries?
a)
canda and cuba
b)
japan and china
c)
Canada and Mexico
d)
panama and brazil
49.
An exchange rate is used to
a)
promote the argument supporting free trade.
b)
promote the use of subsidies on foreign goods.
c)
determine the price of one country's imports in terms of another country's imports.
d)
determine the price of one country's currency in terms of another country's currency.
50.
What are tariffs?
a)
political boundaries between nations
b)
military blockades of specific countries
c)
disputes between state governments over boundaries
d)
taxes on the import of goods from a country
51.
When one country can produce a product more cheaply than another country can, this is called
a)
a tariff.
b)
free trade.
c)
comparative advantage.
d)
absolute advantage
52.
The reason why you cant have everything you want is because of
a)
Opportunity Cost
b)
Scarcity
c)
Incentive
d)
Choice
53.
The thing that you give up (the next best alternative) when you make a decision is known as
a)
Opportunity Cost
b)
Scarcity
c)
Incentive
d)
Choice
54.
Allows each member of society to make choices about how to use their resources
a)
Security
b)
efficiency
c)
Freedom
d)
Satbiility
55.
Promotes wise decision making when using resources
a)
stability
b)
freedom
freedom
freedom
c)
efficiency
d)
security
56.
Promotes a just and fair system
a)
freedom
b)
equity
c)
security
d)
growth
57.
Redcues extreme ups and downs in our economy and helps to keep prices from changing too quickly
a)
security
b)
growth
c)
full employment
d)
stability
58.
Cost of credit expressed as a yearly percentage
a)
Mortgage
b)
Principal
c)
APR
d)
Finance company
59.
Amount of money originally borrowed
a)
Mortgage
b)
Principal
c)
Annual percentage rate (APR)
d)
Finance company
60.
What does CD stand for when talking about investments?
a)
Calculated Dividend
b)
Certificate of Deposit
c)
Central Dollar
d)
Current Deposit
61.
Trade Policies:
A minimum acceptable benchmark.
A minimum acceptable benchmark.
a)
Tariff
b)
Quotas
c)
Product Standards
d)
Subsidies
62.
What is money that you can earn in your savings account or that you have to pay back on a loan?
a)
lucky money
b)
a loan
c)
interest
d)
tips
63.
An economy that is a blend between a command economy and a market economy is said to be?
a)
mixed
b)
traditional
c)
market
d)
command
64.
What are the 3 questions every economic system must answer for their country?
a)
What to produce?
How will the government produce it. Who will the leader produce it for.
How will the government produce it. Who will the leader produce it for.
b)
What to produce? How to produce it? For whom to produce it for?
c)
What to produce? How to produce it? When will the government produce it?
d)
When the dictator decides what to produce. How to produce it and for where it will be sold.
65.
What is being represented by the "red flow line"
a)
The flow of money
b)
The flow of goods and services
c)
Taxes
d)
Productive resources
66.
What is being represented by the "green flow lines"
a)
Flow of Money
b)
Flow of Goods and Services
c)
Taxes
d)
law
67.
In the products market,
a)
firms buy goods and services from households
b)
firms sell goods and services to households
c)
firms sell resources to households
d)
firms buy resources from households
68.
an economic rule stating that the quantity demanded and price move in opposite directions
a)
supply
b)
demand
c)
elastic demand
d)
law of demand
69.
a listing that shows the quantities demanded of a product at various prices
a)
law of demand
b)
demand schedule
c)
demand
d)
demand curve
70.
it is the money a business receives for its products or services over and above its costs
a)
sale
b)
purchase
c)
profit
d)
loss
71.
it is the government payment to an individual, business or other group for certain action
a)
subsidy
b)
capital
c)
labor
d)
goods
72.
the amount of goods and services produced from a given level of inputs
a)
productivity
b)
division of labor
c)
disposable income
d)
none of them
73.
a transaction in which a buyer and seller work out their own terms of exchange
a)
exchange
b)
production
c)
voluntary exchange
d)
specialization
74.
The North American Free Trade Agreement (NAFTA) is an economic agreement between which 3 countries?
a)
United States, Russia, China
b)
Canada, United States, Mexico
c)
Mexico, El Salvador, Spain
75.
A person or organization that uses a product or service is a(n):
a)
consumer
b)
economist
c)
loan shark
d)
debtor
76.
Which economic system uses bartering?
a)
Free Market
b)
Command
c)
Mixed
d)
Traditional
77.
Which is an example of a want?
a)
water
b)
clothing
c)
iPad
d)
shelter
78.
The total amount of a good or service that is available to buy is called
a)
demand
b)
incentive
c)
profit
d)
supply
79.
How willing people are to buy goods or services is called...
a)
scarcity
b)
resource
c)
demand
d)
good
80.
What are natural resources?
a)
People who make and sell your products.
b)
Things found in nature used to make a product.
c)
Goods made and used to produce other goods and services.
d)
Nature is a beautiful place.
81.
A telephone is ...
a)
a human resource
b)
a natural resource
c)
a capital resource
82.
Jim business focusing only on sporting goods. This is an example of __________________.
a)
opportunity cost
b)
inflation
c)
specialization
d)
profit
83.
When someone decides to open their own business, it is a good example of this economic term.
a)
free enterprise
b)
global enterprise
c)
interdependence
d)
opportunity cost
84.
Jane bought a doll for $22.99 in the summer. At Christmas time she saw the same doll for $59.99. This is an example of ____________________.
a)
profit
b)
loss
c)
inflation
d)
deflation
85.
The Andrew's family was trying to decide where to take their family vacation. The kids wanted to go to Florida. The parents wanted to go to California. The parents ending up deciding on California. Florida is _____________________ for the Andrew's family.
a)
free enterprise
b)
specialization
c)
loss
d)
opportunity cost
86.
Jimmy really wanted to buy the new NFL video game before Christmas but it cost $99.00. He decided to wait until after Christmas to buy it and then it only cost $59.00. This is an example of ____________________________.
a)
free enterprise
b)
deflation
c)
price increase
d)
inflation
87.
At Christmas time it is always hard to find the newest toy. Because they are so popular and people want to buy them the price of the item ____________________.
a)
decreases
b)
stays the same
c)
increases
d)
deflation
88.
When you are looking for a job but can't find one you are experiencing _____________________________.
a)
unemployment
b)
employment
c)
laziness
d)
free enterprise
89.
What happens to the price of goods as they become more scarce?
a)
Prices go up
b)
Prices go down
c)
Prices equal out
d)
Prices are not effected
90.
What economic indicator is impacted if a country doesn't have good healthcare?
a)
GDP per capita
b)
Life Expectancy
c)
Literacy Rate
d)
Internet Users
91.
What type of economy does the U.S. have?
a)
Market
b)
Mixed
c)
Command
d)
Traditional
92.
When supply is high and demand is low, you have a
a)
Surplus
b)
Scarcity
c)
Free Market
d)
Shortage
93.
Android often waits to release new phones until after the latest iPhone release. This lowers the price of the iPhone slightly due to the:
a)
competition
b)
economy
c)
consumer
d)
command economy
94.
Consumers, through their purchases and wants/needs end up influencing the supply/demand ratios. This is the underlying idea behind:
a)
consumer sovereignty
b)
labor
c)
producer
d)
natural resour
95.
The supply of umbrellas during the rainy season will
a)
increase
b)
decrease
96.
The demand for umbrellas during the rainy season will:
a)
increase
b)
decrease
97.
Which is an asset?
a)
Mortgage
b)
Balance on a credit card or loan
c)
Boat loan
d)
Stocks you own
98.
Interest is:
a)
The cost of borrowing money
b)
A good thing to have to pay
c)
The amount of money that you borrow to buy something
d)
A word that we used in class but has no real meaning
99.
Amount of money originally borrowed
a)
Mortgage
b)
Principal
c)
Annual percentage rate (APR)
d)
Finance company
100.
A block or restriction on trade with another country is called
a)
Tariff
b)
Embargo
c)
Quota
100 %
