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Economics Exam Review 2

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The place where the supply curve intersects the demand curve is known as equilibrium.

a)

True

b)

False

2.

Which of the following is true about the demand curve?

a)

As the supply quantity rises, the good’s demand decreases

b)

As the price rises, the good’s demand decreases

c)

As the price rises, the good’s demand increases

d)

As the cost rises, the good’s demand increases

3.

Supply and demand are __________ related.

a)

Uniformly

b)

Rarely

c)

Not

d)

Inversely

4.

Select all of the following choices which are characteristics of the supply curve.

a)

Displays a consumer’s willingness to buy a product

b)

Demonstrates the law of supply

c)

All factors affecting supply remain unchanged

d)

Upward slope

e)

Downward slope

5.

a. ______________ is the theories, b. ___________________ and models which deal with the production, c. ___________________, and consumption of goods and d. _________________. Economics can be divided into e. ______________ branches.

a)

a. Economics

b. Principles

c. Distribution

d. Services

e. Two

b)

a. Principles

b. Distribution

c. Services

d. Economics

e. Three

c)

a. Economics

b. Services

c. Distribution

d. Principles

e. Four

d)

a. Distribution

b. Principles

c. Economics

d. Services

e. Five

6.

Marco lives in a country where his career is determined by the careers of his ancestors. Which of the following economic systems does Marco’s country practice?

a)

Traditional

b)

Market

c)

Centrally planned

d)

Mixed

7.

Which type of economic system allows full freedom to make decisions about employment, expenditures, savings and capital?

a)

Centrally planned economic systems

b)

Tradition economic systems

c)

Market economic systems

d)

Mixed economic systems

8.

“To what degree is competition allowed” is one basic question to ask when distinguishing between economic systems.

a)

True

b)

False

9.

Select all of the following choices which are considered to be disadvantages of a mixed economic system.

a)

Freedom of consumer choice

b)

Consumer needs are not met

c)

Higher taxation to support public services

d)

Some government control

e)

Abuse of power and corruption could exist

10.

__________ allows for the private ownership and management of businesses and resources.

a)

Economics

b)

Laissez-faire

c)

Socialism

d)

Capitalism