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EPF Final 12/25

Total questions: 26

Worksheet time: 13mins

Name
Class
Date
1.

A company wants to manufacture trucks, sports cars, and SUVs, but does not have the capacity to produce all three types of vehicles. They decided to manufacture only SUVs. What economic term applies to trucks and sports cars? EPF.E.1.4

a)

Monopoly

b)

Recession

c)

Opportunity cost

d)

Capital resource

2.

Which of the following options would most likely cause an increase in the demand for a good at this time? EPF.E.1.3

a)

The price of a good is about to rise dramatically in the future

b)

A decrease in the popularity of the good

c)

A decrease in the population

d)

A decrease in disposable income

3.

What does macroeconomics focus on?

a)

Individual businesses and households

b)

The economy as a whole, such as national unemployment and GDP

c)

Prices of specific goods in a single store

d)

How a company sets its wages

4.

Which country is the best example of a planned economy today?

a)

United States

b)

North Korea

c)

Singapore

d)

Australia

5.

A new agricultural machine makes the corn harvest faster and cheaper.

a)

Supply increases

b)

Supply decreases

c)

Demand increases

d)

Demand decreases

6.

Sally works at a private company that must follow government regulations for public safety.

a)

Market

b)

Mixed

c)

Planned

d)

Traditional

7.

A new health study shows that drinking green tea improves memory.

a)

Supply increases

b)

Supply decreases

c)

Demand increases

d)

Demand decreases

8.

What type of cost occurs when a person pays for a piano lesson instead of going to the movies? EPF.E.1.4

a)

Marginal cost

b)

Opportunity cost

c)

Musical cost

d)

Fixed cost

9.

In a market economy, prices are determined by…

a)

Government planners

b)

Supply and demand

c)

International trade laws

d)

A voting system

10.

Which of the following types of businesses is likely to be a monopolistic competitor? EPF.E.1.2

a)

Fast food chains

b)

An automobile manufacturer

c)

A local telephone company

d)

Electric company

11.

What are incentives in economics?

a)

The total amount of goods and services produced by a country

b)

Rewards or punishments that motivate people to act in a certain way

c)

The limited resources that create scarcity

d)

The cost of the next best alternative when making a decision

12.

Why do governments establish rules to control how markets operate?

a)

To give a company total control

b)

To solve problems that affect others, such as pollution

c)

To stop supply and demand

d)

To limit competition

13.

A regulation that limits factory pollution is an example of the government trying to solve:

a)

The control of monopolies

b)

Negative side effects

c)

Price limits

d)

What people want to buy

14.

What is the main way that governments get money to pay for things like roads and schools?

a)

Donations from people

b)

Taxes and fees

c)

Lottery sales

d)

Voluntary contributions

15.

How can North Carolina benefit from trade with other countries?

a)

By buying products it cannot economically manufacture

b)

By avoiding trade completely

c)

By selling only to one country

d)

By refusing to specialize in anything

16.

Which industries in North Carolina compete the most globally?

a)

Local beauty salons

b)

Agriculture, technology, and furniture

c)

Small local stores

d)

Only US-based services

17.

Why does the government apply special taxes to things like cigarettes or gasoline?

a)

To discourage their purchase and raise money

b)

To help people buy more

c)

To eliminate all competition

d)

To simplify taxes

18.

Which of the following options describes what scarcity is in the context of economics? EPF.E.1.4

a)

Needs and wants exceed the amount of available resources

b)

The concept of supply and demand

c)

A social science that deals with people's needs and wants

d)

A limited amount of resources compared to prices

19.

Which of the following options usually occurs during a period of economic expansion? EPF.E.2.3

a)

Decrease in sales and production

b)

Increase in the unemployment rate

c)

Decrease in demand

d)

Increase in production and sales

20.

What is the most important factor in determining how much to save for retirement? EPF.FP.1.1

a)

The individual's credit score

b)

The individual's risk tolerance

c)

The amount of money in the individual's emergency fund

d)

The number of years the individual plans to remain in the workforce

21.

Which element should be included when determining fixed expenses for financial planning purposes? EPF.FP.1.1

a)

Monthly rent or mortgage

b)

Home maintenance

c)

Entertainment

d)

New Jordans

22.

What type of investment is suitable for a person who does not fear possible losses and seeks to obtain large profits? EPF.FP.1.1

a)

Investment fund

b)

Guaranteed bonds

c)

Investing in the stock market

d)

Bank savings account

23.

Jake joins his company's 401(k) plan. How will this action affect his annual personal income? EPF.FP.1.1

a)

His gross salary will increase, but his net salary will decrease

b)

His disposable income will decrease, but his retirement income will increase

c)

His monthly paycheck will increase, but his annual federal tax bill will decrease

d)

The amount in his savings account will decrease, but his disposable income will increase

24.

What is the best advice you can give a friend about using a credit card? EPF.MCM.3.2

a)

Pay the minimum payment each month on time

b)

Pay the full balance on time each month

c)

Use the credit card to withdraw cash from an ATM instead of your debit card, as it is cheaper

d)

Make sure to borrow up to your credit limit, as this will help your credit score

25.

What is the best way to improve your credit score? EPF.MCM.3.2

a)

Make credit card payments on time

b)

Apply for more credit cards

c)

Apply only for VISA cards

d)

Spend more money than you have in your account

26.

Which of the following is NOT considered when calculating your FICO score? EPF.MCM.3.2

a)

Your payment history

b)

The types of credit you are using

c)

The amount of debt you owe

d)

Your income