WorksheetsEconomics final exam 2025
Total questions: 110
Worksheet time: 55mins
Name
Class
Date
1.
EPF.1.ER Why are scarcity and choice basic to the study of economics?
a)
Because most people have limited needs and wants
b)
Because there is an endless supply of all resources
c)
Because there is not an endless supply of all resources
d)
Because they are important factors of production
2.
EPF.1.CC What does the acronym TINSTAAFL mean?
a)
Lunches are free at school
b)
Every time you buy lunch someone gets one free
c)
Every economic decision has a cost, even if it might appear to be free
d)
Nothing, it’s a nonsensical bunch of letters
3.
Something such as air, food, or shelter that is necessary for survival is best described as which of the following?
a)
Wants
b)
Goods
c)
Needs
d)
Services
4.
EPF.1.ER In Economic terms, what do we call physical objects such as clothes, bicycles, houses, cars, toilet paper or shoes?
a)
Durables
b)
Goods
c)
Substitutes
d)
Services
5.
EPF.1.CC Which of the following terms is used to describe human-made resource that are used to create other goods and/or services?
a)
Capital
b)
Labor
c)
Entrepreneur
d)
Service
6.
In microeconomic terms, what do we call natural resources that are used to make goods and/or services?
a)
Equipment
b)
Money
c)
Labor
d)
Land
7.
The Opportunity cost of an economic decision is _________________________
a)
an alternative that we sacrifice when we make a decision.
b)
deciding whether to do or use one additional unit of some resource.
c)
the most desirable alternative given-up as a result of a particular decision.
d)
the study of how people seek to satisfy their needs and wants by making choices.
8.
EPF.1.ER Which of the following is the best definition of ECONOMICS?
a)
Learning to calculate your own income tax rate
b)
People making choices about limited resources and meeting their needs
c)
Decisions made about spending money that you have inherited
d)
The study of spending excess money on goods and services
9.
EPF.1.CC Entrepreneurs are people that __________
a)
work on the floor of the stock exchange
b)
help settle labor disputes
c)
produce all the country’s guns and butter
d)
put together land, labor, and capital to create new businesses for profit
10.
EPF.1.CC The purpose of the production possibilities curve is to______________
a)
show alternative ways to fully utilize an economy’s available resources
b)
show how a factory can use its workers in different ways
c)
tell farmers how many watermelons to plant
d)
give engineers a new way of deciding how to build manufacturing plants
11.
EPF.1.IN An example of an opportunity cost would be ___________________
a)
buying a movie ticket
b)
buying a computer to help get better grades in school
c)
the price of gasoline for a family trip
d)
not being able to afford a family trip because the family buys a computer
12.
EPF.1.ER The resources used to make goods and services are called _______
a)
opportunity costs
b)
production possibilities frontier
c)
gross national product
d)
factors of production
13.
EPF.1.IN Economic models are used for what main purpose?
a)
To create cars that get better gas mileage
b)
To help economists understand vital information and feel better about their decisions
c)
To help economists better understand data and make useful predictions
d)
To help politicians see all sides of an issue before voting on tax matters
14.
Labor, in economic terms, includes all of the following concepts EXCEPT:
a)
Abilities
b)
pay rate
c)
skills
d)
effort
15.
All of the following are factors of production EXCEPT ____
a)
Entrepreneurship
b)
time
c)
land
d)
capital
16.
EPF.1.CC All points represented on the curve of the production possibilities frontier represent:
a)
the maximum combinations of output
b)
the minimum combinations of output
c)
the maximum combinations of input
d)
the minimum combinations of input
17.
Increased productivity causes the production possibilities frontier to _____
a)
stay the same
b)
Shift Right
c)
Shift Left
d)
Bend toward the y-axis
18.
The money we spend on a good or service is only part of the actual cost; what do we call the overall cost of an economic decision?
a)
Investment
b)
Price Inclusion
c)
Opportunity Costs
d)
Accounting Measures
19.
One example of an economic model that graphically represents the concept of opportunity cost is:
a)
Laffer Curve
b)
Responce Curve
c)
PPC
d)
Supply and Demand Curve
20.
J M Keynes wrote an important book about government’s place in the economic world. When was the book published?
a)
During the Gilded Age
b)
During the American Revolution
c)
During the begining of the Roaring 20's
d)
During the Great Depression
21.
Which of the following is the best definition of an “entrepreneur?”
a)
are usually supported by rich relatives
b)
are not afraid to fail and sometimes do fail
c)
never take risks to grow their business
d)
always succeed in their endeavors
22.
The four factors of production are used to help us understand economic activity. Which of the following is another name economists might use for the four factors of production?
a)
inputs
b)
outputs
c)
piece-parts
d)
none of the above
23.
In Economic terms, which of the following is a good example of specialization?
a)
limiting people to one college degree due to economic market forces
b)
identifying people that are in need of special assistance
c)
identifying regions that can produce a type of grain better than others
d)
identifying areas that are known for extreme temperature variance in a 24 hour period
24.
Cost benefit analysis is the practice of __________
a)
making all property collectively owned by the society
b)
determining the number of benefits one can afford on their salary
c)
making decisions about the potential benefits of a given business decision
d)
inflating the cost of government contracts to increase company profits in down tax years
25.
Thinking like an economist involves all of the following EXCEPT: _____________
a)
Understanding the feelings of laid-off workers
b)
Cost-Benefit analysis
c)
Building simple models
d)
Making decisions in small steps
26.
1. A tractor would be an example of a Capital Good.
a)
True
b)
False
27.
2. Consumer goods are tools, equipment and machinery used to produce other goods or services
a)
True
b)
False
28.
3. The study of choices or decision making is sometimes called Economics
a)
True
b)
False
29.
4. Durable goods are economic products that have a useful life expectancy of less than three years
a)
True
b)
False
30.
5. A Factor Market is where factors of production like natural resources and capital resources would be bought and sold.
a)
True
b)
False
31.
6. During a period of recession, the GDP is growing and unemployment rates are dropping
a)
True
b)
False
32.
7. The condition that results from society not having enough resources to produce all the things people would like to have is called economic depression.
a)
True
b)
False
33.
8. Economists might call the capacity to provide satisfaction “Utility.”
a)
True
b)
False
34.
9. Economists would consider the rate of growth in non-durable goods orders as an effective measure of economic conditions.
a)
True
b)
False
35.
10. An example of a product market would be Target or Food Lion.
a)
True
b)
False
36.
11. Physical objects such as clothes, food, cell phones or eyeglasses are defined as ____________.
a)
Goods
b)
Substitutes
c)
Durables
d)
Services
37.
12. The “Opportunity Cost” of an economic decision is ___________________
a)
an alternative that we sacrifice when we make a decision.
b)
deciding whether to do or use one additional unit of some resource.
c)
the most desirable alternative given up as a result of that particular decision.
d)
the study of how people seek to satisfy their needs and wants by making choices.
38.
13. Which of the following is NOT one of the important economic goals of our government?
a)
Stable prices within all areas of the economy
b)
General satisfaction with careers and income growth opportunities
c)
High levels of employment within the workforce
d)
Growth in the production of goods and services
39.
14. Economists would consider all of the following to be an element of “Labor” EXCEPT:
a)
Abilities
b)
Skill
c)
Effort
d)
Credentials
40.
15. The resources used to make goods and services are called ______________
a)
opportunity costs
b)
gross national product
c)
production possibilities frontier
d)
factors of production
41.
16. Haircuts, repairs to home appliances, and entertainment are examples of _______
a)
Human Capital
b)
Consumers
c)
Services
d)
Scarcity
42.
17. All of the following are factors of production EXCEPT ______________
a)
Time
b)
Land
c)
Capital
d)
Entrepreneurship
43.
18. Economic goods are products that meet which of the following criteria:
a)
They must be transferable
b)
They must be useful
c)
They must be somewhat scarce
d)
All of these are criteria for economic goods
44.
19. Increased productivity would most likely result from which of the following changes?
a)
Adding additional workers
b)
Using more powerful equipment
c)
Applying the concept of division of labor
d)
Investing in products manufactured under the rules of the productivity guild of America
45.
20. These are mechanisms or places that bring together buyers and sellers of products or services:
a)
Scarcity
b)
Markets
c)
Capital
d)
On-line Chat rooms
46.
21. What do we call the accumulation of items that are tangible, scarce, useful, and transferable?
a)
building a nest-egg
b)
building an inheritance
c)
building wealth
d)
building a portfolio
47.
22. The dollar value of the total output of goods and services by a nation's economy in a one year period.
a)
GDP
b)
GNP
c)
PPF
d)
The Circular Flow of Economic Activity
48.
23. A Recession is when an economy has ____ consecutive quarters or ____ straight months of shrinking GDP
a)
2 / 6
b)
1 / 3
c)
4 / 12
d)
1 / 8
49.
24. Personal spending on items like food, clothes, medical expenses. (excludes new housing)
a)
Investment
b)
Net Exports
c)
Government spending
d)
Consumer spending
50.
25. A used car would be counted as part of GDP
a)
True
b)
False
51.
What is the study of behavior and decision-making of small units, such as individual people and businesses?
a)
Macroeconomics
b)
Microeconomics
c)
Demand theory
d)
Supply analysis
52.
According to the material, which of the following is NOT required for demand?
a)
Desire to own
b)
Ability to pay
c)
Willingness to buy
d)
Ownership of similar products
53.
The law of demand states that:
a)
The quantity demanded of a product varies directly with its price
b)
The quantity demanded of a product varies inversely with its price
c)
The quantity demanded of a product remains constant regardless of price
d)
The quantity demanded of a product is determined solely by consumer income
54.
In the example of Larry buying CDs, what was his purchasing behavior at a price of $20?
a)
He bought zero CDs
b)
He bought one CD
c)
He bought three CDs
d)
He bought five CDs
55.
On a demand curve graph, what is always represented on the y-axis?
a)
Quantity
b)
Time
c)
Price
d)
Consumer preference
56.
Which of the following best describes a market demand curve?
a)
It shows the behavior of a single buyer for a given product
b)
It shows the quantities that one company is willing to sell at various prices
c)
It reflects the behavior of all qualified buyers for a given product
d)
It illustrates how production costs change over time
57.
What happens when there is a "change in quantity demanded"?
a)
The entire demand curve shifts to the right or left
b)
There is movement along the curve in response to a change in price
c)
Consumer preferences permanently change
d)
The market experiences a shortage of goods
58.
Based on ABC Company's paper purchases, what quantity did they buy at $44.00 per case?
a)
8 cases
b)
10 cases
c)
16 cases
d)
22 cases
59.
What does "marginal utility" refer to?
a)
The total satisfaction from all units of a product
b)
The satisfaction you get from purchasing one more unit of a product
c)
The maximum price a consumer is willing to pay
d)
The minimum quantity a consumer will purchase
60.
What phenomenon occurs when consumers begin to receive less satisfaction from additional units of a product?
a)
Income effect
b)
Substitution effect
c)
Diminishing marginal utility
d)
Price elasticity
61.
If consumers experience an increase in income, how will this affect their buying habits according to the "income effect"?
a)
They will only buy products that have decreased in price
b)
They will change their buying habits even if prices don't change
c)
They will always buy the same quantity regardless of income
d)
They will only purchase luxury goods
62.
When a store puts some products on sale at a deep discount, what might happen to regular-priced goods?
a)
Regular-priced goods will see an increase in quantity demanded
b)
Regular-priced goods will see no change in quantity demanded
c)
Regular-priced goods will see a decline in quantity demanded with no price change
d)
Regular-priced goods will need to increase in quality
63.
What is the "substitution effect" in economics?
a)
When consumers substitute one brand for another of the same product
b)
When producers substitute cheaper materials in production
c)
When one product lowers its price, making it an attractive alternative to similar products
d)
When retailers substitute one product for another on store shelves
64.
Using the example of entertainment expenses, if movie prices go down, what might happen to concert ticket sales according to the substitution effect?
a)
Concert ticket sales would increase
b)
Concert ticket sales would remain the same
c)
Concert ticket prices would have to decrease
d)
Concert ticket sales might decline with no change in price
65.
Which of these companies purchased the highest quantity of paper at $42.00 per case?
a)
ABC Company
b)
XYZ Company
c)
JimCo
d)
None of the above
66.
When a demand curve shifts to the right, this indicates:
a)
A decrease in demand
b)
An increase in demand
c)
A change in quantity demanded
d)
No change in market conditions
67.
Which of the following is NOT considered a non-price factor that can cause a shift in demand?
a)
Consumer tastes
b)
Income levels
c)
Movement along the existing demand curve
d)
Number of consumers in the market
68.
If a scientific study revealed that cranberry juice prevents facial wrinkles, the demand curve for cranberry juice would:
a)
Shift to the left
b)
Remain unchanged
c)
Shift to the right
d)
Move along the same curve
69.
Products that can be used in place of each other are called:
a)
Complements
b)
Substitutes
c)
Elastic goods
d)
Inelastic goods
70.
If the price of Pepsi decreases significantly, what would likely happen to the demand for Coca-Cola?
a)
The demand for Coca-Cola would increase
b)
The demand for Coca-Cola would decrease
c)
The demand for Coca-Cola would remain unchanged
d)
The quantity demanded of Coca-Cola would increase
71.
Goods that are often purchased together are known as:
a)
Substitutes
b)
Elastic goods
c)
Complements
d)
Independent goods
72.
When consumers expect prices to rise in the future, what typically happens to current demand?
a)
Current demand decreases
b)
Current demand increases
c)
Current demand remains unchanged
d)
The demand curve becomes more elastic
73.
If Greenville County's population grows by 15%, the demand curve for groceries would:
a)
Shift to the left
b)
Remain unchanged
c)
Become more elastic
d)
Shift to the right
74.
Demand for prescription medicine is typically:
a)
Elastic
b)
Inelastic
c)
Perfectly elastic
d)
Unit elastic
75.
Which of the following products would most likely have elastic demand?
a)
Gasoline
b)
Luxury sports cars
c)
Table salt
d)
Insulin for diabetics
76.
Which factor does NOT determine the elasticity of demand?
a)
Whether the purchase can be delayed
b)
The color of the product
c)
Availability of substitutes
d)
Percentage of income spent on the purchase
77.
When a good consumes a large percentage of a consumer's income, demand tends to be:
a)
Inelastic
b)
Elastic
c)
Unchanged
d)
Perfectly inelastic
78.
If a negative news report causes consumers to suddenly dislike a product, this would result in:
a)
Movement along the demand curve
b)
A shift of the demand curve to the left
c)
A shift of the demand curve to the right
d)
No change in demand
79.
Which scenario would most likely cause an increase in demand for plywood?
a)
A decrease in the price of plywood
b)
A forecasted major storm approaching
c)
A decrease in population
d)
An increase in the price of nails
80.
When income increases in a community, the demand curve for normal goods would:
a)
Shift to the left
b)
Remain in the same position
c)
Shift to the right
d)
Become more inelastic
81.
According to the Law of Supply, what happens to the quantity offered by sellers when the price of a good or service increases?
a)
Quantity offered decreases
b)
Quantity offered remains the same
c)
Quantity offered increases
d)
Quantity offered fluctuates randomly
82.
What is the term for a response to a change in price by producers?
a)
Change in supply
b)
Change in quantity supplied
c)
Supply elasticity
d)
Supply schedule
83.
Which of the following is NOT one of the seven reasons for a change in supply discussed in the unit?
a)
Cost of inputs
b)
Consumer preferences
c)
Technology
d)
Government regulations
84.
If the costs of inputs decreases, how will this affect supply?
a)
Supply will decrease
b)
Supply will remain unchanged
c)
Supply will increase
d)
Supply will become more inelastic
85.
What happens to the supply curve when new technology increases productivity?
a)
The curve shifts to the left
b)
The curve shifts to the right
c)
The curve becomes steeper
d)
The curve becomes flatter
86.
How do increases in taxes typically affect supply?
a)
They cause supply to increase
b)
They cause supply to decrease
c)
They have no effect on supply
d)
They cause supply to become more elastic
87.
What is supply elasticity a measure of?
a)
How market supply responds to changes in consumer preferences
b)
How market supply responds to changes in price
c)
How market supply responds to changes in technology
d)
How market supply responds to changes in government regulations
88.
Which of the following would likely cause a shift of the supply curve to the left?
a)
Decrease in the cost of inputs
b)
Improved technology
c)
Suppliers leaving the market
d)
Government subsidies
89.
What is the primary factor that determines the elasticity of a business's supply curve?
a)
The number of competitors in the market
b)
The price of the product
c)
Consumer demand
d)
The nature of the business and its production process
90.
Which of the following would be considered a subsidy?
a)
A tax on cigarettes
b)
A fine for violating environmental regulations
c)
Price support payments to farmers
d)
A tariff on imported goods
91.
If workers are unhappy or unmotivated, how will this affect supply?
a)
Supply will increase
b)
Supply will decrease
c)
Supply will remain unchanged
d)
Supply will become perfectly elastic
92.
What does supply elasticity essentially measure?
a)
How quickly businesses can adjust production to meet demand
b)
How quickly businesses can respond to price changes
c)
How quickly businesses can adopt new technology
d)
How quickly businesses can hire new workers
93.
What happens to the supply curve when more producers enter a market?
a)
The curve shifts to the right
b)
The curve shifts to the left
c)
The curve becomes more inelastic
d)
The curve becomes steeper
94.
Which of the following products would likely have the MOST elastic supply?
a)
Aircraft carriers
b)
Off-shore oil drilling rigs
c)
Plastic spoons
d)
Handcrafted furniture
95.
How do increased government regulations generally affect production?
a)
They increase production costs and reduce supply
b)
They decrease production costs and increase supply
c)
They have no effect on production costs or supply
d)
They increase both production costs and supply
96.
What is the monetary value of a product called?
a)
Cost
b)
Expense
c)
Price
d)
Worth
97.
In a market economy, what determines price?
a)
Government regulations only
b)
Supply and demand
c)
Sellers' preferences only
d)
Buyers' preferences only
98.
In a market economy, buyers and sellers have:
a)
Identical goals
b)
Complementary interests
c)
Opposite hopes and desires
d)
No relationship to each other
99.
For a transaction to take place in a market economy, what must happen?
a)
The government must approve
b)
Buyers and sellers must compromise somewhat
c)
Prices must be fixed
d)
Only the seller must benefit
100.
In a market graph, what does the red line typically represent?
a)
Market supply
b)
Market demand
c)
Market equilibrium
d)
Government regulation
101.
Why do supply and demand curves go in opposite directions?
a)
Because of government intervention
b)
Because of market manipulation
c)
Because buyers and sellers have different goals about product prices
d)
Because economists designed the graphs that way
102.
Market equilibrium exists when:
a)
Quantity supplied exceeds quantity demanded
b)
Quantity demanded exceeds quantity supplied
c)
Government sets the price
d)
Quantity supplied equals quantity demanded
103.
What happens when quantity demanded exceeds quantity supplied?
a)
Surplus occurs
b)
Equilibrium is reached
c)
Shortage occurs
d)
Prices will go down
104.
When a shortage occurs, what typically happens to prices?
a)
They remain stable
b)
They go down
c)
They go up
d)
They become regulated
105.
A surplus exists when:
a)
Demand exceeds supply
b)
Supply equals demand
c)
Supply exceeds demand
d)
Government controls the market
106.
What typically happens to unsold merchandise during a surplus?
a)
It is immediately discarded
b)
It begins to build up on shelves
c)
It is always donated
d)
It is purchased by the government
107.
In a free market, prices will always move toward:
a)
The highest possible level
b)
The lowest possible level
c)
Government-mandated levels
d)
Equilibrium
108.
What is another name for the equilibrium price?
a)
Ceiling price
b)
Floor price
c)
Market clearing price
d)
Regulated price
109.
Rent controls are an example of:
a)
Price floors
b)
Price ceilings
c)
Market equilibrium
d)
Perfect competition
110.
Price ceilings typically cause:
a)
Surpluses
b)
Equilibrium
c)
Higher prices
d)
Shortages
100 %
