WorksheetsEPF 1st Semester Exam Review
Total questions: 58
Worksheet time: 30mins
Connor is starting a bakery and needs to make some important decisions. Which of the following is not one of the three basic economic questions he should consider?
How will it be produced?
What will be charged?
For whom will it be produced?
What will be produced?
Cartier and Elysia are studying different types of economies for their school project. They come across North Korea, Spain, a small rural community, and the Soviet Union. Which of the following is, or could be, an example of a traditional economy?
North Korea
Spain
A small rural community
The Soviet Union
Cartier and Elysia are studying different countries for their economics class. They want to know which of the following has a command economy.
The United States
Spain
England
North Korea
Abby runs a small bakery and notices that the government rarely interferes with how she sets prices or chooses suppliers. What does this approach most closely mean in economic policy?
Citizens must follow traditional economic roles
Government allows markets to operate with minimal intervention
Corporations control markets through strict regulation
Government directs most market decisions actively
Ku'von and Abby are studying different countries' economies for their class project. They want to know which country is best described as having a mixed market economy. Which should they choose?
The Soviet Union under full state control
Norway combining markets and welfare policies
A small rural village with barter trade
North Korea with centralized planning only
Jahazel is planning a community event and has a limited budget and time. Which statement about scarcity in Jahazel's situation is false?
Scarcity means resources are limited, not infinite
Scarcity makes it challenging to allocate resources well
Scarcity forces choices about using time or money
Scarcity implies society’s wants and resources are limitless
Cartier is deciding how to spend his Saturday afternoon. He can either practice tennis or spend time with a friend. Which option correctly identifies the opportunity cost in this situation?
Practicing tennis means tennis is the opportunity cost, not the time with a friend
Practicing tennis means the tennis itself is the opportunity cost
Practicing tennis means you lose time with a friend; the lost time is the opportunity cost
Practicing tennis means tennis is Cartier’s opportunity cost
Cartier runs a lemonade stand. Cartier wants to know what happens if they make one more cup of lemonade. In economics, the term marginal means additional.
True
False
Ku'von is deciding whether to buy a new phone. If buying the phone leads to more costs than benefits, Ku'von's decision is likely poor.
True
False
Adriana considers Spring Break with friends. Parents offer a paid family trip instead. If Adriana must work an extra shift to afford the friends’ trip, what is the marginal benefit described?
Saving money by accepting the parents’ offer
Extra enjoyment from time with close friends
Additional sleep from skipping the extra shift
Working extra hours to gain spending money
Connor is organizing resources for his new business. He has a list that includes steel, ideas, a computer, and grain. Which item is not a tangible resource?
steel
ideas
computer
grain
Maria and Leon are learning about how businesses operate. They read that factors of production are essential for creating goods and services. Which statement is not true about factors of production?
They are used to produce goods and services.
They are the building blocks of all economies.
Economic growth occurs when quantity and quality decrease.
The categories include natural, human, capital, entrepreneurship.
Connor and Abby are learning about natural resources in their science class. Their teacher asks them: Which of the following is true about natural resources?
Renewable resources include gold and coal.
They can be renewable or exhaustible.
Renewable resources replenish very slowly or not at all.
Nonrenewable resources include water, soil, trees, and sunlight.
Tristin is starting a new business and is considering what he needs to succeed. He thinks about hiring workers with different skills, education, and experience, as well as the number of people he can employ. Which factor of production refers to tangible resources like the physical number of workers available, or intangible resources like skills, education, and experience of workers?
human resources
capital resources
entrepreneurship
natural resources
Addison and Tristin are starting a new business and are deciding what they need. Which of the following is an example of a capital resource?
ideas used to start a business
factories
education of workers
iron
Sarah is thinking about starting a new business. Which of the following is not true of entrepreneurs like Sarah?
They use ideas and abilities to start a business or produce a new product.
They use natural, human, and capital resources to create something with value.
There are not marginal costs or benefits for them to consider.
They take risks.
Adriana sees a buy-one-get-one free sale on shoes at her favorite store. Is this an incentive or a disincentive?
incentive
disincentive
Michelle and Cartier are considering different offers from banks and stores. Which of the following is considered an incentive?
Offering customers a low interest rate for opening a savings account.
Providing lower wages to highly skilled workers.
Offering a rewards card to use at the grocery store.
Providing a low return on investment to investors.
Maria, Connor, and Luke each own a company that sells the same type of product in the U.S. market. Why does the U.S. government regulate competition among their companies?
To stop innovation and keep prices of goods from rising too high.
To keep the economy stable and stop innovation.
To protect consumers and stop innovation.
To keep the economy stable and protect consumers.
Maria and Leon are studying international finance and learn that the U.S. dollar and the ____ are the two major global currencies which countries typically set their exchange rates against.
Chinese yuan
Australian dollar
European euro
Bitcoin
Michelle is on vacation in Belgium, and she wants to buy one of their famous Belgian waffles. The waffles cost 3 euros. The current exchange rate is 1.02 euros to the U.S. dollar. How many U.S. dollars will Michelle be spending on the waffles?
$3.06
$1.02
$3.00
$2.94
On Michelle and Tristin's trip to Israel, the exchange rate went from 3.57 to 3.61 Israeli shekels to the U.S. dollar. What does this mean?
The dollar got stronger and the shekel got weaker, so you can buy more Israeli goods.
The dollar got stronger and the shekel got weaker, so you can buy fewer Israeli goods.
The dollar got weaker and the shekel got stronger, so you can buy fewer Israeli goods.
The dollar got weaker and the shekel got stronger, so you can buy more Israeli goods.
Sarah goes to a local market to buy some vegetables. She notices that people are using different methods to pay: some use coins, some use paper money, some use cryptocurrency, and some try to exchange goods directly without using money. Which of the following methods Sarah observes would not be considered a modern-day medium of exchange?
barter
cryptocurrency
coins
paper money
Maria has done a lot of research, and found a tablet she loves that is imported from China to the United States. She arrived at the electronics store and discovered that the tablet costs more than it did last week. What might be a reason for the price increase?
The U.S. dollar is now stronger than the Chinese yuan, so the price of exports has decreased.
The U.S. dollar is now weaker than the Chinese yuan, so the price of exports has increased.
The U.S. dollar is now stronger than the Chinese yuan, so the price of imports has increased.
The U.S. dollar is now weaker than the Chinese yuan, so the price of imports has increased.
Sarah and Connor are learning about how the U.S. government pays for its programs and services. They wonder, what is the U.S. government's main source of income?
tax revenues
appropriations
charitable donations
Treasury bonds
Keshawn wants to calculate his net worth. He knows the value of his assets and his liabilities. What is the formula he should use to find his net worth?
net worth = assets + liabilities
net worth = liabilities x assets
net worth = assets - liabilities
net worth = liabilities - assets
Michelle has 30,000 in assets,but she owes 3,000 on her car loan. What is her net worth?
$10
$27,000
$33,000
$30,000
Connor wants to understand his financial position. Which statement best describes a net worth statement?
It lists assets and liabilities to calculate net worth
It only lists short-term assets and excludes liabilities
It tracks monthly income and expenses for budgeting
It subtracts assets from liabilities in the first section
Michelle is reviewing her finances and lists the following: Auto loan: 12,000; Cash: 700; Home value: 250,000; Student loan: 17,000. What are her total assets?
$279,000
$221,000
$250,700
$29,000
Adriana’s Personal Net Worth Statement shows liabilities: Auto loan 7,000;Creditcarddebt 2,000; Mortgage 300,000;Studentloan 15,000. What are her total liabilities?
$361,000
$324,000
$685,000
$37,000
Cartier created this personal net worth statement. What is his net worth? Assets: Cash 5,000;InvestmentAccounts 11,000; Home Value 325,000;CarValue 18,000; Jewelry 2,000.Liabilities:AutoLoan 7,000; Credit Card Debt 2,000;Mortgage 300,000; Student Loan $15,000.
$324,000
$361,000
$685,000
$67,000
Adriana notices that income taxes have increased. As a result, Adriana takes home less money from each month's paycheck.
False
True
Addison noticed that her FICA taxes decreased this year. She takes home more money now, but she wonders if this means she might have less money saved for retirement in the future. Is this true?
True
False
Michelle is considering buying a home. She notices that interest rates are currently low. Is it more cost effective for Michelle to buy a home now than if interest rates were high?
True
False
Imagine four friends are planning for retirement and discussing how much money they might receive from Social Security. Based on their work history and the age they plan to start receiving benefits, who will get the most money?
Jonathon, twenty years worked, starts at seventy
Alex, twenty years worked, starts at sixty-two
Dylan, forty years worked, starts at sixty-two
Tristin, forty years worked, starts at seventy
Which option shows how money is used today?
Jonathon trades a receipt to get his car washed
Farmer trades chickens for family shoes
Michelle uses gold coins to buy clothing
Abby pays $20 paper money for medication
Ku'von and Maria are learning about money in their economics class. Their teacher asks, which statement does not explain why money is limited?
Money can be divided in smaller amounts
Only the government can print money
Only the government can coin money
The government controls money in circulation
Adriana wants to buy a cup of coffee at her local café. Since money is a ___, she can use it to pay for the coffee.
store of value
unit of account
controlled currency
medium of exchange
Michelle and Dylan are studying how decisions made by the Federal Open Market Committee (FOMC) can influence the amount of money and credit, known as the ____ , in the U.S. economy.
bank runs
government securities
interest rates
money supply
Suppose Elysia is working at the Federal Reserve and is responsible for monitoring interactions between investors, savers, borrowers, and businesses. By doing this, the Fed is trying to ____ .
stabilize the U.S. financial system
keep interest rates low
give consumers a forum to file their complaints about financial institutions
act as the "bank" to local banks
Suppose Addison and Maria are discussing the U.S. economy, which is slowing down. They wonder what the Federal Reserve might do to encourage more borrowing and spending. What might the Fed do to loosen the money supply in the U.S.?
Set a discount rate
Lower the interest rate
Borrow money from independent banks
Raise the interest rate
Cartier and Abby are considering opening an account at a local financial institution. They read that a "Commercial Bank" is a non-profit financial organization that has member-owners. While it tends to be located only regionally or locally, its service is typically exceptional. Is this statement about commercial banks accurate?
False
True
Michelle and Jonathon want to open a checking account at a local bank. They wonder if most banks require a minimum amount of money to open a checking account.
False
True
Sarah is ordering new checks for her checking account. The fee for those checks can be automatically withdrawn from her checking account.
False
True
Connor uses his ATM card at a bank that is not his own. He may be charged a fee.
True
False
Addison is considering switching to online banking. Which of the following are benefits Addison could enjoy? Select all that apply.
Customers can set an alert to know when their balance is low.
Customers can visit a brick and mortar building.
Customers do not have to keep track of paper statements.
Customers can do banking 24 hours a day.
When there is a shortage the price will usually?
rise
fall
remain the same
equilibrium
A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?
The supply will probably go up
The supply will probably go down
Which of the following is a determinant of demand?
Production technology
Number of sellers
Tastes and Preferences
Cost of inputs
The number of consumers who want and able to buy a good or service.
demand
supply
opportunity cost
entrepreneur
Consider the market for cellular phones. Which of the following shifts the demand curve leftward?
studies showing using cellular phones can cause brain cancer
a decrease in the price of cellular phones
a decrease in the quantity demanded of cellular phones
an increase in the services provided by cellular phones, such as text messaging
Oreo cookies are now extremely expensive to purchase. Instead of buying Oreo cookies, I now want to buy Chips Ahoy. What determinant of demand does this likely fall under?
Change in Price of Complementary Good
Change in Price of Substitute Good
Change in Consumer Price Expectations
Change in Number of Consumers in the Market
Cars and gasoline are complements. What will happen to the demand curve for gasoline if the price of cars decreases?
The demand curve for gasoline will shift upward and to the right
The demand curve for gasoline will shift downward and to the left
There will be an upward movement along the original demand curve
There will be a downward movement along the original demand curve
Quantity demanded moves along the demand curve...
in response to changes in price
as PI3CS shifts
as elasticity reacts
as supply changes
In a ______________, the government makes all the basic economic decisions.
Traditional Economy
Command Economy
Mixed Economy
Market Economy
John buys two donuts every morning for $1 (50 cents each). One day the price goes up to $1 each. Now John just buys one. The demand for donuts goes down. This is an example of the _______ effect.
income
Substitution
Mandela
Butterfly
In August _________ of school supplies is high.
Demand
Supply
A & B
Which of the following is a variable that Demand relies on?
Amount of the Product available
Cost to make the Product
Delivery Time for Product
Time spent on making the Product
