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- 1. Multiple Choice
__________study of how people (including companies/countries) make choices on buying, selling, using, and distributing goods/services.
A. Economics
B. Consumer Science
C. Opportunity Costs
- 2. Multiple ChoiceBasic Economic Problem: Mismatch of unlimited wants and needs and unlimited economic resources.TrueFalse
- 3. Multiple Choice
__________ Things required to live such as food, shelter, clothing, air
A. Need
B. Want
C. Tradeoff
- 4. Multiple Choice
____________ The actual thing you gave up to have something else. Everything has a cost
A. Opportunity Cost
B. Tradeoff
C. Incentive
- 5. Multiple Choice
_____________ anything that it used to make a good or service.
A. Resources
B. Good
C. Service
- 6. Multiple ChoiceThe two branches of economics are micro & macro.TrueFalse
- 7. Multiple Choice
_____________ network of institutions, markets, and contracts that bring lenders and borrowers together
A. Financial system
B. banks
C. Private Enterprise
- 8. Multiple Choice
_______________ father of economics, wrote the wealth of nations, and believed in a concept known as the invisible hand.
A. Adam Smith
B. David Ricardo
C. Thomas Malthus
- 9. Multiple Choice
____________ supply & demand determines what gets produced
A. Free Market Economy
B. Closed Economy
C. Socialism
- 10. Multiple Choice
_____________________ study of production, employment, prices, and policies (will unemployment rise if there is an increase in taxes)
Macroeconomics
Microeconomics
Opportunity Cost
- 11. Multiple Choice
______________ not having enough resources to satisfy all of the needs/wants
Scarcity
Opportunity Cost
Tradeoff
- 12. Multiple Choice
_____________ not enough of something that people want
Scarcity
Opportunity Cost
Tradeoff
- 13. Multiple Choice
Scarcity forces people to_____________________
Make Choices
satisfy all their wants and needs
Give up opportunity cost
- 14. Multiple Choice
What is the difference between a shortage and scarcity?
A shortage is temporary but scarcity always exists
A shortage results from rising prices; scarcity results from falling prices
A shortage is lack of all goods and services; scarcity concerns a single item
There is no real difference between a shortage and scarcity
- 15. Multiple Choice
Economics is the study of how people seek to satisfy their needs and wants by making choices.
True
False
- 16. Multiple Choice
Individuals who come up with a new idea for a good or service, then they make it a reality
resource
human resources
consumer
entrepreneur
- 17. Multiple Choice
Which of the following is a need?
Ice cream
Houses
Basketballs
Candy!!! (I want candy)
- 18. Multiple Choice
What is the fundamental problem of every society?
labor costs
scarcity
economic interdependence
market fluctuation
- 19. Multiple Choice
What are the 3 economic questions?
What to produce? How To Produce? For whom to produce?
Who to produce? Why you produce? Like to produce?
Why to produce? Tell who to produce? Things to produce?
What to produce? How to produce? When to produce?
- 20. Multiple Choice
The Gross National Product (GNP) is
I'm not sure Mr. Szymkowiak. I need to study this concept more!
all of the goods and services produced annually in a nation OR the market value of goods and services by all citizens of a country- both domestically and abroad
a type of food
the measure of total quality of economic life in a nation in 1 year
- 21. Multiple Choice
What choice below describes the following definition: the theory of social science that deals with issues such as money, banking, wealth, resources, interest rates, inflation, unemployment, business cycles, investing, etc.
Economics
Life!
I'm not sure, Mr. S.! Can you help me out?
KFC
- 22. Multiple Choice
All of the following are factors of production except
Land
Money
Labor
Chicken
- 23. Multiple Choice
Which is an example of a renewable resource?
Timber
Windpower
Water
All of the above
- 24. Multiple Choice
Please complete the following sentence: ____ are people whose efforts and skills go into the production of goods and services.
Labor
Markets
Economics
Resources
- 25. Multiple Choice
What are the four types of resources? Choose all that apply?
Land
Labor
Capital
Entrepreneurship.
- 26. Multiple Choice
When we make a choice the option we give up is the ______________________________.
Scarcity
Opportunity Cost
Capital
Entrepreneurship
- 27. Multiple Choice
What is the Law of Supply?
Producers (businesses) will offer more for sale at higher prices.
The producer that can produce the most output OR requires the least amount of inputs (resources).
There is more supply than demand.
Limit the amount of a product to keep prices on imports high to protect domestic producers.
- 28. Multiple Choice
What is equilibrium price?
the lowest legal price – creates a surplus
the highest legal price – creates a shortage
designed to make money for the government.
the price at which supply meets demand
- 29. Multiple Choice
What does it mean when there is a shortage?
there is more demand than supply
there is more supply than demand
Our supply of natural resources is finite.
Spending all of your money on that new iPhone and not having enough left over to get groceries.
- 30. Multiple Choice
What is a price ceiling?
the lowest legal price – creates a surplus
the highest legal price – creates a shortage
The lowest customers are willing to pay for a product.
The highest price customers are willing to pay for a product.
- 31. Multiple Choice
What is demand?
I need to pay the bills... but Imma go to Disneyland instead.
The value, or worth, that we place on a product.
the amount of something that producers will offer for sale at all prices.
the desire, ability, and willingness to buy a product
- 32. Multiple Choice
What is a revenue tariff?
Intended to make imported goods more expensive than domestic goods.
A tax on imported tea that makes me want to dump it into the harbor.
Designed to make money for the government.
Limit the amount of a product to keep prices on imports high to protect domestic producers.
- 33. Multiple Choice
Foreign Exchange
The buying and selling of the currencies of different nations.
Another name for international trade.
A program in which students can study in other countries.
The process of exporting goods to other countries.
- 34. Multiple Choice
What is supply?
The amount of money you are willing to supply to get that new iPhone.
Illustrates how the quantity that a person will demand varies depending on the price of a good or service
The amount of resources available to make a product.
The amount of something that producers will offer for sale at all prices.
- 35. Multiple Choice
Define price floor.
The highest legal price – creates a shortage
The lowest legal price – creates a surplus.
The lowest price people are willing to pay for an item.
The lowest price producers are willing to set for an item.
- 36. Multiple Choice
What is surplus?
There is more demand than supply.
The quantity demanded of a good or service varies inversely with its price.
Occurs when companies create false scarcity to sell an item.
There is more supply than demand.
- 37. Multiple Choice
Describe the Law of Demand.
The quantity demanded of a good or service varies inversely with its price.
Producers (businesses) will offer more for sale at higher prices.
"If you build it, they will come."
The more producers charge for an item, the higher demand will be.
- 38. Multiple ChoiceThe short run is a time period in which:all resources are fixed.the level of output is fixed.the size of the production plant is variablesome resources are fixed and others are variable.
- 39. Multiple ChoiceThe law of diminishing returns states that:as a firm uses more of a variable resource, given the quantity of fixed resources, Page 2 the average product of the firm will increase.as a firm uses more of a variable resource, given the quantity of fixed resources, marginal product of the firm will eventually decrease.in the short run, the average total costs of the firm will eventually diminish.in the long run, the average total costs of the firm will eventually diminish.
- 40. Multiple ChoiceWhich of the following short-run cost curves declines continuously?Average total costMarginal costAverage fixed costAverage variable cost
- 41. Multiple Choiceis the market value of all final goods and services produced within a country in a given period of time.GDPCostMicroeconomics
- 42. Multiple Choice
Which statement reflects the inverse relationship between quantity demanded and price?
As the price goes up, quantity demanded goes up.
As the price goes down, quantity demanded goes up.
As the supply goes up, the price goes up.
As the supply goes up, the demand goes up.
- 43. Multiple Choice
According to the substitution effect, if two items satisfy the same need and the price of one rises,
people will buy more of the higher-priced item.
people will buy more of the lower-priced item.
the demand will go up.
people will buy something else.
- 44. Multiple Choice
Which economic rule states that the additional satisfaction people get from consuming one more unit of a product will lessen with each additional unit they consume?
real income effect
law of diminishing marginal utility
law of demand
substitution effect
- 45. Multiple Choice
The amount of goods and services people can actually buy is their
voluntary exchange.
purchasing power.
utility.
substitution effect.
- 46. Multiple Choice
How does an increase in consumer population affect the demand for most products?
demand decreases
prices go down
demand increases
prices go up
- 47. Multiple Choice
A shift to the left in the demand curve indicates a(n)
decrease in price.
decrease in demand.
increase in population.
increase in demand.
- 48. Multiple Choice
If two products are complementary goods, how will a decrease in the price of one affect the other?
demand will increase
price will increase
demand will decrease
price will decrease
- 49. Multiple Choice
Prices on goods and services are determined
only by demand.
only by supply.
by both demand and supply.
neither by demand nor supply.
- 50. Multiple ChoiceSam loves science and wants to become a doctor but he is learning how to make clay bricks like his father and grandfather.Free MarketTraditionalMixedCommand
- 51. Multiple ChoiceKatia is an accountant in a government run business where she was placed after graduation.CommandTraditionalFree MarketMixed
- 52. Multiple ChoiceTed is working towards his dream of becoming a lawyer by working at a law firm as a legal clerk.Free MarketTraditionalCommand
- 53. Multiple ChoiceSally works in a private company that has to follow government rules for public safety.Free MarketCommandMixedTraditional
- 54. Multiple Choice
In which economic system is the protection of private property rights essential?
Command
Traditional
Market
Socialism
- 55. Multiple Choice
Which of the following best explains a mixed economy?
Private ownership of the factors of production and regulation of businesses by government
Market exchanges answer all three of the big economic questions
Family customs and traditions determine what and how to produce a good
Government answers all three of the big economic questions
- 56. Multiple ChoiceWhat type of economic system is based on customs and beliefs?MarketMixedTraditionalcommand
- 57. Multiple ChoiceWhen someone or a business chooses to specialize or produce certain items.EntrepreneurEconomicsVoluntary ExchangeSpecialization
- 58. Multiple ChoiceWhich of the following is NOT a natural resource?OilWaterCarAir
- 59. Multiple ChoiceWhich of the following IS a capital resource?WoodComputerLaborKnowledge
- 60. Multiple ChoiceOn this PPC, which point is efficient?ACDNone
- 61. Multiple ChoiceOn the PPC, which point is inefficient?ABCD
- 62. Multiple ChoiceOn the PPC, which point is unobtainable?ABCD
- 63. Multiple ChoiceYou make a decision without looking at the costs and benefits. Have you used marginal analysis?YesNo
- 64. Multiple Choice
When all aspects of the economy are determined by a central governmental figure
CommandMarketMixedTraditional - 65. Multiple ChoiceDecisions in the economy are based on buyer/seller choicesCommandMarketMixedTraditional
- 66. Multiple ChoiceCombines public and private businessesCommandMarketMixedTraditional
- 67. Multiple ChoiceThe place where goods and services are exchangedbartercurrencymarketresource
- 68. Multiple ChoiceA person who buys goods and servicesconsumerentrepreneurresourcecurrency
- 69. Multiple Choice
Why someone chooses to buy one product over another is studying in
Microeconomics
Macro economics
Business relations
- 70. Multiple Choice
The gross national product of a country would be studied in:
Microeconomics
Macro economics
Business relations
- 71. Multiple ChoiceSmith believed that the economy operated according to three natural laws involving this concept...self-interestcompassioncitizenshiptrustworthiness
- 72. Multiple Choice
Which famous book did Adam Smith write?
Wealth of Nations
Communist Manifesto
Green Eggs and Ham
The Bible
- 73. Multiple Choice
What did Adam Smith say was a force that guided the economy?
The Invisible Man
The Invisible Ham
The Invisible Hand
The invisible Force
- 74. Multiple ChoiceIndividuals who come up with a new idea for a good or service, then they make it a realityresourcehuman resourcesconsumerentrepreneur
- 75. Multiple ChoiceWhen something given up for something else is called?ChoiceCapitalismInflationOpportunity Cost
- 76. Multiple Choice
The amount of a good available in a market is ______________.
Supply
Demand
Value
Equilibrium
- 77. Multiple Choice
A ____________ is if the supply of something is high but the demand is low then the price drops.
Surplus
Shortage
- 78. Multiple Choice
If the supply of something is low but the demand is high then the price rises is known as a ___________________
Surplus
Shortage
- 79. Multiple Choice
Based on this graph, what was the OLD equilibrium price?
$2.25
$2.50
$3.00
$3.25
- 80. Multiple Choice
Based on this graph, what is the NEW equilibrium price?
$2.25
$2.50
$3.00
$3.25
- 81. Multiple Choice
Based on this graph, what is the NEW equilibrium Supply of gasoline?
30 million
35 million
45 million
40 million
- 82. Multiple Choice
Based on this graph, which way did the demand shift?
Right
Left
Up
Down
- 83. Multiple Choice
Adam Smith was Known as the _______________
First Economist
Inventor of Communism
Theorist of divisions of labor
The first official pope of the Irish
- 84. Multiple Choice
___________________ is the study of how consumers, workers, and firms interact to generate outcomes in specific markets.
Macroeconomics
Microeconomics
Economics
Equilibrium
- 85. Multiple Choice
A state in a market where supply and demand are equal is known as a(n) ___________________.
Scarcity
Shortage
Equilibrium
Surplus
- 86. Multiple Choice
Under perfect competition,
products are similar but not identical.
numerous restrictions prevent firms from entering the market.
no seller can sell a product above the prevailing market price and products are identical
a single seller can affect price and their is a small number of buyers and sellers
- 87. Multiple Choice
A barrier to entry into a market is known as
an economic term for economies of scale
illegal in most markets
anything that prevents new firms from entering the market
a factor that increases competition
- 88. Multiple Choice
Sony gets new technology that will allow more PlayStation 5s to be produced each hour. How will this affect the supply of PS5s?
No shift in the supply curve, it is a price change
- 89. Multiple Choice
The government places strict regulations on fracking (a way of drilling for oil) to prevent oil spills and other problems that can harm the environment. How will this affect the supply of oil?
No shift in the supply curve, it is a price change
- 90. Multiple Choice
Mattel (a toy maker) expects the new Barbie to be the “IT” toy at Christmas. How will this affect the supply of Barbie Dolls?
No shift in the supply curve, it is a price change
- 91. Multiple Choice
A terrible blizzard destroys the herds of most ranchers in the western U.S. How will this affect the supply of beef?
No shift in the supply curve, it is a price change
- 92. Multiple Choice
An increase in Demand is located by moving from point ________ to point_________
Moving from A to B
Moving from A to C
Moving from C to A
Moving from B to A
- 93. Multiple ChoiceThe law of demand refers to howdemand changes when people's incomes changedemand changes when the prices of substitutes and complements changethe quantity demanded changes when the price of the good changesthe price of the good changes when people's demand for the good changes
- 94. Multiple Choice
Consider the market for cellular phones. Which of the following shifts the demand curve to the left?
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
- 95. Multiple Choice
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
- 96. Multiple Choice
The graph represents which concept of demand
Change in Price
Decrease in Demand
Change in Quantity Demand (Slide)
Change in Demand (Shift)
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