Practice worksheet # 2 EOCT

CHAPTERS 1,2

1. Society cannot produce all that it wants, what is this called?

a. trade offs b. markets c. scarcity d. opportunity cost

2. Which is not 1 of the factors of production?

a. labor b. capital c. land d. ability e. entrepreneurs

3. Which isn’t included in the 3 basic economic questions as it relates to production?

a. how b. what c. why d. for whom

4. Economics is the study of trying to satisfy unlimited wants with limited…..

a. needs b. wants c. scarcity d. resources

5. Consumers cannot have all they want, this is known as…….

a. scarcity b. trade offs c. costs d. inflation

6. _________ costs refer to the cost of the next best choice to choice you made.

a. total b. marginal c. opportunity d. fixed

7. Production possibilities frontier shows an economy operating at ……

a. it’s best b. it’s worst c. below avg. d. slightly above avg.

8. Which type of good is intended for use by individuals?

a. capital b. consumer c. market d. marginal

9. Which type of good is used to make other goods?

a. capital b. consumer c. market d. marginal

10. A durable good should last at least_____ years.

a. 10 b. 15 c. 3 d. 5

11. A non-durable good will last less than _____ years.

a. 1 b. 3 c. 2 d. none are correct

12. This means that productive resources are being used efficiently.

a. specialization b. marginal c. productivity d. consumption

13. This means using productive resources to do what they are the best at.

a. specialization b. utility c. value d. productivity

14. Economic __________ shows the impact of 1 part of the economy on another.

a. independence b. dependence c. semi dependence d. interdependence

15. A location where buyers and sellers deal in economic products is called?

a. merger b. market c. bank d. quota

16. This type of economy is based on custom.

a. command b. traditional c. market d. socialist

17. This type of economy has the govt making all decisions.

a. command b. traditional c. market d. socialist

18. This type of economy allows people and business to make decisions.

a. command b. traditional c. market d. socialist

19. This requires sellers to attract customers, make a profit and lower prices

a. corporation b. consumer c. commodity d. competition

20. __________ sovereignty refers to the power that buyers hold in our economy

a. corporation b. consumer c. commodity d. competition

CHAPTERS 3-6

21. A sole proprietorship is owned by …

a. 3 b. 2 c. 4 d. 1

22. Partnerships are owned by at least ______ people.

a. 3 b. 2 c. 4 d. 10

23. ________ is a type of business that is regarded by law as a separate legal entity.

a. conglomerate b. merger c. corporation d. partnership

24. When 2 or more businesses join to create a new business it is called?

a. conglomerate b. merger c. corporation d. partnership

25. _______ merger refers to businesses joining together that offer the same product.

a. parallel b. vertical c. horizontal d. conglomerate

26. _______ merger refers to businesses in different stages of production joining.

a. parallel b. vertical c. horizontal d. conglomerate

27. In order to qualify as a conglomerate a firm must own at least____ businesses.

a. 2 b. 4 c. 3 d. 5

28. _______ economics is the study of small units in the economy.

a. macro b. international c. micro d. supply

29. Demand includes all of the following except?

a. desire b. ability c. willingness d. need

30. The law of demand states that as price increases demand will?

a. increase b. decrease c. remain constant d. not be impacted

31. Demand elasticity shows how demand changes b/c of a change in _______.

a. supply b. labor c. mergers d. price.

32. The ability and willingness to offer products for sale at a variety of prices.

a. supply b. demand c. cost d. value

33. In the law of supply high prices will result in _________ quantity for sale.

a. less b. the same c. more d. equal amounts

34. The elasticity of supply shows how supply is impacted by ___________.

a. labor b. materials c. price d. demand

35. The theory of production shows the relationship between the 4 factors of prod. &

a. input b. labor c. cost d. output

36. In this production period the only input that can change is labor.

a. long run b. home run c. chicken run d. short run

37. In this production period all inputs can change.

a. long run b. home run c. chicken run d. short run

38. _______ costs exist even when nothing is being produced.

a. total b. marginal c. fixed d. variable

39. _______ costs will change along with production.

a. total b. marginal c. fixed d. variable

40. _______ cost are associated with extra production.

a. total b. marginal c. fixed d. variable

41. The law of variable proportions states that output will change w/ any change of ?

a. cost b. materials c. input d. demand

CHAPTERS 6-8

42. Economic _____ help predict future economic behavior based on past events.

a. theories b. models c. plans d. ideas

43. _________ equilibrium means that supply is equal to demand .

a. supplier b. price c. market d. surplus

44. When supply is greater than demand you have _________ .

a. increase b. surplus c. decrease d. shortage

45. When demand is greater than supply you have ________ .

a. increase b. surplus c. decrease d. shortage

46. Equilibrium _____ leaves neither a surplus or a shortage.

a. supply b. demand c. cost d. price

47. Selling a product at a loss to attract customers is called ?

a. discount b. loss leader c. reduction d. sale

48. The legal limit that can be charged for a product is called ?

a. profit b. price ceiling c. gross d. net

49. The minimum wage is an example of ?

a. poverty b. employment c. price floor d. unemployment

50. Market structure shows the level of _____ in a given industry.

a. employment b. wages c. labor d. competition

Practice worksheet # 3 EOCT

CHAPTERS 6-8

51. _____ competition features a large # of indep. and informed buyers and sellers.

a. oligopoly b. pure c. monopolistic d. non price

52. ______ competition is similar to pure comp., except products are not identical.

a. oligopoly b. pure c. monopolistic d. non price

53.______ competition uses advertising to increase sales.

a. oligopoly b. pure c. monopolistic d. non price

54. _______ is a type of competition that has a few large sellers of a product.

a. oligopoly b. pure c. monopolistic d. non price

55. Collusion is when 2 companies agree to fix their _____.

a. labor b. production c. price d. merger

56. ________ is defined as having only 1 seller of a product w/ no close substitutes.

a. competition b. monopoly c. oligopoly d. market structure

57. ________ is an economic event that impacts an uninvolved third party.

a. mediation b. arbitration c. equities d. externality

58. _______ economics deals with large units in the economy.

a. supply b. demand c. micro d. macro

59. Collective bargaining involves a meeting between management and ______ .

a. owners b. government c. labor d. corporations

60. Mediation and arbitration both involve the use of a _______ to settle a dispute.

a. 2^nd party b. 3^rd party c. 4^th party d. 5^th party

61. Which of the following is not a category of labor.

a. skilled b. unskilled c. semi skilled d. employed

CHAPTERS 9-14

62. This is tax on socially undesirable products.

a. progressive b. incidence c. property d. sin

63. This is a tax on land and buildings.

a. progressive b. incidence c. property d. sin

64. This requires those w/ higher incomes to pay a higher % in taxes.

a. progressive b. incidence c. property d. sin

65. This shows who actually pays a tax.

a. progressive b. incidence c. property d. sin

66. Which of the following is not an example of a transfer payment?

a. schools b. social security c. subsidies d. grant in aid

67. _______ spending means that the govt spends more than it collects in taxes.

a. govt b. deficit c. tax d. budget

68. _______ money has a alternative use as a product.

a. fiat b. barter c. commodity d. paper

69. Between 1900-1934 people could exchange paper currency for ______.

a. silver b. stocks c. gold d. all 3

70. This was established in 1913 to standardize banks and currency.

a. National bank b. National reserve c. Federal reserve d. Federal bank

71. The most important function of the Federal Reserve is to set ________.

a. savings rates b. wage rates c. percentage rates d. interest rates

72. These are available b/c of a lack of consumption.

a. assets b. liabilities c. savings d. stocks

73. Financial ______ include the income and property of a borrower.

a. assets b. liabilities c. savings d. stocks

74. Equities are the same thing as _______.

a. assets b. liabilities c. savings d. stocks

75. This institution is also known as wall street.

a. S&P 500 b. NYSE c. NASDAQ d. DOW-JONES

76. This institution provides information on over the counter stocks.

a. S&P 500 b. NYSE c. NASDAQ d. DOW-JONES

77. This institution is the most popular measure of stock performance.

a. S&P 500 b. NYSE c. NASDAQ d. DOW –JONES

78. This institution reports on stocks from all exchanges.

a. S&P 500 b. NYSE c. NASDAQ d. DOW-JONES

79. This measures the output of all goods and services inside a country w/ in a year.

a. NNP b. GNP c. GDP d. OPP

80. Products that are used to make other products are called ______ products.

a. secondhand b. production c. intermediate d. factory

81. This is a measure of the performance of all American owned companies.

a. NNP b. GNP c. GDP d. OPP

CHAPTERS 15-19

82. Real ___ per capita shows the $ amount produced for all in the economy.

a. NNP b. GNP c. GDP d. OPP

83. This phase of the business cycle shows economic decline of at least 6 months.

a. peak b. trough c. recession d. depression

84. This is a severe form of a recession.

a. peak b. trough c. expansion d. depression

85. Which of the following is not a type of unemployment.

a. seasonal b. peak c. frictional d. cyclical e. technological

86. This is a general rise in the level of prices.

a. inflammation b. infection c. inflation d. indwelt

87. This is a general decrease in the level of prices.

a. defection b. deflation c. detection d. dejection

88. Stagflation is a combination of no economic growth and ______.

a. deflation b. expansion c. inflation d. contraction

89. The misery index is a combination of inflation and _______ rates.

a. interest b. employment c. unemployment d. wage

90. When a country can produce more of a product b/c of its resources.

a. quota b. comparative advantage c. tariff d. absolute advantage

91. When a country can produce more of a product b/c of efficiency.

a. quota b. comparative advantage c. tariff d. absolute advantage

92. This is a tax on imports.

a. quota b. comparative advantage c. tariff d. absolute advantage

93. Exchange rates deal with ______ .

a. stocks b. bonds c. currency d. tariffs

94. This economic system allows for private ownership of the factors of production.

a. communism b. capitalism c. socialism d. both a & c

95. This economic system allows the govt to own some of the factors of production.

a. communism b. capitalism c. socialism d. b & c

96. This economic system features the govt owning all of the factors of production.

a. communism b. capitalism c. socialism d. a & b