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Economics_Final

Multiple Choice (30 Points)
Identify the choice that best completes the statement or answers the question.
 

 1. 

Which of the following is least likely to be considered a want
a.
CD Player
c.
TV
b.
Snowboard
d.
Car
 

 2. 

This occurs when producers can’t or won’t offer goods at current prices.
a.
Shortage
c.
Scarcity
b.
Market
d.
Competition
 

 3. 

Which of the following is not a factor of prodution?
a.
Capital
c.
Labor
b.
Partnership
d.
Land
 

 4. 

Which of the following best describes a command economy?
a.
Free Enterprise
c.
Tradition
b.
Choice
d.
Communism
 

 5. 

Which best describes a market economy?
a.
Tribal
c.
Supply vs. Demand
b.
Barter
d.
Government Control
 

 6. 

The belief that government should stay out of business is called
a.
Socialism
c.
Laissez Faire
b.
Communism
d.
Private Property
 

 7. 

The right of people to decide what and when to buy and sell is called
a.
Competition
c.
Consumer Role
b.
Profit Motive
d.
Voluntary Exchange
 

 8. 

The total value of all goods produced by a nation’s economy is
a.
Gross Domestic Product
c.
Want
b.
Standard of Living
d.
Need
 

 9. 

Which of the following is not an In Kind benefit?
a.
Susidized housing
c.
Food give-aways
b.
Food Stamps
d.
State Parks
 

 10. 

A graphic representation of a demand schedule is called a
a.
Demand curve
c.
Supply curve
b.
Centeris Paribus
d.
Law of demand
 

 11. 

A good that consumers demand more of when their income increases is
a.
In Kind Good
c.
Centeris Paribus
b.
Normal Good
d.
Inferior Good
 

 12. 

The safest of the following investments is
a.
Junk Bonds
c.
Real Estate
b.
Stock
d.
Certificate of Deposit
 

 13. 

The point at which supply and demand meet is called
a.
Equilibrium
c.
Price Ceiling
b.
Excess Supply
d.
Excess Demand
 

 14. 

Which of the following is not a characteristic of good money
a.
Durability
c.
Protability
b.
Unlimited amounts
d.
Divisibility
 

 15. 

If you don’t qualify to pay taxes you are said to be
a.
Tax Free
c.
Exempt
b.
Poor
d.
Wealthy
 

Matching (50 Points)
 
 
a.
Study of decision making habits of an entire economy
n.
Price goes up, supply goes up
b.
What you give up by choosing one course of action
o.
desired but not needed for survival
c.
the private or coporate ownership of capital goods
p.
Study of decision making habits  of small units like businesses
d.
Price goes down, demand goes up
q.
Economy that relies on custom and tradition
e.
method used by a society to produce and distribute goods
r.
factors that can change
f.
goods used in place of one another
s.
Things such as food, water, and shelter
g.
the struggle amongst producers for the dollars of consumers
t.
Two goods that are used together
h.
Amount of goods available
u.
Economy in which government makes all economic decisions
i.
Economic side effect that benefits or hurts others
v.
If price goes up people still buy the same amount of products
j.
Level of economic prosperity within a society
w.
limited quantities of resources to meet unlimited wants
k.
If price goes up people buy less of a product
x.
Desire to own something and the ability to buy it
l.
Study of how people satisfy their wants and needs with resources
y.
A commitment to the value of work and purposeful activity
m.
Economy that relies on supply and demand
 

 16. 

Economics
 

 17. 

Want
 

 18. 

Need
 

 19. 

Opportunity Cost
 

 20. 

Scarcity
 

 21. 

Economic System
 

 22. 

Standard of Living
 

 23. 

Traditional economy
 

 24. 

Market economy
 

 25. 

Command economy
 

 26. 

Competition
 

 27. 

Free Enterprise
 

 28. 

Macro economics
 

 29. 

Micro economics
 

 30. 

Work ethic
 

 31. 

Externalities
 

 32. 

Demand
 

 33. 

Law of Demand
 

 34. 

Supply
 

 35. 

Law of Supply
 

 36. 

Complement goods
 

 37. 

Substitute goods
 

 38. 

Elastic
 

 39. 

Inelastic
 

 40. 

Variable
 
 
Identify the following Economic Systems below (10 Points)
a.
Traditional Economy
c.
Command Economy
b.
Market Economy
 

 41. 

U.S.A.
 

 42. 

Use barter system
 

 43. 

Tribal
 

 44. 

Communism
 

 45. 

Greatest variety of goods and services
 
 
Identify the following as Compliment or Sustitute Goods (10 Points)
a.
Compliment Goods
b.
Substitute Goods
 

 46. 

Skis and snowboards
 

 47. 

Coke and Pepsi
 

 48. 

Skis and ski boots
 

 49. 

Wheels and tires
 

 50. 

Ford truck or Dodge truck
 
 
Identify the following products as Elastic or Inelastic (10 Points)
a.
Elastic
b.
Inelastic
 

 51. 

Gasoline
 

 52. 

Going out to dinner
 

 53. 

Gum
 

 54. 

Demand stays constant when price changes
 

 55. 

Demand changes drastically when price changes
 
 
Match the following Liquidity (10 points)
a.
Liquid
b.
Not liquid
 

 56. 

Real Estate
 

 57. 

Savings Account
 

 58. 

Stock
 

 59. 

Retirement Fund
 

 60. 

Checking Account
 
 
Match the following Investments (10 points)
a.
Safe Investment
b.
Risky Investment
 

 61. 

CD
 

 62. 

Junk Bond
 

 63. 

Savings Bond
 

 64. 

Stock
 

 65. 

Futures
 
 
Matching (50 points)
a.
Denominations of bills produced by the Federal Reserve
n.
FICA tax program that provides a retirement fund
b.
Quantity supplied is greater than quantity demanded
o.
Direct exchange of goods for other goods
c.
Loaning $ to the gov’t or a business. Pay back plus interest
p.
Quantity demanded is more than quantity supplied
d.
FICA tax program that aids with health care
q.
Business that uses the name of a major business chain
e.
Conducting business illegally by breaking bov’t regulations
r.
Naional Bank and banking system
f.
Insures $ in bank accounts up to $100,000
s.
Ownership in a corporation. You buy shares of them
g.
Business shared by two or more people
t.
An institution for receiving, keeping, and lending money
h.
Anything that serves as a medium of exchange
u.
How easily an investment can be turned into cash
i.
Saving $ for the future
v.
Business owned by a single individual
j.
Tax increase the more money one makes
w.
Point where supply and demand meet at a price
k.
When quantity supplied doesn’t equal quantity demanded
x.
Required payment to a local, state, or federal government
l.
Documents that prove you invested. ex =  stock shares
y.
System where paper $ is backed by the same value of gold
m.
Minimum amount an employer must pay. Price Floor
 

 66. 

Equilibrium
 

 67. 

Disequilibrium
 

 68. 

Excess demand
 

 69. 

Excess supply
 

 70. 

Minimum wage
 

 71. 

Black market
 

 72. 

Money
 

 73. 

Barter System
 

 74. 

Bank
 

 75. 

Gold standard
 

 76. 

Federal Reserve System
 

 77. 

Federal Reserve Notes
 

 78. 

FDIC
 

 79. 

Liquidity
 

 80. 

Investment
 

 81. 

Assets
 

 82. 

Stock
 

 83. 

Bonds
 

 84. 

Sole Proprietorship
 

 85. 

Partnership
 

 86. 

Franchise
 

 87. 

Tax
 

 88. 

Progressive tax system
 

 89. 

Social Security
 

 90. 

Medicare
 

Essay - Answer any 4 you choose. 5 points each. (20 Points total)
 

 91. 

What is opportunity cost? List two opportunity costs of a high school student having a job. List two opportunity costs associated with playing high school athletics.
 

 92. 

What is monopoly and why is it bad for consumers? What happens in terms of supply and demand when a monopoly exists?
 

 93. 

How would you rate a brick as a form of good money? What are five characteristics of good money that it lacks?
 

 94. 

What are three things the Federal Reserve System is responsible for? What is the FDIC? Why is it important that your accounts be FDIC insured?
 

 95. 

What is a franchise? Explain two advantages for both the franchisor and the franchisee when opening a franchise.
 

 96. 

Explain the relationship between risk and return as well as liquidity and return when it comes to financial investments. Give three examples of investments listing their level of liquidity and risk.
 

 97. 

Name the three types of economic systems that exist in the world today giving the type of country they normally exist in. How could you determine which system is the best for the consumer. Make a judgment about which system you’d prefer.
 



 
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