Featured Quizzes
User Quizzes
Create Quiz
Data and Charts
Badges and Games
About JetPunk
JetPunk Shop
Dark Mode
Test of Economic Knowledge
Rate:
Last updated: July 3, 2022
You have not attempted this quiz yet.
More quiz info >>
| First submitted | July 3, 2022 |
| Times taken | 27 |
| Average score | 82.5% | Report this quiz | Report |
40:00
The quiz is paused. You have remaining.
Scoring
You scored / = %
This beats or equals
% of test takers
also scored 100%
The average score is
Your high score is
Your fastest time is
Keep scrolling down for answers and more stats ...
1.
The economic problem of scarcity means that for individuals, governments, and societies the
costs of producing goods and services are greater than the benefits of having them.
✓
wants for goods and services are greater than the available resources to meet them.
✓
prices of goods and services are greater than the value of consuming them.
✓
supply of goods and services is greater than the demand for them.
✓
2.
One consequence of scarcity is that
products which are plentiful have relatively high prices.
✓
there is full employment of resources.
✓
people have to make choices among alternatives.
✓
the production of goods and services is constant.
✓
3.
The opportunity cost of a decision is the
worst choice that could have been made.
✓
money spent making a choice.
✓
value of the next best alternative not chosen.
✓
total benefit expected from all forgone opportunities.
✓
4.
Which of the following is typically true?
People do not respond to incentives.
✓
Correct choices have no costs.
✓
People’s choices have consequences for the future.
✓
Voluntary trade causes winners and losers.
✓
5.
It will cost Amanda an extra $30 to purchase a warranty for a $400 new camera that she is buying. If Amanda decides to buy the warranty she has concluded that the
benefit of the camera is greater than the benefit of the warranty.
✓
cost of the warranty is greater than its benefit.
✓
benefit of the warranty is greater than its cost.
✓
cost of the camera is greater than the cost of the warranty.
✓
6.
There is little government ownership of farms and businesses in the country of Mala. People may change jobs and start new businesses. The government does not control prices and wages. What type of economy is Mala?
Political economy.
✓
Command economy.
✓
Market economy.
✓
Traditional economy.
✓
7.
Which is true about who gets the goods and services that are produced?
All methods of distributing goods and services will satisfy everyone.
✓
No method of distributing goods and services will satisfy everyone.
✓
Most societies have an equal distribution of goods and services.
✓
All societies use the same method for distributing goods and services.
✓
8.
What is the most likely reason why a business would cut the price of a product it sells?
To reduce the economic profit.
✓
To increase investment in other business operations.
✓
To encourage more people to purchase the product.
✓
To decrease the number of workers.
✓
9.
Expansion of international trade usually
increases worldwide production.
✓
decreases worldwide interdependence.
✓
increases worldwide unemployment.
✓
decreases worldwide living standards.
✓
10.
If a high tariff was placed on steel shipped into the U.S.,
foreigners would buy more goods from the U.S.
✓
U.S. consumers would pay more for steel.
✓
the price of steel would go down.
✓
U.S. reserves of iron ore would last a longer time.
✓
11.
Specialization and trade lead to
fewer choices of goods and services.
✓
fewer exchanges of goods and services.
✓
less economic interdependence.
✓
lower costs of goods and services.
✓
12.
In the United States, prices for most goods and services are determined by the actions of
workers and labor unions.
✓
businesses and the government.
✓
consumers and the government.
✓
businesses and consumers.
✓
13.
Why are diamonds more expensive than water even though water is necessary for life and diamonds are not?
The demand for water is decreasing.
✓
Water is more scarce than diamonds.
✓
The supply of diamonds is increasing.
✓
Diamonds are more scarce than water.
✓
14.
At the end of winter, retail clothing stores still have many winter coats for sale. The retail store owner can eliminate the
surplus by raising the price.
✓
surplus by lowering the price.
✓
shortage by raising the price.
✓
shortage by lowering the price.
✓
15.
A market-clearing price occurs when
quantity demanded equals quantity supplied.
✓
deficits equal surpluses.
✓
total assets equal total liabilities.
✓
shortages equal surpluses.
✓
16.
Chicken and fish are substitutes for each other. If the cost of raising chickens increases, then the price of chicken will
decrease and people will buy less fish.
✓
increase and people will buy less fish.
✓
increase and people will buy more fish.
✓
decrease and people will buy more fish.
✓
17.
If there is a large decrease in demand for corn and no change in supply,
there will be no change in the price of corn.
✓
consumers will pay a higher price for corn.
✓
consumers will pay a lower price for corn.
✓
there will be no change in the amount of corn sold.
✓
18.
The price of DVDs will decrease if the
demand for DVDs increases.
✓
supply of DVDs decreases.
✓
supply of DVDs increases.
✓
demand for DVDs increases and the supply decreases.
✓
19.
There used to be one producer of a good in a market and now there are many competing producers. What is most likely to be the result?
Less service.
✓
Lower product quality.
✓
Less output produced in the market.
✓
Lower product price.
✓
20.
Which is most likely to influence the level of competition in markets?
The number of buyers and sellers.
✓
The market-clearing price of a product.
✓
The size of the government budget.
✓
The amount of wages and salaries.
✓
21.
Banks make most of their profits by charging
lower rates of interest to borrowers than they pay depositors.
✓
higher rates of interest to borrowers than they pay depositors.
✓
fees for using automatic teller machines (ATMs).
✓
fees for advice on investments in stocks.
✓
22.
Jody bought shares of stock in a company. She and the other stockholders voted to elect its board of directors. The company is a
corporation.
✓
partnership.
✓
proprietorship.
✓
collective.
✓
23.
Amy is saving ten percent of her income a month. The money she saved is primarily functioning as a
store of value.
✓
terms of trade.
✓
unit of account.
✓
medium of exchange.
✓
24.
Which one of the following is correct?
It just takes money to produce goods and services.
✓
Money is useful for saving, but not investing.
✓
Trade is more difficult with money compared with barter.
✓
Most nations create their own currency for use as money.
✓
25.
Most wages and salaries in the United States are determined by
savers and investors.
✓
supply and demand.
✓
lawyers and bankers.
✓
imports and exports.
✓
26.
Which will result from an increase in the demand for construction workers?
An increase in the wage of construction workers.
✓
A decrease in the price of housing.
✓
An increase in unemployed construction workers.
✓
A decrease in the supply of housing.
✓
27.
Workers’ wages usually increase when
the supply of workers increases.
✓
businesses face more competition in selling their product.
✓
the unemployment rate increases.
✓
demand for the products they produce increases.
✓
28.
Most entrepreneurs start a new business because they expect to
increase their human capital.
✓
decrease work hours.
✓
earn a profit.
✓
avoid risk.
✓
29.
Advances in technology result in
an increase in prices.
✓
a decrease in wages.
✓
an increase in productivity.
✓
a decrease in output.
✓
30.
What usually causes the standard of living in a country to increase over time?
High tariffs.
✓
Increased output per worker.
✓
Conservation of natural resources.
✓
High taxes.
✓
31.
In what way is a fireworks display a public good?
It causes pollution and noise.
✓
It can be seen by those who do not pay for it.
✓
It requires expenditures for public safety.
✓
It can be provided by several businesses.
✓
32.
A major economic role that government is supposed to perform in a market economy is to
maintain competition.
✓
set wages and salaries.
✓
guarantee profits.
✓
establish production targets.
✓
33.
A sales tax is a tax on
property.
✓
income.
✓
consumption.
✓
investment.
✓
34.
What does the gross domestic product (GDP) measure?
The market value of final goods and services produced in a year.
✓
The wages and salaries paid for productive work done during a year.
✓
The market value of products government buys each year.
✓
The total assets and liabilities of a nation.
✓
35.
When comparing the standard of living in one nation’s economy to another nation’s economy, GDP is typically adjusted in each nation by dividing GDP by a nation’s
inflation rate.
✓
unemployment rate.
✓
square miles.
✓
population.
✓
36.
Inflation is the term used to describe
a general decrease in prices.
✓
a general increase in prices.
✓
a decrease in interest rates.
✓
an increase in interest rates.
✓
37.
Which of the following people would the U.S. government count as unemployed?
A high school graduate who has not yet found a job but continues looking.
✓
A retired scientist who is living on her pension.
✓
A part-time cashier who is unhappy with her wage and looking for a full-time position.
✓
A college student who decides not to work during the school year.
✓
38.
To know if an increase in wages over a period of time has led to an increase in the standard of living, we must also look at changes in
prices on the stock market.
✓
interest rates.
✓
government spending and taxes.
✓
prices of goods and services.
✓
39.
Government spending less than taxes collected during a year is called
a budget surplus.
✓
a budget deficit.
✓
the national debt.
✓
the balanced budget.
✓
40.
The control of the money supply is the main responsibility of the
Internal Revenue Service.
✓
Federal Reserve System.
✓
Federal Trade Commission.
✓
Department of Commerce.
✓
Comments
No comments yet
New and Popular
Save Your Progress
Copyright H Brothers Inc, 2008–2024
Contact Us | Go To Top | View Mobile Site