Economics GSE practice questions.
Consumers are now able to buy and download music rather than purchasing music directly from a store.
Which of the following BEST describes the impact this has had on the music industry?
Why is it more efficient to use prices rather than authority (as in a command economy) when allocating scarce resource?
After graduating from high school, Lori took out a loan to help pay for college. Now, five years later, Lori has graduated from college. How might rapid inflation impact Lori as she prepares to pay back her student loan?
On the first day of school, the Student Hub had 100 earbuds for sale at $1 each. At the end of the week, there were 90 earbuds left. The second week, the price of earbuds dropped to $.75 each. At the end of the week, there were 75 earbuds left. The Student Hub continued to lower the price by $.25 each week, and at the end of the fourth week, there were no earbuds left. Which price was the market clearing price?
Examine the image above. Assume that it shows a market for meals from Chick-fil-A. If the incomes of the consumers in this market increase, which of the following will occur?
Having a "buy-one, get one free" sale at a store leads to consumers purchasing more products. This is an example of
Assume that the national debt in 2000 was $6 trillion and in 2019 it was $21 trillion. Which of the following is one reason the national debt increased?
Use the image above to answer the questions.
Dana is very risk-averse, but wants to put $1000 in a savings tool to get a good return. She should choose
Jeremy is willing to take on risk to earn high retuns, but wishes to have a diversified investment. Which investment tool should he select?
In the early 2000s, Chinese officials became concerned that imported poulty was carrying "Avian Flu." As a result, the Chinese government does not allow any foreign poultry to be imported into their country.
Which type of trade barrier is the Chinese government using?
Assume that the US is experiencing high levels of cyclical unemployment. Which of the following will likely result?
A personal budget reflects spending as well as saving. Why?
Why might government choose to regulate monopolies?
Based on the supply and demand model, which of the following would cause a market shortage?
A community in a remote region of South America are farmers. However, their harvest and profit is low because they primarily use minimal labor and have poor tools. What could best increase the standard-of-living for these farmers?
Josh sells his Marvel Comic book collection for $10,000. He purchase a new car.
This shows that money can function as
Why are regressive taxes considered burdensome for low income taxpayers?
New York has an income tax of 5% on all earned income.
Georgia has a tax that ranges from 2-8%, depending on income.
What type of tax does New York have?
In a modern economic system, government entities might respond to market failures. Which of the following is the best example of this?
Which of the following is a way that a modern government protects individual incentives and encourages efficiency and growth?
The workers in the factory above most likely represent
Which would be an appropriate action by the Federal Reserve during a time of rapid inflation?
Which of the following could result from a decision of the Federal Open Market Committee?
Decreased tariffs between the U.S., Mexico, and Canada
Wage increases in all three countries.
Increased trade between all three countries.
Net job gain for all three countries.
This list is most closely associated with.
*Price of related goods (substitutes or complements)
*Income
* Preference
*Expectations of Future Prices
*Number of Consumers
A change in the list above would change
