Economics Test

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Read the following story about the factors of production, then answer the questions.

Mr. Zellner loves cats. He loves cats so much he decided to start a cat business in Zellprattski, the town he loved. His business provided a babysitting service for cats during the day. Mr. Zellner owned a small barn where he thought he could start the business and he had some extra money from his birthday. He also had a water pond near the barn that could provide water that they cats could drink. He also grew a catnip garden in the soil near his barn. After the first week, Mr. Zellner was so busy that he decided to hire his students to help his growing business.

What are 2 examples of LAND in the story?

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Mr. Zellner loves cats. He loves cats so much he decided to start a cat business in Zellprattski, the town he loved. His business provided a babysitting service for cats during the day. Mr. Zellner owned a small barn where he thought he could start the business and he had some extra money from his birthday. He also had a water pond near the barn that could provide water that they cats could drink. He also grew a catnip garden in the soil near his barn. After the first week, Mr. Zellner was so busy that he decided to hire his students to help his growing business.

What were 2 examples of CAPITAL in the story?

1

Mr. Zellner loves cats. He loves cats so much he decided to start a cat business in Zellprattski, the town he loved. His business provided a babysitting service for cats during the day. Mr. Zellner owned a small barn where he thought he could start the business and he had some extra money from his birthday. He also had a water pond near the barn that could provide water that they cats could drink. He also grew a catnip garden in the soil near his barn. After the first week, Mr. Zellner was so busy that he decided to hire his students to help his growing business.

What were 2 examples of LABOR in the story?

1

Mr. Zellner loves cats. He loves cats so much he decided to start a cat business in Zellprattski, the town he loved. His business provided a babysitting service for cats during the day. Mr. Zellner owned a small barn where he thought he could start the business and he had some extra money from his birthday. He also had a water pond near the barn that could provide water that they cats could drink. He also grew a catnip garden in the soil near his barn. After the first week, Mr. Zellner was so busy that he decided to hire his students to help his growing business.

What would you call Mr. Zellner in the story, since he ran his own business?

1

Mr. Zellner loves cats. He loves cats so much he decided to start a cat business in Zellprattski, the town he loved. His business provided a babysitting service for cats during the day. Mr. Zellner owned a small barn where he thought he could start the business and he had some extra money from his birthday. He also had a water pond near the barn that could provide water that they cats could drink. He also grew a catnip garden in the soil near his barn. After the first week, Mr. Zellner was so busy that he decided to hire his students to help his growing business.

Did Mr. Zellner start a basic or non-basic business? Justify your answer using at least one sentence.

1

How many people want or need a produce or service is:

1

The total value of goods and services produced in a country in one year is:

1

A target number to be achieved is a:

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Certification of ownership in a company is:

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To pursue a special line of work is known as:

1

A general increase in prices generally caused by an increase in the money supply is:

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Read the story and fill in the blanks with the needed vocabulary word. In the answer section, write the numbers 1-8. Put the correct answer after the corresponding number.

Word Bank: income / shortage / incentive / scarcity / production / cost of living / export / import

Mr. D works all day at the pearl button factory. These buttons were so desireable that they had to _____1 these buttons all of the world. His 2_ allows him to pay his ___3 each month which consisted of his rent, automobile, food, and clothing. Some months, Mr. D can earn an _4__ for making extra buttons. There was one month when there was a _5_ of pearls, so the button factory wasn't able to make any buttons. This caused a _6_ of buttons. So, the company had to 7_ pearls from the South China Sea. This delayed the _8____ of buttons so no buttons could be made for weeks.

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Choose an activity from the list below. Use the vocabulary words in parenthesis to clearly demonstrate your understanding of how these vocabulary words were specifically related to the activity. That may include examples or definitions of the assigned words.

A. Business card (entrepreneur, competition, wants, needs)
B. Inventions (incentive, capital, investment, stocks)
C. Paper chain activity (specialization, efficiency, quota, production)
D. Paper airplane activity (outsourcing, unemployment, production, recession)

1

Choose a DIFFERENT activity from the list below. Use the vocabulary words in parenthesis to clearly demonstrate your understanding of how these vocabulary words were specifically related to the activity. That may include examples or definitions of the assigned words.

A. Business card (entrepreneur, competition, wants, needs)
B. Inventions (incentive, capital, investment, stocks)
C. Paper chain activity (specialization, efficiency, quota, production)
D. Paper airplane activity (outsourcing, unemployment, production, recession)

Economics Test

How many people want or need a produce or service is:

The total value of goods and services produced in a country in one year is:

A target number to be achieved is a:

Certification of ownership in a company is:

To pursue a special line of work is known as:

A general increase in prices generally caused by an increase in the money supply is:

Where is the most likely place that taxes would be spent by the government?

What are some effects of higher taxes?

What economic system is based on private ownership of all businesses?

In Communism, what businesses are owned by the government?

How might businesses encourage workers to become more efficient?

What might result if someone doesn't pay their mortgage for many months?

What would be a result of a shortage of a good?

In which economic system(s) does the government own basic businesses?

Food, shelter, and clothing could be considered ...

Deflation may occur ...

If the production of a good becomes too expensive, what might a business do?

If a company lays off half of its employees during a recession, what can you reasonably conclude?

What does it mean to own a share of stock in a company?

Which factors most influence whether a company's stock price goes up or down?

How does a government-funded construction project stimulate (increase) spending?

How does the government typically handle taxes and interest rates during a recession?

Under a progressive income tax, who would pay the largest proportion of income taxes?

Which condition would lead to the highest prices?

What would likely cause an increase in demand for a product and therefore an incrase of stock prices in Zellprattski?

How many people want or need a produce or service is:

The total value of goods and services produced in a country in one year is:

A target number to be achieved is a:

Certification of ownership in a company is:

To pursue a special line of work is known as:

A general increase in prices generally caused by an increase in the money supply is: