Economics Test

Last updated about 6 years ago

34 questions

1

2

1

2

1

8

4

Library

Economics Test

Last updated about 6 years ago

34 questions

1

2

1

2

1

8

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.

4

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)

4

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)

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

Infrastructure 

Opening a McDonald's 

Investing in stock 

None of these 

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

Infrastructure 

Opening a McDonald's 

Investing in stock 

None of these 

What are some effects of higher taxes?

Less consumer spending 

Higher demand for sports cars 

More consumer spending 

Lower unemployment 

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

Socialism 

Communism 

Capitalism 

Both a and c 

In Communism, what businesses are owned by the government?

Basic 

Non-basic 

Basic and non-basic 

none of the above 

How might businesses encourage workers to become more efficient?

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

Nothing 

Pay double next time 

Foreclosure 

None of the above 

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

Decrease the price of a good 

Increase the price of a good 

No change in the price 

Lower demand of the good 

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

Capitalism 

Communism 

Socialism 

b and c 

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

Interest

Supply 

Cost of living 

Infrastructure 

Deflation may occur ...

If there is high demand 

If there is less money in the economy 

If there is more money in the economy 

If there is a low supply 

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

Outsource 

Resource 

Sign a contract 

Employ more people 

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

The employees were bad at their jobs 

Another company wants to hire the employees 

The company couldn't afford to pay their employees 

The employees were overqualified for their jobs 

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

That you have veto power (ability to say "no" to business ideas) over the company's decisions 

That you have to supply money for the company's purchase 

That you share in the money the company makes or loses 

That you have a job with the company 

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

The amount of money its executives earn 

The number of people who buy / own its stock 

The number of employees who work there 

The amount of money the company spends on advertisement 

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

By requiring construction workers to borrow equipment from other companies 

By providing constructions workers with an income 

By selling leftover materials to construction workers 

By creating homes for the construction workers to pay rent 

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

It raises taxes and lowers interest rates 

It lowers taxes and raises interest rates 

It lowers both taxes and interest rates 

It raises both taxes and interest rates 

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

A school teacher 

The owner of a small business 

A millionaire 

A student on financial aid 

Which condition would lead to the highest prices?

Low supply, high demand 

High supply, high demand 

High supply, low demand 

Low supply, low demand 

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

A poor, sloppy and inaccurate poster 

A commerical of the company / product with a well known celebrity 

A product that very few people want or use 

Charging consumers twice as much as the product with worth 

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?

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?

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?

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?

Producer

Entertainer

Entreprenuer

Consumer

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 and why?

A basic business because most cat owners need cat babysitting from time to time

A non-basic business because most cat oweners need cat babysitting from time to time

A basic business because cat most owners don't need cat babysitting from time to time

A non-basic business because most cat owners don't need cat babysitting from time to time

How many people want or need a produce or service is: (choose the best answer)

suppy

demand

consumer

quota

The total value of goods and services produced in a country in one year is its gross domestic product (GDP).

True

False

A quota allows someone to specialize in a specific line of work.

True

False

Certification of ownership in a company is:

stocks

stock market

portfolio

contract

What vocabulary word best describes the sentences?
Hank works for the Ford Motor Company. Hank only makes the steering wheels for F150 trucks. He has become very good and quick at making these steering wheels.

Producer

Employment

Specialization

Entrepreneur

What vocabulary word best describes the sentences?
I went to the store last year and toilet paper was $6.99 for 12 rolls. Yesterday, I bought 12 rolls of toilet paper for $10.99

inflation

deflation

interest

investment

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.

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)

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)

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

Infrastructure 

Opening a McDonald's 

Investing in stock 

None of these 

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

Infrastructure 

Opening a McDonald's 

Investing in stock 

None of these 

What are some effects of higher taxes? 

Less consumer spending 

Higher demand for sports cars 

More consumer spending 

Lower unemployment 

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

Socialism 

Communism 

Capitalism 

Both a and c 

In Communism, what businesses are owned by the government? 

Basic 

Non-basic 

Basic and non-basic 

none of the above 

How might businesses encourage workers to become more efficient? 

Specialize 

Set higher quotas for their workers 

Create incentives 

a and b only 

a, b, and c are correct 

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

Nothing 

Pay double next time 

Foreclosure 

None of the above 

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

Decrease the price of a good 

Increase the price of a good 

No change in the price 

Lower demand of the good 

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

Capitalism 

Communism 

Socialism 

b and c 

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

Interest

Supply 

Cost of living 

Infrastructure 

Deflation may occur ... 

If there is high demand 

If there is less money in the economy 

If there is more money in the economy 

If there is a low supply 

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

Outsource 

Resource 

Sign a contract 

Employ more people 

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

The employees were bad at their jobs 

Another company wants to hire the employees 

The company couldn't afford to pay their employees 

The employees were overqualified for their jobs 

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

That you have veto power (ability to say "no" to business ideas) over the company's decisions 

That you have to supply money for the company's purchase 

That you share in the money the company makes or loses 

That you have a job with the company 

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

The amount of money its executives earn 

The number of people who buy / own its stock 

The number of employees who work there 

The amount of money the company spends on advertisement 

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

By requiring construction workers to borrow equipment from other companies 

By providing constructions workers with an income 

By selling leftover materials to construction workers 

By creating homes for the construction workers to pay rent 

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

It raises taxes and lowers interest rates 

It lowers taxes and raises interest rates 

It lowers both taxes and interest rates 

It raises both taxes and interest rates 

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

A school teacher 

The owner of a small business 

A millionaire 

A student on financial aid 

Which condition would lead to the highest prices? 

Low supply, high demand 

High supply, high demand 

High supply, low demand 

Low supply, low demand 

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

A poor, sloppy and inaccurate poster 

A commerical of the company / product with a well known celebrity 

A product that very few people want or use 

Charging consumers twice as much as the product with worth 

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? 

Babysitting cats

Growing plants

Extra money

Soil 

Students taking tests

Small barn

Water pond

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? 

Babysittting cats

Growing Plants

Extra money

Soil

Students taking tests

Small barn

Water pond

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? 

Babysitting cats

Growing Plants

Extra money

Soil

Students taking test

Small barn

Water pond 

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?  

Producer

Entertainer

Entreprenuer

Consumer

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 and why?

A basic business because most cat owners need cat babysitting from time to time

A non-basic business because most cat oweners need cat babysitting from time to time

A basic business because cat most owners don't need cat babysitting from time to time

A non-basic business because most cat owners don't need cat babysitting from time to time

How many people want or need a produce or service is: (choose the best answer)

suppy

demand

consumer

quota

The total value of goods and services produced in a country in one year is its gross domestic product (GDP). 

True

False

A quota allows someone to specialize in a specific line of work.

True

False

Certification of ownership in a company is: 

stocks

stock market

portfolio

contract

What vocabulary word best describes the sentences?
Hank works for the Ford Motor Company. Hank only makes the steering wheels for F150 trucks. He has become very good and quick at making these steering wheels.

Producer

Employment

Specialization

Entrepreneur

What vocabulary word best describes the sentences?
I went to the store last year and toilet paper was $6.99 for 12 rolls. Yesterday, I bought 12 rolls of toilet paper for $10.99

inflation

deflation

interest

investment

Economics Test

Economics Test

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

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: (choose the best answer)

The total value of goods and services produced in a country in one year is its gross domestic product (GDP).

A quota allows someone to specialize in a specific line of work.

Certification of ownership in a company is:

What vocabulary word best describes the sentences?Hank works for the Ford Motor Company. Hank only makes the steering wheels for F150 trucks. He has become very good and quick at making these steering wheels.

What vocabulary word best describes the sentences?I went to the store last year and toilet paper was $6.99 for 12 rolls. Yesterday, I bought 12 rolls of toilet paper for $10.99

What vocabulary word best describes the sentences?
Hank works for the Ford Motor Company. Hank only makes the steering wheels for F150 trucks. He has become very good and quick at making these steering wheels.

What vocabulary word best describes the sentences?
I went to the store last year and toilet paper was $6.99 for 12 rolls. Yesterday, I bought 12 rolls of toilet paper for $10.99