*Economics Post-test Final 2025-2026

Last updated 4 months ago

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The situation in which unlimited wants exceed the limited resources available to fulfill those wants

Tradeoff

Market

Scarcity

Equity

The highest-valued alternative that must be given up to engage in an activity

Opportunity Cost

Factors of production

Innovation

Scarcity

________________ is the study of how people make choices to get what they want or need.

Personal Finance

Capitalism

Supply and Demand

Economics

What is the additional cost associated by producing one additional unit of product?

Fixed Cost

Marginal Cost

Explicit Cost

Average Cost

Taylor Swift is on tour! Tickets have almost sold out. Since supply is low, what will likely happen to the price?

Increase

Decrease

Tickets will stop selling

Remain the same

In cost/ benefit analysis (or marginal analysis), when does adding an additional unit pay off?

Marginal costs exceed marginal benefits.

Marginal benefits don't exist.

Marginal benefits equal or exceed marginal costs.

When your total revenue increases. 

Trees, soil, water, and coal are all examples of

Conservation

Recycling

Fossil fuels

Natural resources

How do you satisfy your unlimited wants in a world of limited resources?

By stealing

By setting a budget

By making more money

By making choices

Which of the following is a market structure with only a single seller of a particular product?

Demand

Monopoly

Supply

Oligopoly

An entrepreneur is ....

Someone who takes over an existing business

Someone who starts a new business

Someone who does not want to work

Someone who works for a new business

The study of behavior of individual households, firms, and markets is known as

Macroeconomics

Social Studies

Microeconomics

Economics

The study of the economy as a whole is known as

Economics

Microeconomics

Macroeconomics

Home Economics

"Country X" has an economic system in which individual citizens, businesses, and the government share responsibility in answering economic questions. This is an example of a:

Command economy

Traditional economy

Mixed economy

Market economy

What is the opportunity cost of a company moving from point C to point B on their Production Possibilities Curve?

40 TVs

20 radios

15 TVs

50 radios

When the supply of a product or service increases and the demand stays the same, the price of the product will typically do what?

Rise

Stay the same

Consumer

Fall

When the quantity demanded for a product or service is more than the quantity supplied, this causes what?

Surplus

Consumer

Shortage

Equilibrium

The point where quantity supplied and quantity demanded are equal is?

Surplus

Demand

Equilibrium

Product

A new toy has become extremely popular with children. Parents have rushed out to buy this new toy, causing a shortage. What will happen to the price of this toy due to the shortage.

Equilibrium

Rise

Remain the same

Fall

What does this curve represent?

Equilibrium

Demand

Surplus

Supply

The graph represents a

Increase in demand

Decrease in demand

Change in quantity supplied

Change in quantity demanded

If a price floor was set at $320, what is the quantity demanded?

40

60

80

20

This image best represents:

An increase in quantity demanded

An increase in demand

A decrease in demand

A decrease in quantity demanded

Mr. Doe is liable for all the debts of his company. He figures that this is a reasonable tradeoff because he also has full control of his company. Mr. Doe has which type of business organization?

sole proprietorship

monopoly

corporation

perfect competition

A rise in the general price levels of products is known as:

Deflation

Cost-Push Phenomenon

Hyperinflation

Inflation

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

recession

demand

inflation

unemployment

Which of the following would be considered unemployed?

A recent college graduate looking for a job

A Stay-at-home parent

A retired grandmother

A 14-year-old student who babysits for extra cash

What is the name of the economic visual aid?

The GDP Cycle

The Growth and Contraction Cycle

The Business Cycle

The Economic Cycle

A cashier is hired on at Spirit Halloween for the fall, and is told the job will end in November. This means that after November, the cashier will experience ______ unemployment.

Cyclical

Frictional

Seasonal

Structural

The economy is showing an increase in unemployment. Because of this, the Federal Reserve has decided to decrease interest rates. According to this information, which stage business cycle pictured above would this economy be in?

Phase 1

Phase 3

Phase 4

Phase 2

Cars, TVs, and headphones (made in the U.S. and bought in the U.S.) belong in which part of the GDP formula? GDP = C+I+G+(X-M)

Net imports

Investment Expenditures

Government Expenditures

Consumption Expenditures

What does M represent in calculating net exports? X-M

Imports

Investment 

Exports

Materials

What type of GDP is calculated with the current year's prices and not adjusted for inflation?

Nominal GDP

GDP per capita

Real GDP

Inflation

Monetary Policy is the Federal Reserve Systems attempt to...

control the state governments' spending

control the Federal government's interest rates

control the Federal Government's debt

control the money supply to influence the economy

The Federal Individual Income tax is what type of tax structure?

Proportional Tax

Progressive Tax

Capital Gains Tax

Regressive Tax

Each year the federal government spends more money than it collects in tax revenue. This results in a

national surplus

national debt

budget deficit

budget surplus

Which two government programs make up the greatest share of mandatory spending?

Social Security and Medicare

Medicaid and Medicare

Education and Social Security

National Defense and Medicaid

FICA taxes are taken from a person's

inheritance.

property.

wages, but not tips if you work in a service industry.

wages.

The ability of one person or nation to produce more of a good than another person or nation.

Absolute Advantage

Comparative Advantage

Exports

Protectionism

When a nation imports more than it exports, economists say it has which of the following?

A national difference

A balance of trade

A trade surplus

A trade deficit

Pictured below is a my paycheck. I want to know how much I have made this year, after taxes and deductions. What is my year-to-date net pay? Type the answer in the exact format below show on the paycheck. Example: 9,999.99

The situation in which unlimited wants exceed the limited resources available to fulfill those wants

Tradeoff

Market

Scarcity

Equity

The highest-valued alternative that must be given up to engage in an activity

Opportunity Cost

Factors of production

Innovation

Scarcity

________________ is the study of how people make choices to get what they want or need.

Personal Finance

Capitalism

Supply and Demand

Economics

What is the additional cost associated by producing one additional unit of product?

Fixed Cost

Marginal Cost

Explicit Cost

Average Cost

Taylor Swift is on tour! Tickets have almost sold out. Since supply is low, what will likely happen to the price?

Increase

Decrease

Tickets will stop selling

Remain the same

In cost/ benefit analysis (or marginal analysis), when does adding an additional unit pay off?

Marginal costs exceed marginal benefits.

Marginal benefits don't exist.

Marginal benefits equal or exceed marginal costs.

When your total revenue increases. 

Trees, soil, water, and coal are all examples of

Conservation

Recycling

Fossil fuels

Natural resources

How do you satisfy your unlimited wants in a world of limited resources?

By stealing

By setting a budget

By making more money

By making choices

Which of the following is a market structure with only a single seller of a particular product?

Demand

Monopoly

Supply

Oligopoly

An entrepreneur is ....

Someone who takes over an existing business

Someone who starts a new business

Someone who does not want to work

Someone who works for a new business

The study of behavior of individual households, firms, and markets is known as

Macroeconomics

Social Studies

Microeconomics

Economics

The study of the economy as a whole is known as

Economics

Microeconomics

Macroeconomics

Home Economics

"Country X" has an economic system in which individual citizens, businesses, and the government share responsibility in answering economic questions. This is an example of a:

Command economy

Traditional economy

Mixed economy

Market economy

What is the opportunity cost of a company moving from point C to point B on their Production Possibilities Curve? 

40 TVs

20 radios

15 TVs

50 radios

When the supply of a product or service increases and the demand stays the same, the price of the product will typically do what?

Rise

Stay the same

Consumer

Fall

When the quantity demanded for a product or service is more than the quantity supplied, this causes what?

Surplus

Consumer

Shortage

Equilibrium

The point where quantity supplied and quantity demanded are equal is?

Surplus

Demand

Equilibrium

Product

A new toy has become extremely popular with children.  Parents have rushed out to buy this new toy, causing a shortage.  What will happen to the price of this toy due to the shortage.

Equilibrium

Rise

Remain the same

Fall

What does this curve represent?

Equilibrium

Demand

Surplus

Supply

The graph represents a

Increase in demand

Decrease in demand

Change in quantity supplied

Change in quantity demanded

If a price floor was set at $320, what is the quantity demanded?

40

60

80

20

This image best represents:

An increase in quantity demanded

An increase in demand

A decrease in demand

A decrease in quantity demanded

Mr. Doe is liable for all the debts of his company. He figures that this is a reasonable tradeoff because he also has full control of his company.  Mr. Doe has which type of business organization?

sole proprietorship

monopoly

corporation

perfect competition

A rise in the general price levels of products is known as:

Deflation

Cost-Push Phenomenon

Hyperinflation

Inflation

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

recession

demand

inflation

unemployment

Which of the following would be considered unemployed?

A recent college graduate looking for a job

A Stay-at-home parent

A retired grandmother

A 14-year-old student who babysits for extra cash

What is the name of the economic visual aid?

The GDP Cycle

The Growth and Contraction Cycle

The Business Cycle

The Economic Cycle

A cashier is hired on at Spirit Halloween for the fall, and is told the job will end in November. This means that after November, the cashier will experience  ______ unemployment.

Cyclical

Frictional

Seasonal

Structural

The economy is showing an increase in unemployment.  Because of this, the Federal Reserve has decided to decrease interest rates.  According to this information, which stage business cycle pictured above would this economy be in?

Phase 1

Phase 3

Phase 4

Phase 2

Cars, TVs, and headphones (made in the U.S. and bought in the U.S.) belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

Net imports

Investment Expenditures

Government Expenditures

Consumption Expenditures

What does M represent in calculating net exports?
X-M

Imports

Investment 

Exports

Materials

What type of GDP is calculated with the current year's prices and not adjusted for inflation?

Nominal GDP

GDP per capita

Real GDP

Inflation

Monetary Policy is the Federal Reserve Systems attempt to...

control the state governments' spending

control the Federal government's interest rates

control the Federal Government's debt

control the money supply to influence the economy

The Federal Individual Income tax is what type of tax structure?

Proportional Tax

Progressive Tax

Capital Gains Tax

Regressive Tax

Each year the federal government spends more money than it collects in tax revenue. This results in a

national surplus

national debt

budget deficit

budget surplus

Which two government programs make up the greatest share of mandatory spending?

Social Security and Medicare

Medicaid and Medicare

Education and Social Security

National Defense and Medicaid

FICA taxes are taken from a person's

inheritance.

property.

wages, but not tips if you work in a service industry.

wages.

The ability of one person or nation to produce more of a good than another person or nation.

Absolute Advantage

Comparative Advantage

Exports

Protectionism

When a nation imports more than it exports, economists say it has which of the following?

A national difference

A balance of trade

A trade surplus

A trade deficit

An exchange rate is used to

determine the price of one country's currency in terms of another country's currency.

promote the argument supporting free trade.

promote the use of subsidies on foreign goods.

determine the price of one country's imports in terms of another country's imports.

Only producing certain goods instead of everything you need is known as

Specialization

Balance of trade

Importing

Absolute Advantage

According to the law of comparative advantage, a country should

Specialize and export goods with the lowest average cost

Specialize and export goods with the lowest production cost

Specialize and export goods with the highest opportunity cost

Specialize and export goods with the lowest opportunity cost

America can produce more DVDs per labor hour than can any other country in the world. What is this an example of? 

Absolute advantage

Comparative advantage

Trade Deficit

The cost of borrowed money, usually expressed as a percentage.

Purches

Scarce

Savings plan

Interest

401(k), Traditional IRA, and Roth IRA are all examples of a __________ account.

Stock

College Savings

Retirement

Low Interest

Michelle wants to invest $1,000 to save for emergencies and for her future.  She doesn't know much about investing and plans on seeking help from a professional.  She also wants to put it into an investment that will earn her a high return, but be a relatively safe, low-risk investment.  She doesn't plan to spend the money in this investment, but she does want the investment to have some liquidity to it in case she needs access to the funds in an emergency.  She also wants to make sure that her investment will be diversified.  What investment option would be the be best for her to meet her goal of high returns, diversification, liquidity, and low risk.

Mutual Funds

Real-Estate

Bonds

Savings Account

Certificate of Deposit

This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.

APR

Compound interest

Emergency Fund

Debt

What is a credit score?

A three-digit score that tells lenders how much money you make each year.

A five-digit numerical rating that reflects how likely you are to repay your debt

A three-digit numerical rating that reflects how likely you are to repay your debt.

A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

Which of the following investments is an investment that earns fixed interest for a specific time period?  You can reinvest your interest back into this investment.

Checking Account

Calculated Dividend

Bond

Certificate of Deposit

Which insurance helps provide protection from financial loss from medical care or routine health visits? 

life insurance

liability insurance

health insurance

disability insurance

Why do banks and other financial institutions require collateral for loans?

to assess the trustworthiness of the customer

to make profit

to reduce the risk of lending

to raise needed funds

What is the best way to avoid credit card fees associated with using a credit card?

Use it for cash advances only.

Only use the card except for emergencies.

Make sure that you use the card at least once a month.

Pay off the total balance on time each month.

Local governments generally receive their highest amounts of revenue from

property taxes.

driver’s license fees.

excise taxes.

federal government grants.

Which of these would have the BIGGEST impact your monthly car insurance premium?

your deductible

your job

your income

your education

The price of athletic shoes has increased due to market forces.  A combination of things have contributed the increased price of the shoes.  According to the forces of supply and demand, select which of the following could cause this increase in the price of athletic shoes?  Choose 5.

Many shoe companies shut down due to a recession

The price of leather increases

Summer is approaching, and consumers shift to buying sandals instead of athletic shoes

Consumer incomes increase

Running becomes a popular hobby

The price of leather decreases

The government puts a tax on the producers of running shoes

A recession has hit the United States.  In an effort to decrease unemployment, the Government and the Federal Reserve have decided to take action.
Drag the type of policy that the Government should use, and drag it to the box that says Type of Policy the Government should enact and actions it should take..  Then, select the actions that the Government could enact to achieve that type of policy.
Then, Drag the type of policy that the Federal Reserve should use, and drag it to the box that says Type of Policy the Federal Reserve should enact and actions it should take.  Then, select the actions that the Federal Reserve could enact to achieve that type of policy.
Then, select one action that the Government could use to implement its policy, and one action the Federal Reserve could use to implement its policy.  You should Select 5 answers TOTAL.

The Government should raise taxes

The Government should increase spending on things like parks and interstates

The Federal Reserve should raise Taxes

The Federal Reserve should decrease the money supply

The Government should use Contractionary Fiscal Policy

The Federal Reserve should increase the money supply

The Government should increase the money supply

The Federal Reserve should use Tight/Contractionary Monetary Policy

The Government should lower taxes

The Government should use Expansionary Fiscal Policy

The Federal Reserve Should use Easy/Expansionary Monetary Policy

The Federal Reserve should decrease spending on parks and interstates

Type of Policy the Government should enact and actions it should take.

Type of Policy the Federal Reserve should enact and actions it should take.

Select all that could have caused the aggregate demand curve shift from AD1 to AD2.  Choose 2.

The government decreases spending on projects and public works

The government increases the income tax

Consumers are confident about their financial future and begin to spend.

Businesses see possible growth and spend money on capital equipment

Due to natural disaster, the price of resources used in production increase

The Federal reserve increases interest rates

J.R. is looking to get a $100,000 loan for a house.  His main concern is to pay off the loan as fast and cheaply as possible.  Which loan has the best terms for J.R. to achieve this goal, and what would be a drawback to J.R. paying off his loan as quickly as possible?  Select 2.

A 30 Year loan at 2.7% interest

A 15 year loan at 10%

A drawback would be that he will pay more in interest over the course of the loan.

A drawback would he that he will have higher monthly payments

A drawback would be that he will have lower monthly payments

A 30 year loan at 10%

A 15 Year loan at 3% interest

The price of peanut butter has increased significantly.  This has an effect on the market for other products as well.  Which market below shows how an increase in the price of peanut butter would affect the market for Jelly?  

C

A

D

B