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Economic Activity Test Review
Economic Activity Test Review
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1
Improvement in equipment & technology will not increase worker productivity.
False
True
2
The total amount of money owed by the federal government is called GDP.
True
False
3
_________________ sets the demand for a product.
Producers
Consumers
4
People on a fixed income will not be affected by high inflation rates.
True
False
5
As price decreases, _____________ increases.
Supply
Demand
6
A person who buys and uses goods/services is called: ____________.
a consumer
a producer
a supplier
an employer
7
Jenny has enough money to buy CD or to go the movies. The choice that Jenny “gives up” is
an opportunity cost
a negative cost
a marginal cost
a positive cost
8
Labor force refers to the number of people who are actually employed,
False
True
9
When the government spends less than what money the bring in, you have a: ______.
budget surplus
budget defict
10
A period of slow economic growth,rising unemployment, and businesses are not producing goods
Prosperity Phase
Recovery Phase
Recession Phase
Depression Phase
11
Refer to table below. At the equilibrium price, the quantity exchanged in this market will be
220
250
245
190
12
What term is used to describe an increase in the general price level?
stagflation
deflation
inflation
monetary policy
13
Which of the following situations would result in a government budget deficit?
The Federal Reserve lends more than it borrows
The Federal Reserve borrows more than it lends.
The government spends the same as it collects intaxes.
The government spends more than it collects intaxes.
14
If there is a large supply of a product, but low demand...businesses are most likely to:
decrease supply
raise the price
lower the price
increase supply
15
If the price of sugar decreases, what would happen to the supply of cookies?
Decrease
Increase
No change
Disappears
16
Which of the following occur during a depression (business cycle)?
High unemployment
High productivity
Increased GDP
Low consumer demand/sales
17
What is the civilian labor workforce?
People 16+ yrs old who are looking but can't find a job
People who are 16 yrs or older who can work
People 18+ yrs old who just don't want to work
People who are 18 or older who can work but can't find a job
18
If the GDP increases year to year, that is usually a sign that an economy is healthy.
True
False
19
One main cause of unemployment is a reduction in demand for goods/services.
False
True
20
When supply and demand are equal, you have a(n)?
fair market
equlibrium
decrease in demand
depression
21
If there is an increase in the supply or demand curve, the curve will:
shift to the left
shift to the top
shift to the bottom
shift to the right
22
In general, what type of economy does the United States have?
Traditional
Market
Transitional
Command
23
Which of the following government actions is likely to stimulate the economy?
Decrease income taxes and decrease governmentspending
Decrease government spending and increaseincomes taxes
Increase government spending and decrease incometaxes
Increase income taxes and increase governmentspending
24
What is GDP?
The total value of all services produced within a given year
The total cost of goods produced within a given year
Total value of all final goods/services produced n a year.
Total value of income received from goods/services in a year
25
Which of these actions would most likely result in a decrease in consumer spending?
Decreasing the interest rate
Decrease in GDP
Increasing government spending
Increasing income taxes
26
What will happen if consumers want to buy more scooters than the store has available for sale?
Profit on scooter sales will be smaller
Stores will make a different model
Manufacturers will stop making it
Price of the scooter will increase
27
Which of the following best completes the "equation" shown?
Equilibrium
Savings
Scarcity
Competition
28
Individuals/organizations that determine what product will be available for sale are called:
producers
consumers
employers
29
The relationship between the price of a good & the quantity that consumers are willing to buy
probabilities cruve
demand curve
supply curve
production curve
30
In the graph above, if the demand curve moves from D
1
to D
2,
what has happened?
increase in demand
decrease in demand
31
Refer to the image below
Mixed
Market
Traditional
Command
