Economics Final Exam Review

Question 1

When you make a choice about something you want, the loss of value of what you did not choose..

Accepted Answer

Opportunity Cost

Question 2

When a car is used to deliver pizzas, it is a...

Accepted Answer

Capital good

Question 3

Full employment means...

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The unemployment rate is about 5%

Question 4

Profits paid to stockholders of corporations are called...

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Dividends

Question 5

A hammer in the hands of a carpenter would be an example of a...

Accepted Answer

Capital good

Question 6

Private property can be owned in which of the following economic systems?

Accepted Answer

Free enterprise

Question 7

A person who leaves a job to look for a better job is an example of...

Accepted Answer

Frictional unemployment

Question 8

A disadvantage of a sole proprietorship is...

Accepted Answer

Lack of longevity

Question 9

In what business organization do two or more people enjoy equal decision making authority?

Accepted Answer

General partnership

Question 10

Economic growth is important because it...

Accepted Answer

All of these

Question 11

Factory workers in 1890 might expect to...

Accepted Answer

All of these

Question 12

A severe recession with high unemployment, acute shortages and excess manufacturing capacity is

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a depression

Question 13

Which of the following describes the collection of individual income taxes?

Accepted Answer

All of these

Question 14

A government's financial plan is called its...

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Budget

Question 15

Two disadvantages that sole proprietorships and partnerships share are lack of longevity and...

Accepted Answer

Unlimited liabilty

Question 16

The number of people in poverty in the US is determined by...

Accepted Answer

Identifying those below the poverty threshold

Question 17

An excise tax is a tax on...

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Products made in foreign countries such as cars

Question 18

Social Security taxes are...

Accepted Answer

used to support old age pensions and Medicare

Question 19

During the Great Depression of the 1930s, the US faced severe...

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Cyclical unemployment

Question 20

The relationship between a worker's education and his or her income level is...

Accepted Answer

Direct

Question 21

The buildings, structures, machinery, and tools used in the production process are called...

Accepted Answer

Capital goods

Question 22

The most common form of business organization in the US...

Accepted Answer

Sole proprietorship

Question 23

The factors of production are...

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Land, labor, capital, and entrepreneurship

Question 24

You deposit $1000 into a savings account and earn 10% interest. The $1000 is the...

Accepted Answer

Principal

Question 25

The government's budget will have a deficit whenever...

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Spending is greater than revenue

Question 26

A general rise in prices is called...

Accepted Answer

Inflation

Question 27

The number of women in the labor force is...

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Increasing

Question 28

What do right-to-work laws prohibit?

Accepted Answer

Mandatory union membership

Question 29

People are forced to make decisions about how to use resources effectively because...

Accepted Answer

resources are limited and wants are unlimited

Question 30

What is the basic problem of economic life?

Accepted Answer

Scarcity

Question 31

The Girl Scouts is an example of a...

Accepted Answer

None of these

Question 32

The individual income tax...

Accepted Answer

All of these

Question 33

All of the following are examples of a federal tax except...

Accepted Answer

Property tax

Question 34

In the US, two-thirds of all people 16 years of age or older are...

Accepted Answer

Members of the civilian labor force

Question 35

Demand-Pull, Cost-Push, and Wage Spiral are examples of three different types of...

Accepted Answer

Inflation

Question 36

Which of the following forms of business organizations does not focus on financial gain...

Accepted Answer

Nonprofit organization

Question 37

People use these things to make what they want and need...

Accepted Answer

Resources

Question 38

The dollar value of all final goods and services of a country's final output is called the...

Accepted Answer

Gross Domestic Product (GDP)

Question 39

Which of the following best describes an entrepreneur?

Accepted Answer

Risk-taker

Question 40

For something to have value, it must...

Accepted Answer

have utility

Question 41

What is economic interdependence?

Accepted Answer

reliance on each other to provide goods and services

Question 42

About what percentage of the US labor force is in agriculture today?

Accepted Answer

3%

Question 43

During the winter months many farm workers face...

Accepted Answer

Seasonal unemployment

Question 44

Food, clothing, and shelter are...

Accepted Answer

Needs

Question 45

In recent decades, union membership has dropped because of...

Accepted Answer

All of these

Question 46

Which of the following would not be counted in a nation's GDP?

Accepted Answer

Goods produced in a foreign country and sold in the US

Question 47

Which of the following do state and local governments rely on heavily for tax revenues?

Accepted Answer

Property Taxes

Question 48

Who makes the economic decisions in a pure market economy?

Accepted Answer

Individuals

Question 49

The unemployment rate is...

Accepted Answer

All of these

Question 50

What are consumer goods?

Accepted Answer

the goods and services that people buy

Economics Final Exam Review

Questions 50

Economics Final Exam Review

Questions 50