Economics Pre-test Chapters 1-4

43 Questions  I  By Dlulch24
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Economics Quizzes & Trivia
Quiz for slavin chapters 1-4. Something to prepare me for my exam.

  
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  • 1. 
    Why is savings good for the economy?
    • A. 

      The more we save the less we spend

    • B. 

      Keeps inflation from increasing

    • C. 

      It keeps intrest rates low

    • D. 

      The FDIC has more money


  • 2. 
    When supply price                       intrest rates                            .
    • A. 

      Increase,decrease

    • B. 

      Increase,increase

    • C. 

      Decrease,increase

    • D. 

      Decrease,decrease


  • 3. 
    What are the 4 means of production?        

  • 4. 
    What is the reason why we produce more?
    • A. 

      Demand

    • B. 

      Capital goods

    • C. 

      Supply

    • D. 

      Profit motive


  • 5. 
    Adam smith believed that the government should be involved in...      

  • 6. 
    Match the country to its economic system.
    • A. China
    • A.
    • B. U.S.
    • B.
    • C. Norway
    • C.
    • D. Canada
    • D.
    • E. Europe
    • E.
    • F. Great Britian
    • F.
    • G. France
    • G.
    • H. Japan
    • H.
    • I. Sweden
    • I.
    • J. Greece
    • J.

  • 7. 
    Which economic system provides cradle to the grave security?
    • A. 

      Socialism

    • B. 

      Capitalism

    • C. 

      Communism


  • 8. 
    A price floor represents a _______________?

  • 9. 
    A price celing represents a                                 ? 

  • 10. 
    Gas prices is an example of                           ?

  • 11. 
    Minimum wage is an example of                                    ?

  • 12. 
    This the product each person is know for producing during the age of Industrial Capitalist. Rockefeller: McCormick: Carnegie: Du Pont: Swift:

  • 13. 
    Which President believed in supply side economics?
    • A. 

      Esienhower

    • B. 

      Reagan

    • C. 

      Johnson

    • D. 

      Rosevelt


  • 14. 
    Which President Implemented the New Deal?
    • A. 

      Esienhower

    • B. 

      Reagan

    • C. 

      Johnson

    • D. 

      Rosevelt


  • 15. 
    Each of the following were elements of the New Deal except______________
    • A. 

      Relief,recovery,reform

    • B. 

      A massive employment program

    • C. 

      Unemployment insurance and bank deposit insurance

    • D. 

      A balanced budget


  • 16. 
    The longest economic expansion began in ______________
    • A. 

      1961

    • B. 

      1982

    • C. 

      1991

    • D. 

      1993


  • 17. 
    Medicare & Medicaid were inaugurated under the administration of                        .
    • A. 

      Johnson

    • B. 

      Kennedy

    • C. 

      Eisenhower

    • D. 

      Roosevelt


  • 18. 
    The word that is central to the definition of economics is                             .
    • A. 

      Resource

    • B. 

      Wants

    • C. 

      Scarcity

    • D. 

      Capital


  • 19. 
    Each of the following is an example of capital except                       .
    • A. 

      Land

    • B. 

      An office building

    • C. 

      A computer system

    • D. 

      A factory


  • 20. 
    An economy operating its plant and equiptment at full capacity implies a capacity utilization rate of                              .
    • A. 

      40%

    • B. 

      70%

    • C. 

      85%

    • D. 

      100%


  • 21. 
    The full-production level of our economy implies                         .
    • A. 

      An efficent allocation of our resources

    • B. 

      Zero unemployment

    • C. 

      Our plant and equiptment being operated at 100% capacity

    • D. 

      A high unemployment rate


  • 22. 
    If we are operating inside our production possibilities curve                             .
    • A. 

      There is a recession going on

    • B. 

      There is NOT a recession going on

    • C. 

      There is less than full employment

    • D. 

      There is inflation


  • 23. 
    To attain a higher rate of economic growth, we need to devote                                 .
    • A. 

      A higher proportion of our production to capital goods and a lower proportion to consumer goods.

    • B. 

      A higher proportion of our production to consumer goods and a lower proportion to capital goods.

    • C. 

      A higher proportion of our production to both capital goods and consumer goods.

    • D. 

      A lower proportion of both capital goods consumer goods.


  • 24. 
    As we produce increasing amounts of a particular good, the resources used in its production                          .
    • A. 

      Become more suitable

    • B. 

      Become less suitable

    • C. 

      Continue to have the same suitability


  • 25. 
    The law of increasing costs is explained by each of the following except                         .
    • A. 

      The law of dimishing returns

    • B. 

      Diseconomics of scale

    • C. 

      Factor suitability

    • D. 

      Overspecialization


  • 26. 
    As a firm grows larger,                                .
    • A. 

      Economics of scale set in, then diseconomics of scale

    • B. 

      Diseconomics of scale set in, then economics of scale

    • C. 

      Economics of scale and diseconomics of scale set in at the same time

    • D. 

      Neither economics of scale and diseconomics of scale set in


  • 27. 
    The law of increasing costs states that, as                          .
    • A. 

      Output rises, cost per unit rises as well

    • B. 

      The output of one good expands, the opportunity cost of producing additionaal units of this good increases

    • C. 

      Economics of scale set in, costs increase

    • D. 

      Output rises,diminishinmg returen set in


  • 28. 
    The price system is based on                         .
    • A. 

      Government regulation

    • B. 

      The supplier who sets the price

    • C. 

      The feeling of the individual buyer

    • D. 

      Supply and demand


  • 29. 
    The strongest indictment of the capitalist system was written by                                     .
    • A. 

      Adam smith

    • B. 

      John keynes

    • C. 

      Rose cohen

    • D. 

      Karl marx


  • 30. 
    Capital comes from                        .
    • A. 

      Gold

    • B. 

      Savings

    • C. 

      High consumption

    • D. 

      The government


  • 31. 
    When demand rises and supply stays the same,                          .
    • A. 

      Equilibrium quantity rises

    • B. 

      Equilibrium quantity falls

    • C. 

      Equilibrium quantity stays the same


  • 32. 
    At equilibrium price,quantity demanded is                           .
    • A. 

      Greater than quantity supplied

    • B. 

      Equal to quantity supplied

    • C. 

      Smaller than quantity supplied


  • 33. 
    When quantity demanded is greater than quantity supplied,                                .
    • A. 

      Market price will rise

    • B. 

      Market price will fall

    • C. 

      Market price will stay the same


  • 34. 
    What happens to quantity demanded when price is raised?
    • A. 

      It rises

    • B. 

      It falls

    • C. 

      It stays the same


  • 35. 
    Market price                       equilibrium price
    • A. 

      Must always be equal to

    • B. 

      Must always be above

    • C. 

      May be equal to


  • 36. 
    Market price may not reach equilibrium if there are                        .
    • A. 

      Both price ceilings and price floors

    • B. 

      Neither price ceilings nor price floors

    • C. 

      Only price ceilings

    • D. 

      Only price floors


  • 37. 
    An increase in supply while demand remains unchanged will lead to ___________________.
    • A. 

      An increase in equilibrium price and a decrease in equilibrium quantity

    • B. 

      An decrease in equilibrium price and a decrease in equilibrium quantity

    • C. 

      An increase in equilibrium price and a increase in equilibrium quantity

    • D. 

      An decrease in equilibrium price and a increase in equilibrium quantity


  • 38. 
    A decrease in demand while supply remains unchanced will lead to                            .
    • A. 

      An increase in equilibrium price and quantity

    • B. 

      An decrease in equilibrium price and quantity

    • C. 

      An increase in equilibrium price and decrease equilibrium quantity

    • D. 

      An decrease in equilibrium price and an increase equilibrium quantity


  • 39. 
    As price rises,                             .
    • A. 

      Quantity demanded and quantity supplied both rise

    • B. 

      Quantity demanded and quantity supplied both fall

    • C. 

      Quantity demanded rises and quantity supplied falls

    • D. 

      Quantity demanded fallsand quantity supplied rises


  • 40. 
    When quantity demanded is greater than quantity supplied, there                                 .
    • A. 

      Is a shortage

    • B. 

      Is a surplus

    • C. 

      May be a shortage or surplus


  • 41. 
    When quantity supplied is greater than quantity demanded,                                   .
    • A. 

      Price will fall to its equilibrium level

    • B. 

      Price will rise to its equilibrium level

    • C. 

      Price may rise, fall or stay the same, depending on a variety of factors


  • 42. 
    Usury laws and rent control are examples of                      .
    • A. 

      Price floors

    • B. 

      Price celilings

    • C. 

      Rationing

    • D. 

      Supply and demand


  • 43. 
    The best way to eliminate gas lines would be to                           .
    • A. 

      Impose government price ceilings

    • B. 

      Impose government price floors

    • C. 

      Allow the forces of supply and demand to function

    • D. 

      Put price gougers in jail


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