Praxis CKT Social Studies Economics Quiz

1. What occurs when an economy experiences declining output and rising unemployment simultaneously?

Expansion

Recession

Inflation

Deflation

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3. Which market structure has few large firms producing differentiated products with significant barriers to entry?

Perfect competition

Monopolistic competition

Oligopoly

Pure monopoly

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5. Which of the following represents a scarce resource in economics?

Oxygen in the atmosphere

Sunlight

Land for agricultural production

Salt water in oceans

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7. Which economic indicator represents the average change in prices paid by consumers over time?

Producer Price Index

Consumer Price Index

Gross National Product

Real Interest Rate

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9. Which of the following best describes elasticity of demand?

The total revenue from sales

The responsiveness of quantity demanded to price changes

The ability to produce more goods

The difference between revenue and costs

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11. Which economic system relies primarily on market forces and private ownership to allocate resources?

Command economy

Capitalist economy

Socialist economy

Feudal economy

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13. Which fiscal policy action would likely decrease aggregate demand during an inflationary period?

Decreasing taxes

Increasing government spending

Decreasing government spending

Reducing interest rates

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16. Which of the following is a tool of monetary policy used by central banks?

Taxation

Government spending

Interest rates

Tariffs

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18. What is the sustained increase in the general price level of goods and services called?

Deflation

Inflation

Stagflation

Hyperinflation

19. Which type of market structure has many firms producing identical products with easy entry and exit?

Monopoly

Oligopoly

Perfect competition

Monopolistic competition

20. When the quantity demanded exceeds the quantity supplied at the current price, what typically occurs?

Price decreases

Price increases

Supply shifts left

Demand shifts right

Praxis CKT Social Studies Economics Quiz

1. What occurs when an economy experiences declining output and rising unemployment simultaneously?

2.

What first name or nickname would you like us to use?

2. When the economy operates beyond full employment and inflation accelerates, policymakers typically implement ____ fiscal policy.

3. Which market structure has few large firms producing differentiated products with significant barriers to entry?

4. The Federal Reserve increases the money supply by lowering the discount rate, an example of ____ policy.

5. Which of the following represents a scarce resource in economics?

6. When the government provides goods or services that markets underproduce due to positive externalities, it addresses a ____ failure.

7. Which economic indicator represents the average change in prices paid by consumers over time?

8. A negative externality occurs when production or consumption imposes costs on ____ parties.

9. Which of the following best describes elasticity of demand?

10. Comparative advantage exists when a producer can make a good at a lower ____ cost than another producer.

11. Which economic system relies primarily on market forces and private ownership to allocate resources?

12. The law of ____ states that as prices rise, quantity demanded falls, holding other factors constant.

13. Which fiscal policy action would likely decrease aggregate demand during an inflationary period?

14. A firm that is the sole producer of a unique product with high barriers to entry operates as a ____.

15. Gross Domestic Product (GDP) measures the total value of ____ produced within a country in a given period.

16. Which of the following is a tool of monetary policy used by central banks?

17. The percentage of the population actively seeking employment but unable to find work is known as the ____ rate.

18. What is the sustained increase in the general price level of goods and services called?

19. Which type of market structure has many firms producing identical products with easy entry and exit?

20. When the quantity demanded exceeds the quantity supplied at the current price, what typically occurs?