Principles Of Economics Pretest
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- 1.For most people, the largest protion of their personal income comes from:
- A.
Rent paid to them on their property
- B.
Interest on stocks and bonds
- C.
Wages and salries from their jobs
- D.
The federal and state governments.
- 2.
- A.
Only the person renting the apartment
- B.
Only the landlord
- C.
Both the renter and the landlord
- D.
Mortgage companies
- 3.When deciding which of two items to purchase, you should always:
- A.
Choose after comparing costs and benefits of both items
- B.
Choose the item that costs less
- C.
Chosse the item with the greatest benefits
- D.
Choose the item that you want
- 4.If the price of beef doubled and the price of poultry stayed the same, people would most likely buy:
- A.
Less poultry and more beef
- B.
More poultry and less beef
- C.
The same amount of pultry and beef
- D.
Less poultry and beef
- 5.
- A.
Producers and the government
- B.
Government
- C.
Consumers
- D.
Producers, consumers, and government
- 6.
- A.
Reduce the use of those resources
- B.
Try to get more resources
- C.
Focus on their most abundant resource
- D.
Make choices about how to use resources
- 7.
- A.
Lower jean prices and more jeans bought
- B.
Higher jean prices and fewer jeans bought
- C.
No change
- D.
Lower jean prices and fewer jeans bought
- 8.
- A.
A bureaucrat
- B.
A manager
- C.
An entrepreneur
- D.
A Chief Executive Officer (CEO)
- 9.Which of the following would most likely accelerate innovation in the computer industry?
- A.
Taxing all new inventions in the industry
- B.
Investing more into research and development
- C.
Increased government regulation of the industry
- D.
Greater use of PCs by individuals
- 10.
- A.
Increase investment spending
- B.
Decrease the number of employees
- C.
Increase their prices
- D.
See an increase in their stock prices
- 11.
- A.
Helps predict stock prices
- B.
Helps predict corporate earnings
- C.
Brings together buyers and sellers of stocks
- D.
Generally increases the prices of stocks
- 12.
- A.
It holds its value during times of inflation
- B.
It makes saving more difficult
- C.
It makes buying and selling easier
- D.
It doesn't hold its value
- 13.Which of the following are most likely to be helped by inflation?
- A.
Banks that loaned money at a fixed interest rate
- B.
People living on fixed incomes
- C.
People who borrowed money at fixed interest rates
- D.
Businesses
- 14.
- A.
The price of all japanese goods increases
- B.
Japan will import more goods into the US
- C.
Americans in Japan will see that their dollar will buy more goods and services
- D.
America will increase its exports to Japan
- 15.
- A.
Available apartments will equal the number of people who want to rent them
- B.
There will be fewer apartments than people who want to rent them
- C.
There will be more apartments than people who want to rent them.
- D.
No change.
- 16.Whihc of the following methods for reducing pollution would most economists support?
- A.
Increased regulation on polluting companies
- B.
Eliminating all air pollution
- C.
Reducing air pollution until the cost of further reductions outweighs the benefits
- D.
Government sponsored "green" automobiles
- 17.If the United States stopped importing cars from Japan, who would most likely benefit?
- A.
Japanese automakers
- B.
American automakers
- C.
American consumers
- D.
Japanese consumers
- 18.
- A.
The amount of final goods and services produced
- B.
The number of resources used to produce goods and services
- C.
Prices of final goods and services
- D.
Demand for final goods and services
- 19.When a government's expenses for a year are hihger than its revenue for that year, the difference is know a/an
- A.
Surplus
- B.
Shortage
- C.
Budget deficit
- D.
National debt
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