Economics 6 - 9 Test
.
- 1.
What type of good is a truck used by a florist to deliver flowers?
- A.
Consumer
- B.
Capital
- C.
Productive
- D.
Supplier
Correct Answer
B. Capital -
- 2.
Which group favored a "natural economy"?
- A.
Imperialists
- B.
Protectionists
- C.
Physiocrats
- D.
Mercantilists
Correct Answer
C. Physiocrats -
- 3.
If Gordon McConnell's accounting business had expenses equaling $90,000 and revenues totaling $115,000 last year, but could have had a salary of $80,000 working for someone else, what was his opportunity cost?
- A.
$45,000
- B.
$55,000 $55,000
- C.
$105,000
- D.
$125,000
Correct Answer
B. $55,000 $55,000 -
- 4.
What states that when the price of a good falls, consumers tend to buy more of that good?
- A.
Elasticity effect
- B.
Substitute effect
- C.
Income effect
- D.
Demand effect
Correct Answer
C. Income effect -
- 5.
What type of good does not last more than three years?
- A.
Inferior good
- B.
Non-durable good
- C.
Normal good
- D.
Durable good
Correct Answer
B. Non-durable good -
- 6.
What type of economic system is controlled by a centralized authority?
- A.
Command
- B.
Free enterprise
- C.
Mixed
- D.
Traditional
Correct Answer
A. Command -
- 7.
What type of economic system is based upon custom, heredity, and caste?
- A.
Command
- B.
Free enterprise
- C.
Mixed
- D.
Traditional
Correct Answer
D. Traditional -
- 8.
Besides limited government and freedom of enterprise and competition, to what does the free market economy owe its proficiency?
- A.
Division of labor
- B.
Productivity
- C.
Natural resources
- D.
Property rights
Correct Answer
D. Property rights -
- 9.
What is a group of firms that produce similar products or provide similar services?
- A.
Industry
- B.
Enterprise
- C.
Business
- D.
Union
Correct Answer
A. Industry -
- 10.
What is the retail clothing industry in a large city an example of?
- A.
Perfect competition
- B.
Monopoly
- C.
Oligopoly
- D.
Monopolistic competition
Correct Answer
D. Monopolistic competition -
- 11.
What is the American automobile industry an example of?
- A.
Perfect competition
- B.
Monopoly
- C.
Monopolistic competition
- D.
Oligopoly
Correct Answer
D. Oligopoly -
- 12.
What is the study of the choices that individuals and societies make in the production, distribution, and consumption of goods?
Correct Answer
economics - 13.
What are the Four Factors of Production?
Correct Answer
Natural Resources, Labor, Capital, Entrepreneurship - 14.
What is a list of numbers that compares price with quantity demanded?
Correct Answer
demand schedule - 15.
If Firm A can produce 50 shoes or 40 coats with the same amount of resources from which Firm B can produce 45 coats or 65 shoes, which firm has the comparative advantage in coats?
Correct Answer
Firm A - 16.
What governmental agency investigates trade practices?
Correct Answer
Federal Trade Commission - 17.
What was the first act implemented in 1890 to regulate monopolistic trusts?
Correct Answer
Sherman Act - 18.
What antitrust act was passed in 194 that addressed practices not addressed in earlier laws?
Correct Answer
Clayton Act - 19.
What three things is mass production based on?
Correct Answer
Division of labor, Standardized Parts, Automatic Conveyance - 20.
What is the production of goods in which a country or region has absolute or comparative advantage?
Correct Answer
Geographic Specialization - 21.
What do consumers send to producers to let them what goods are wanted at what prices?
Correct Answer
signals
market signals - 22.
What term deals with the study of specific components within a major economy?
Correct Answer
Microeconomics - 23.
One way to improve efficiency is to keep output constant and increase input.
- A.
True
- B.
False
Correct Answer
A. True -
- 24.
When the demand for a good increases, the good's equilibrium price tends to increase.
- A.
True
- B.
False
Correct Answer
A. True -
- 25.
If the supply of tennis rackets increased while the demand remained steady, stores would likely increase the prices of rackets.
- A.
True
- B.
False
Correct Answer
B. False -
- 26.
The value of a good varies according to its utility and its scarcity.
- A.
True
- B.
False
Correct Answer
A. True -
- 27.
Absolute advantage is the ability of an entity to produce a good or provide a service at an opportunity cost that is lower than that of another producer.
- A.
True
- B.
False
Correct Answer
B. False -
- 28.
The total cost is the sum cost of all the factors of production used in making goods.
- A.
True
- B.
False
Correct Answer
A. True -
- 29.
A natural monopoly occurs when a single firm can fill the demand for a good more efficiently.
- A.
True
- B.
False
Correct Answer
A. True -
- 30.
A service is a tangible item for which people will pay.
- A.
True
- B.
False
Correct Answer
B. False -
- 31.
A consumer is an individual who provides goods.
- A.
True
- B.
False
Correct Answer
B. False -
- 32.
Supply is the relationship between a goods price and the amount that producers are willing to make available.
- A.
True
- B.
False
Correct Answer
A. True -
- 33.
Proficiency is the quality of producing effectively with a minimum of waste.
- A.
True
- B.
False
Correct Answer
B. False -
- 34.
The result of a price ceiling would be a shortage.
- A.
True
- B.
False
Correct Answer
A. True -
- 35.
Select the characteristics that match the model for a Monopoly
- A.
Blocked entry to market
- B.
Produce a standardized product
- C.
Large number of firms
- D.
No close substitutes for firm's product
- E.
Sole supplier of a good or service
Correct Answer(s)
A. Blocked entry to market
D. No close substitutes for firm's product
E. Sole supplier of a good or service -
- 36.
Select the characteristics of the Monopolistic Competition model.
- A.
Blocked entry into market
- B.
Produce a standardized product
- C.
Significant entry barriers
- D.
Large number of firms
- E.
Sole supplier of a good or service
Correct Answer
D. Large number of firms -
- 37.
Select each characteristic featured in an Oligopoly.
- A.
Produce a standardized product
- B.
Few firms in entire industry
- C.
Significant entry barriers
- D.
Large number of firms
Correct Answer(s)
B. Few firms in entire industry
C. Significant entry barriers -
- 38.
Select the characteristics of the Perfect Competition Model
- A.
Significant entry barriers
- B.
Produce a standardized Product
- C.
No close substitutes for a firm's product
- D.
Large number of independent buyers and sellers
Correct Answer(s)
B. Produce a standardized Product
D. Large number of independent buyers and sellers -
- 39.
What type of account guarantees a certain interest rate and has a specified maturity date?
- A.
CD
- B.
Checking
- C.
Money market
- D.
Savings
Correct Answer
A. CD -
- 40.
What type of account allows limited transactions and pays an interest rate that changes with the demand for loans?
- A.
CD
- B.
Checking
- C.
Money market
- D.
Savings
Correct Answer
C. Money market -
- 41.
What quality should money possess that shows its stability in value.
- A.
Constancy
- B.
Divisibility
- C.
Durability
- D.
Portability
Correct Answer
A. Constancy -
- 42.
What quality should money possess that shows its availability in small or large units?
- A.
Constancy
- B.
Divisibility
- C.
Durability
- D.
Portability
Correct Answer
B. Divisibility -
- 43.
What is a written order that authorizes a bank to remove funds from an account?
- A.
Withdrawal
- B.
Transaction
- C.
Deposit
- D.
Check
Correct Answer
D. Check -
- 44.
What type of investment allows an individual to vote at company meetings?
- A.
Common stock
- B.
Preferred stock
- C.
Bonds
- D.
Mutual funds
Correct Answer
A. Common stock -
- 45.
What type of investment allows an individual to receive a fixed amount of dividends before other investors?
- A.
Common stock
- B.
Preferred stock
- C.
Bonds
- D.
Mutual funds
Correct Answer
B. Preferred stock -
- 46.
What is the value asserted to the worth of a coin or bill?
- A.
Absolute value
- B.
Face value
- C.
Intrinsic value
- D.
Constant value
Correct Answer
B. Face value -
- 47.
What type of money consists only of transaction accounts, traveler's checks, and all coins and paper money held only outside banks?
- A.
M1
- B.
M2
- C.
M3
- D.
Near-monies
Correct Answer
A. M1 -
- 48.
What did the apostle Paul say was the root of all evil?
Correct Answer
Love of Money - 49.
What principle refers to people hoarding stable forms of money while spending less stable forms?
Correct Answer
Gresham's Law - 50.
What term refers to one who borrows money?
Correct Answer
debtor
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Current Version
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Mar 20, 2022Quiz Edited by
ProProfs Editorial Team -
Feb 03, 2015Quiz Created by
Tammy Mcilvoy
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