Economics 6 - 9 Test - Quiz & Trivia

1. What type of economic system is based upon custom, heredity, and caste?

Command

Free enterprise

Mixed

Traditional

Submit

3. The three main components of the Federal Reserve System are the Federal Open Market Committee, the Federal Reserve banks, and the Board of Governors.

True

False

Submit

5. Throughout history, many governments have deflated their currencies by adding lead, copper, and iron to gold and silver coins.

True

False

Submit

11. A natural monopoly occurs when a single firm can fill the demand for a good more efficiently.

True

False

Submit

18. What type of good is a truck used by a florist to deliver flowers?

Consumer

Capital

Productive

Supplier

Submit

23. Supply is the relationship between a goods price and the amount that producers are willing to make available.

True

False

24. What type of investment allows an individual to receive a fixed amount of dividends before other investors?

Common stock

Preferred stock

Bonds

Mutual funds

25. Proficiency is the quality of producing effectively with a minimum of waste.

True

False

26. The U.S. money supply is managed by the Treasury Department.

True

False

27. When too much money is in circulation, the result is inflation.

True

False

28. The total cost is the sum cost of all the factors of production used in making goods.

True

False

29. What is a group of firms that produce similar products or provide similar services?

Industry

Enterprise

Business

Union

30. A service is a tangible item for which people will pay.

True

False

31. A consumer is an individual who provides goods.

True

False

32. Which group favored a "natural economy"?

Imperialists

Protectionists

Physiocrats

Mercantilists

33. What type of economic system is controlled by a centralized authority?

Command

Free enterprise

Mixed

Traditional

34. When the demand for a good increases, the good's equilibrium price tends to increase.

True

False

35. What quality should money possess that shows its stability in value.

Constancy

Divisibility

Durability

Portability

36. The value of a good varies according to its utility and its scarcity.

True

False

37. What are the three principal purposes of money?

Return rate

Medium of exchange

Become investor savings

Provide a measure of value

Allow for investments

Provide a store of value

Submit

38. What type of investment allows an individual to vote at company meetings?

Common stock

Preferred stock

Bonds

Mutual funds

39. The result of a price ceiling would be a shortage.

True

False

40. 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.

True

False

41. In market economies, most of the savings needed to fund R&D comes from the public sector.

True

False

42. Select the characteristics of the Perfect Competition Model

Significant entry barriers

Produce a standardized Product

No close substitutes for a firm's product

Large number of independent buyers and sellers

Submit

43. Select each characteristic featured in an Oligopoly.

Produce a standardized product

Few firms in entire industry

Significant entry barriers

Large number of firms

Submit

44. What type of good does not last more than three years?

Inferior good

Non-durable good

Normal good

Durable good

45. What is the value asserted to the worth of a coin or bill?

Absolute value

Face value

Intrinsic value

Constant value

46. What states that when the price of a good falls, consumers tend to buy more of that good?

Elasticity effect

Substitute effect

Income effect

Demand effect

47. If the supply of tennis rackets increased while the demand remained steady, stores would likely increase the prices of rackets.

True

False

48. 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?

$45,000

$55,000$55,000

$105,000

$125,000

49. What type of account guarantees a certain interest rate and has a specified maturity date?

CD

Checking

Money market

Savings

50. What is the American automobile industry an example of?

Perfect competition

Monopoly

Monopolistic competition

Oligopoly

51. What type of money consists only of transaction accounts, traveler's checks, and all coins and paper money held only outside banks?

M1

M2

M3

Near-monies

52. Select the three key elements that determine how much investments will grow?

Rate of return

Medium of exchange

Amount invested

Measure of value provided

Time

Store of value provided

Submit

53. What quality should money possess that shows its availability in small or large units?

Constancy

Divisibility

Durability

Portability

54. What is a written order that authorizes a bank to remove funds from an account?

Withdrawal

Transaction

Deposit

Check

55. What type of account allows limited transactions and pays an interest rate that changes with the demand for loans?

CD

Checking

Money market

Savings

56. Besides limited government and freedom of enterprise and competition, to what does the free market economy owe its proficiency?

Division of labor

Productivity

Natural resources

Property rights

57. What is the retail clothing industry in a large city an example of?

Perfect competition

Monopoly

Oligopoly

Monopolistic competition

58. Select the characteristics that match the model for a Monopoly

Blocked entry to market

Produce a standardized product

Large number of firms

No close substitutes for firm's product

Sole supplier of a good or service

Submit

59. Trade is the exchange of one good for another good without a standard money form passing from hand to hand.

True

False

60. Select the characteristics of the Monopolistic Competition model.

Blocked entry into market

Produce a standardized product

Significant entry barriers

Large number of firms

Sole supplier of a good or service

61. One way to improve efficiency is to keep output constant and increase input.

True

False

62. Match each description with the correct economists.

Adam Smith

Carl Menger

E.I. du Pont

David Ricardo

Henry Ford

Pierre Samuel du Pont

Submit

65. Match each definition with the correct term.

tax on imported goods

amount of satisfaction resulting from a one-unit increase of a product

total amount invested in the production of a good

total value of a business minus any liabilities

value of the best alternative that is foregone when a different alternative is taken

the place at which quantity demanded and quantity supplied are equal

forces the consumer to buy certain products before he is able to buy what he really wants

total amount of a good produced

excess of the total revenue paid by buyers for goods over the seller's total expense of producing those goods

total amount of satisfaction received from a particular amount of some good

Submit

66. Match each definition with the correct term.

a contract between two parties of protection

protects stockholders from paying the firm's creditors in event of failure or bankruptcy

legal entity which is distinct from the people who own it

allow for the invetment of money in a wide variety of all areas

an arrangement for the intent of providing for retirement from work

assets that flow easily since they can be converted into other investments

Submit

67. Match each definition with the correct term.

payments for insurance

gurantees the amount of original investment plus a specififed rate of interest by a certain date

shares of a corporation's profit

coined, metallic money

bars of gold, silver, or platinum

the resources corporations gather by selling ownership in their businesses

any form of money that has been declared a valid means of payment

Submit

Economics 6 - 9 Test

1. What type of economic system is based upon custom, heredity, and caste?

2.

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

2. What did the apostle Paul say was the root of all evil?

3. The three main components of the Federal Reserve System are the Federal Open Market Committee, the Federal Reserve banks, and the Board of Governors.

4. What is the study of the choices that individuals and societies make in the production, distribution, and consumption of goods?

5. Throughout history, many governments have deflated their currencies by adding lead, copper, and iron to gold and silver coins.

6. What term refers to one who borrows money?

7. What term refers to one who lends money or capital?

8. What corporation created by Congress insures the money in each type of bank account?

9. What is a list of numbers that compares price with quantity demanded?

10. 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?

11. A natural monopoly occurs when a single firm can fill the demand for a good more efficiently.

12. What do consumers send to producers to let them what goods are wanted at what prices?

13. What governmental agency investigates trade practices?

14. What term deals with the study of specific components within a major economy?

15. What was the first act implemented in 1890 to regulate monopolistic trusts?

16. What United States Department is responsible for coining and printing American money?

17. What antitrust act was passed in 194 that addressed practices not addressed in earlier laws?

18. What type of good is a truck used by a florist to deliver flowers?

19. What three things is mass production based on?

20. What is legal tender that is backed by only a government's promise?

21. What is the production of goods in which a country or region has absolute or comparative advantage?

22. What does CD stand for? (and no I don't mean Compact Disc)

23. Supply is the relationship between a goods price and the amount that producers are willing to make available.

24. What type of investment allows an individual to receive a fixed amount of dividends before other investors?

25. Proficiency is the quality of producing effectively with a minimum of waste.

26. The U.S. money supply is managed by the Treasury Department.

27. When too much money is in circulation, the result is inflation.

28. The total cost is the sum cost of all the factors of production used in making goods.

29. What is a group of firms that produce similar products or provide similar services?

30. A service is a tangible item for which people will pay.

31. A consumer is an individual who provides goods.

32. Which group favored a "natural economy"?

33. What type of economic system is controlled by a centralized authority?

34. When the demand for a good increases, the good's equilibrium price tends to increase.

35. What quality should money possess that shows its stability in value.

36. The value of a good varies according to its utility and its scarcity.

37. What are the three principal purposes of money?

38. What type of investment allows an individual to vote at company meetings?

39. The result of a price ceiling would be a shortage.

40. 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.

41. In market economies, most of the savings needed to fund R&D comes from the public sector.

42. Select the characteristics of the Perfect Competition Model

43. Select each characteristic featured in an Oligopoly.

44. What type of good does not last more than three years?

45. What is the value asserted to the worth of a coin or bill?

46. What states that when the price of a good falls, consumers tend to buy more of that good?

47. If the supply of tennis rackets increased while the demand remained steady, stores would likely increase the prices of rackets.

48. 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?

49. What type of account guarantees a certain interest rate and has a specified maturity date?

50. What is the American automobile industry an example of?

51. What type of money consists only of transaction accounts, traveler's checks, and all coins and paper money held only outside banks?

52. Select the three key elements that determine how much investments will grow?

53. What quality should money possess that shows its availability in small or large units?

54. What is a written order that authorizes a bank to remove funds from an account?

55. What type of account allows limited transactions and pays an interest rate that changes with the demand for loans?

56. Besides limited government and freedom of enterprise and competition, to what does the free market economy owe its proficiency?

57. What is the retail clothing industry in a large city an example of?

58. Select the characteristics that match the model for a Monopoly

59. Trade is the exchange of one good for another good without a standard money form passing from hand to hand.

60. Select the characteristics of the Monopolistic Competition model.

61. One way to improve efficiency is to keep output constant and increase input.

62. Match each description with the correct economists.

63. What principle refers to people hoarding stable forms of money while spending less stable forms?

64. What are the Four Factors of Production?

65. Match each definition with the correct term.

66. Match each definition with the correct term.

67. Match each definition with the correct term.