Economics Test – Questions And Detailed Solutions
Use the information below to answer the question.
Four shepherds let their sheep graze on a common field. Concerned that
the sheep were overgrazing the
field, the shepherds soon decided to divide the field into four fenced-off
areas where each shepherd could
let his or her own flock graze.
Which statement best explains a likely effect of this decision? Correct
Ans - C. The shepherds will benefit because they have incentive for the
sheep to graze moderately.
Use the diagram below to answer the question.
Federal Reserve raises reserve requirements -> ?
Which statement best completes this diagram? Correct Ans - B.
Banks have fewer funds to lend.
How would the Federal Reserve most likely respond when faced with low
consumer confidence? Correct Ans - C. by raising the discount rate
to decrease the money supply
Use the excerpt below to answer the question.
Computer specialists did not exist in 1910, and there were few, if any, in
1950, so they do not appear in
the 1950 census. . . . The first commercial electronic computer was
delivered in 1951, and employment
data on computer specialists were first collected in the 1960 Census.
Computer specialists grew 95
times as a proportion of total employment between 1960 and 2000, from
0.02 percent to 1.92 percent.
—"Occupational Changes during the 20th Century," Ian D. Wyatt and Daniel
E. Hecker, U.S. Bureau of
Labor Statistics, 2006
, Which statement is best supported by the excerpt? Correct Ans - C.
Companies benefited from the widespread use of workplace computers.
5. Which of the following statements is not true of the Federal Reserve
System? Correct Ans - D. The Federal Reserve System makes a
profit by making loans to member banks.
Use the news headline to answer the question.
* Daily News *
New punishments issued for making illegal copies of video and games.
The headline is most directly associated with which benefit of the U.S. free
enterprise system? Correct Ans - B. protection of private property
No government has the assets to supply everything its citizens might want
or need. What does
this basic economic fact force governments to do? Correct Ans - D.
make choices among goods and services currently on the market
Use the diagram to answer the question.
<- A B C D ->
less gov't More control
control of
economy
Which point on the diagram best represents an economy based on
communism? Correct Ans - D. Point D
Use the list below to answer the question.
Imports and Exports Scenarios
• The United States imports more goods from Mexico than the United
States exports to Mexico.
• Mexico exports more goods to Canada than Mexico imports from Canada.
• Canada imports more goods from Great Britain than Canada exports to
Great Britain.
Use the information below to answer the question.
Four shepherds let their sheep graze on a common field. Concerned that
the sheep were overgrazing the
field, the shepherds soon decided to divide the field into four fenced-off
areas where each shepherd could
let his or her own flock graze.
Which statement best explains a likely effect of this decision? Correct
Ans - C. The shepherds will benefit because they have incentive for the
sheep to graze moderately.
Use the diagram below to answer the question.
Federal Reserve raises reserve requirements -> ?
Which statement best completes this diagram? Correct Ans - B.
Banks have fewer funds to lend.
How would the Federal Reserve most likely respond when faced with low
consumer confidence? Correct Ans - C. by raising the discount rate
to decrease the money supply
Use the excerpt below to answer the question.
Computer specialists did not exist in 1910, and there were few, if any, in
1950, so they do not appear in
the 1950 census. . . . The first commercial electronic computer was
delivered in 1951, and employment
data on computer specialists were first collected in the 1960 Census.
Computer specialists grew 95
times as a proportion of total employment between 1960 and 2000, from
0.02 percent to 1.92 percent.
—"Occupational Changes during the 20th Century," Ian D. Wyatt and Daniel
E. Hecker, U.S. Bureau of
Labor Statistics, 2006
, Which statement is best supported by the excerpt? Correct Ans - C.
Companies benefited from the widespread use of workplace computers.
5. Which of the following statements is not true of the Federal Reserve
System? Correct Ans - D. The Federal Reserve System makes a
profit by making loans to member banks.
Use the news headline to answer the question.
* Daily News *
New punishments issued for making illegal copies of video and games.
The headline is most directly associated with which benefit of the U.S. free
enterprise system? Correct Ans - B. protection of private property
No government has the assets to supply everything its citizens might want
or need. What does
this basic economic fact force governments to do? Correct Ans - D.
make choices among goods and services currently on the market
Use the diagram to answer the question.
<- A B C D ->
less gov't More control
control of
economy
Which point on the diagram best represents an economy based on
communism? Correct Ans - D. Point D
Use the list below to answer the question.
Imports and Exports Scenarios
• The United States imports more goods from Mexico than the United
States exports to Mexico.
• Mexico exports more goods to Canada than Mexico imports from Canada.
• Canada imports more goods from Great Britain than Canada exports to
Great Britain.
