FBLA ECONOMICS PRACTICE QUESTIONS WITH CORRECT ANSWERS 2025

FBLA ECONOMICS PRACTICE QUESTIONS
WITH CORRECT ANSWERS 2025
True/False

InHperfectHcompetition,HnoHsingleHbuyerHorHsellerHhasHaHlargeHenoughHpartHofHtheHtotalHmarketHtoH
affectHprice.H-HCORRECTHANSWERH-True



True/False

SpecializationHresultsHinHaHnetHgainHtoHbothHtradingHpartners.H-HCORRECTHANSWERH-True



True/False

MostHU.S.HtradeHisHwithHcountriesHthatHproduceHentirelyHdifferentHgoodsHthanHareHproducedHdom
estically.H-HCORRECTHANSWERH-False



True/False

GainsHfromHtradeHcanHbeHbasedHonHeitherHcomparativeHorHabsoluteHadvantage.H-
HCORRECTHANSWERH-True




True/False

OrganizingHproductionHisHoneHofHtheHfourHeconomicHfunctionsHofHaHbusinessHfirm.H-
HCORRECTHANSWERH-True




True/False



AHfirmHcannotHremainHinHbusinessHifHitHisHearningHzeroHeconomicHprofits.H-HCORRECTHANSWERH-
False



True/False

,FirmsHareHmotivatedHtoHenterHorHleaveHcompetitiveHindustriesHbyHtheHlevelHofHprofits.H-
HCORRECTHANSWERH-True




True/False

OneHexampleHofHtheHfreeHriderHproblemHisHtheHpersonHwhoHridesHtheHbusHwithoutHpayingHfullHfare
.H-HCORRECTHANSWERH-False



True/False

OneHopportunityHcostHofHaHcleanerHenvironmentHisHmoreHexpensiveHgoodsHandHservices.H-
HCORRECTHANSWERH-True




True/False

BorrowingHfromHaHbankHincreasesHtheHsupplyHofHmoneyHbyHincreasingHdemandHdeposits.H-
HCORRECTHANSWERH-True




True/False

TheHmoneyHsupplyHcanHchangeHonlyHifHtheHgovernmentHborrowsHmoney.H-HCORRECTHANSWERH-
False



True/False

TheHfederalHgovernmentHemploysHmoreHpeopleHandHpurchasesHmoreHgoodsHandHservicesHthanHall
HstateHandHlocalHgovernmentsHcombined.H-HCORRECTHANSWERH-False




True/False

TheHprincipalHreasonHforHgovernmentHtaxingHandHspendingHisHtoHprovideHpublicHgoodsHandHservic
es.H-HCORRECTHANSWERH-True



True/False

, TheHimpactHlagHisHtheHtimeHitHactuallyHtakesHaHpolicyHchangeHtoHaffectHtheHeconomy.H-
HCORRECTHANSWERH-True




True/False

SocialHSecurityHisHfinancedHthroughHtheHsaleHofHU.S.HgovernmentHbonds.H-HCORRECTHANSWERH-
False



True/False

TheHlawHofHdemandHisHthatHforHmostHgoods,HconsumersHareHgenerallyHwillingHtoHpurchaseHlessHatH
aHlowerHprice.H-HCORRECTHANSWERH-False



True/False

IfHthereHisHnoHpressureHforHpricesHtoHchange,HtheHquantityHdemandedHequalsHquantityHsupplied.H-
HCORRECTHANSWERH-True




True/False

TheHdifferenceHbetweenHshortHrunHandHlongHrunHisHdefinedHinHtermsHofHgovernmentHclassification
.H-HCORRECTHANSWERH-False



True/False

IfHtheHpriceHofHorangesHisHbelowHtheHequilibriumHprice,HthereHwillHbeHaHshortageHofHorangesHandHt
heHpriceHofHorangesHwillHincrease.H-HCORRECTHANSWERH-True



True/False

OneHmajorHdisadvantageHofHcorporationsHisHtheHhighHpersonalHliabilityHofHtheHowners.H-
HCORRECTHANSWERH-False




True/False