ECON EXAM QUESTIONS AND ANSWERS
Which factors influence changes in consumer demand? Check all that apply. - Answers
- elasticity
clearance sales
income
Gross domestic product (GDP) is the value of goods and services produced in a country
annually.
It can best be described as measuring an economy's - Answers - total output.
Which of these practices describe how producers in oligopolies generally try to create
competition? Check all that apply. - Answers - by keeping prices low
by offering promotions
by advertising
by cultivating brand loyalty
by overcoming barriers to entry
by developing a specific image
What is one main objective in the study of economics? - Answers - recognizing the
relationship between producers and consumers
Why is the slow growth that can result from a contractionary policy a positive effect? -
Answers - It can increase interest rates.
It can decrease available credit.
It can increase the money supply.
*It can decrease inflation.*
In a competitive market, a computer store offers customers a warranty to help pay for
any future damages. This is an example of - Answers - following a federal regulation.
lowering prices for customers.
*reducing the risk for consumers.*
creating a new or better product.
Which organization created a shared economy? - Answers - European Union
In a mixed market economy, what is a typical way the government can reduce
unemployment? - Answers - *The government can pay for projects to create work.*
The government can control new factories to provide jobs.
The government can create new farm fields to hire workers.
The government can raise taxes to encourage employment.
The graph shows the price of a good compared to the quantity demanded.
,This graph demonstrates how - Answers - the amount produced slightly changes with
the price.
the amount produced greatly changes with the price.
the quantity demanded *changes slightly with the price.*
the quantity demanded changes greatly with the price.
In a free market system, price controls can include both floors and - Answers - ceilings
The graph shows the marginal cost of producing soccer cleats for Sabrina's Soccer.
At which level of production does the company make the most profit? - Answers - *the
first pair of cleats*
the second pair of cleats
the third pair of cleats
the fourth pair of cleats
Which situation is an example of comparative advantage? - Answers - A country
decides to export goods when another country does not.
*A country decides to create goods at half the cost of another country.*
A country decides to grow wheat and when another country raises cattle.
A country decides to invest in technology and another country does not.
Aggregate supply is best described as the - Answers - *total output of all products and
services.*
point of equilibrium.
nation's real gross national product.
excess supply in the market.
When entrepreneurs develop new products, other companies also experience growth
because they - Answers - immediately copy the successful product.
*create many companion products.*
try to develop their own products.
attempt to improve the product.
What is one reason why the government would provide financial assistance to an
entrepreneur? - Answers - to decrease the high rate of failure of new businesses
*to encourage the invention and development of products*
to stimulate the economy while decreasing unemployment
to limit the amount of personal funds used to start the business
Who was Adam Smith? - Answers - *He was a philosopher who promoted the idea of
free enterprise.*
He was an economist who spoke against the market economy.
He was an official who ran an important government agency.
He was a producer who operated a factory in Scotland.
, What do the indicators used by economists reveal? - Answers - *changes in production
and demand*
changes in employment levels
changes in prices
changes in the health of an economy
What new laws did the New York Factory Investigating Commission request? Check all
that apply. - Answers - no factory workers under age ten
use of central air-conditioning systems
a minimum wage for all workers
*increased sanitation standards*
*fire alarms and sprinkler systems*
Which occurs during disequilibrium? Check all that apply. - Answers - Supply and
demand meet.
*Supply is less than demand.*
Supply and demand set prices.
*Supply is greater than demand.*
Supply and demand set production.
When artists pass away, the supply of their paintings most likely becomes . - Answers
- Worthless
*Elastic*
Inelastic
Plentiful
Which best describes how advertising influences consumer choice in an oligopoly? -
Answers - *Advertising coaxes people to buy new products.*
Advertising alerts consumers to price reductions.
Advertising undermines competition.
Advertising informs brand knowledge.
Which are indicators that economists use to measure how an economy grows? Select
all that apply. - Answers - monitoring election results
*measuring how much the economy produces*
monitoring the popularity of different music groups
studying the economy of another country
*tracking the unemployment rate*
The chart shows the marginal cost of producing apple pies.
This chart demonstrates that the marginal cost - Answers - initially decreases as
production increases.
*initially increases as production increases.*
eventually decreases as production increases.
eventually increases as production decreases.
Which factors influence changes in consumer demand? Check all that apply. - Answers
- elasticity
clearance sales
income
Gross domestic product (GDP) is the value of goods and services produced in a country
annually.
It can best be described as measuring an economy's - Answers - total output.
Which of these practices describe how producers in oligopolies generally try to create
competition? Check all that apply. - Answers - by keeping prices low
by offering promotions
by advertising
by cultivating brand loyalty
by overcoming barriers to entry
by developing a specific image
What is one main objective in the study of economics? - Answers - recognizing the
relationship between producers and consumers
Why is the slow growth that can result from a contractionary policy a positive effect? -
Answers - It can increase interest rates.
It can decrease available credit.
It can increase the money supply.
*It can decrease inflation.*
In a competitive market, a computer store offers customers a warranty to help pay for
any future damages. This is an example of - Answers - following a federal regulation.
lowering prices for customers.
*reducing the risk for consumers.*
creating a new or better product.
Which organization created a shared economy? - Answers - European Union
In a mixed market economy, what is a typical way the government can reduce
unemployment? - Answers - *The government can pay for projects to create work.*
The government can control new factories to provide jobs.
The government can create new farm fields to hire workers.
The government can raise taxes to encourage employment.
The graph shows the price of a good compared to the quantity demanded.
,This graph demonstrates how - Answers - the amount produced slightly changes with
the price.
the amount produced greatly changes with the price.
the quantity demanded *changes slightly with the price.*
the quantity demanded changes greatly with the price.
In a free market system, price controls can include both floors and - Answers - ceilings
The graph shows the marginal cost of producing soccer cleats for Sabrina's Soccer.
At which level of production does the company make the most profit? - Answers - *the
first pair of cleats*
the second pair of cleats
the third pair of cleats
the fourth pair of cleats
Which situation is an example of comparative advantage? - Answers - A country
decides to export goods when another country does not.
*A country decides to create goods at half the cost of another country.*
A country decides to grow wheat and when another country raises cattle.
A country decides to invest in technology and another country does not.
Aggregate supply is best described as the - Answers - *total output of all products and
services.*
point of equilibrium.
nation's real gross national product.
excess supply in the market.
When entrepreneurs develop new products, other companies also experience growth
because they - Answers - immediately copy the successful product.
*create many companion products.*
try to develop their own products.
attempt to improve the product.
What is one reason why the government would provide financial assistance to an
entrepreneur? - Answers - to decrease the high rate of failure of new businesses
*to encourage the invention and development of products*
to stimulate the economy while decreasing unemployment
to limit the amount of personal funds used to start the business
Who was Adam Smith? - Answers - *He was a philosopher who promoted the idea of
free enterprise.*
He was an economist who spoke against the market economy.
He was an official who ran an important government agency.
He was a producer who operated a factory in Scotland.
, What do the indicators used by economists reveal? - Answers - *changes in production
and demand*
changes in employment levels
changes in prices
changes in the health of an economy
What new laws did the New York Factory Investigating Commission request? Check all
that apply. - Answers - no factory workers under age ten
use of central air-conditioning systems
a minimum wage for all workers
*increased sanitation standards*
*fire alarms and sprinkler systems*
Which occurs during disequilibrium? Check all that apply. - Answers - Supply and
demand meet.
*Supply is less than demand.*
Supply and demand set prices.
*Supply is greater than demand.*
Supply and demand set production.
When artists pass away, the supply of their paintings most likely becomes . - Answers
- Worthless
*Elastic*
Inelastic
Plentiful
Which best describes how advertising influences consumer choice in an oligopoly? -
Answers - *Advertising coaxes people to buy new products.*
Advertising alerts consumers to price reductions.
Advertising undermines competition.
Advertising informs brand knowledge.
Which are indicators that economists use to measure how an economy grows? Select
all that apply. - Answers - monitoring election results
*measuring how much the economy produces*
monitoring the popularity of different music groups
studying the economy of another country
*tracking the unemployment rate*
The chart shows the marginal cost of producing apple pies.
This chart demonstrates that the marginal cost - Answers - initially decreases as
production increases.
*initially increases as production increases.*
eventually decreases as production increases.
eventually increases as production decreases.
