Principles of Economics Exam
Questions with Answers
What is one cause of scarcity? - ✔✔limited resources
The primary purpose of a conclusion in an informative essay is to - ✔✔refer back to the thesis.
Total output is a synonym for - ✔✔Gross Domestic Product
Which economic indicators are used to measure the global economy? Check all that apply. -
✔✔purchasing power parity
trade volumes
gross domestic product
Which organization created a shared economy? - ✔✔European Union
Corporate taxes are a type of - ✔✔income tax
Why do most nations use fiat money today? - ✔✔Governments are able to exert control over
the value of fiat money.
Demand-pull inflation occurs when - ✔✔consumers show an interest in purchasing more goods.
Economists use GDP to measure - ✔✔any economic growth or shrinkage.
What is true of the M1 category of money? - ✔✔It can be easily liquidated.
, Which is an example of comparative advantage? - ✔✔A country decides to grow wheat and
when another country raises cattle.
What is one example of a closed economy? - ✔✔a restricted system that blocks trade with
international partners
It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue
production of shirts to focus on jeans. The $15 and discontinuation of shirt production are
represented by which of the following sets of terms? - ✔✔production cost; opportunity cost
Embargoes, quotas, and standards are tools that countries use - ✔✔to punish other countries.
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 - ✔✔total output
Jacob is considering buying a new car. Which nonrenewable resource should influence the
decision? - ✔✔petroleum
Read the format of an outline for an informative essay.
1. _____________________
A. Thesis statement
2. Subtopic body sentence
A. Evidence
B. Evidence
3. Subtopic body sentence
A. Evidence
Questions with Answers
What is one cause of scarcity? - ✔✔limited resources
The primary purpose of a conclusion in an informative essay is to - ✔✔refer back to the thesis.
Total output is a synonym for - ✔✔Gross Domestic Product
Which economic indicators are used to measure the global economy? Check all that apply. -
✔✔purchasing power parity
trade volumes
gross domestic product
Which organization created a shared economy? - ✔✔European Union
Corporate taxes are a type of - ✔✔income tax
Why do most nations use fiat money today? - ✔✔Governments are able to exert control over
the value of fiat money.
Demand-pull inflation occurs when - ✔✔consumers show an interest in purchasing more goods.
Economists use GDP to measure - ✔✔any economic growth or shrinkage.
What is true of the M1 category of money? - ✔✔It can be easily liquidated.
, Which is an example of comparative advantage? - ✔✔A country decides to grow wheat and
when another country raises cattle.
What is one example of a closed economy? - ✔✔a restricted system that blocks trade with
international partners
It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue
production of shirts to focus on jeans. The $15 and discontinuation of shirt production are
represented by which of the following sets of terms? - ✔✔production cost; opportunity cost
Embargoes, quotas, and standards are tools that countries use - ✔✔to punish other countries.
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 - ✔✔total output
Jacob is considering buying a new car. Which nonrenewable resource should influence the
decision? - ✔✔petroleum
Read the format of an outline for an informative essay.
1. _____________________
A. Thesis statement
2. Subtopic body sentence
A. Evidence
B. Evidence
3. Subtopic body sentence
A. Evidence
