FLVS Economics Segment Exam A
UPDATED Exam Questions and
CORRECT Answers
Which of the following best describes the concept of "equilibrium price"? - CORRECT
ANSWER- Both sellers and buyers are happy with the price and quantity.
United States paper money is backed by - CORRECT ANSWER- public and government
acceptance
You have to choose between playing a team sport or taking music lessons because the
practices overlap. This choice demonstrates that - CORRECT ANSWER- time is scarce
An increase in the number of bakeries in an area would most likely cause what change to the
supply of baked goods? - CORRECT ANSWER- Increase in the supply of baked goods
Sam works as a transcriptionist for $30,000 per year, and Janet works as a jet propulsion
specialist for $73,000 per year. Which of the following statements could best explain the
disparity in their incomes? - CORRECT ANSWER- Janet's expertise is in low supply and
high demand.
Kavan runs a small shoe company. He recently invested in a large supply of purple clogs,
which he sells for $80 a pair. One night, a popular comedy show makes fun of people who
wear purple clogs. How will this affect Kavan's clog sales? - CORRECT ANSWER- Demand
for the clogs will decrease, and market price will decrease.
Rose decides she wants to begin her own business, marketing toward online game players.
Which of the following best answers the economic question What to produce? - CORRECT
ANSWER- Paint Spacegame Online character portraits to sell on her website
Which situation illustrates the basic economic questions? - CORRECT ANSWER- Your
friend bakes cookies with ingredients specified by a recipe and sells them to neighbors.
,"Don't buy food with the ingredient MSG; it causes cancer in lab rats." This advertisement
targets your - CORRECT ANSWER- fears
Which of the following is the most profitable investment for a cell phone company earning
$10 per plan contract? - CORRECT ANSWER- Creating television commercial at $25 daily
operating cost, generating 15 new plans per day
Why might a neurosurgeon receive a higher wage than a nail technician? - CORRECT
ANSWER- There are fewer neurosurgeons than nail technicians.
Which economic advantages does the United States have compared to other nations? -
CORRECT ANSWER- Expansive territory, fertile farmland
A popular toy, which is made in China and sold in the United States by a well-known toy
company, is found to have a toxic chemical in the paint. Why might it be important to
establish a trade barrier in this case? - CORRECT ANSWER- To restore consumer
confidence
An indicator of steady economic growth is a - CORRECT ANSWER- low inflation rate
Which of these results from inflation in the United States? - CORRECT ANSWER- Investors
buy products in other countries
In a market economy, who determines what to produce? - CORRECT ANSWER- Individuals
Which of these sets of characteristics would most likely belong to a developed country rather
than a developing country? - CORRECT ANSWER- Market economy; per capita income:
$28,930; human development ranking: 8th
Keynes would most likely oppose a plan for - CORRECT ANSWER- government control of
all the manufacturing companies
With which of these statements would Adam Smith agree? - CORRECT ANSWER- The
people, not the government, can best determine the structure of the economy
, Sofia, who lives in Chicago, knits and sells alpaca-wool scarves. She spends 15 hours
knitting one scarf. Maria, who also knits, lives in Lima, Peru. She spends 12 hours knitting
one scarf. Which of these statements is true? - CORRECT ANSWER- Maria has an absolute
advantage over Sofia
Which situation would cause an increase in the overall supply of books? - CORRECT
ANSWER- A decrease in the price of book-binding glue
Andy's two nephews want to travel to Philadelphia with him to see a show. Andy has two free
plane tickets and three tickets to the show. Which of the following best describes the two
plane tickets? - CORRECT ANSWER- A scarce resource
When price increases, quantity supplied - CORRECT ANSWER- increases
Which of the following best addresses the economic question How to produce? - CORRECT
ANSWER- Zara uses manufacturers in Turkey to make high-fashion clothing.
When "bell-bottom" pants became fashionable in the 1970s, the demand curve for bell-
bottoms - CORRECT ANSWER- shifted to the right
Which scenario best demonstrates the function of money as a measure of value? - CORRECT
ANSWER- Sharad decides to offer his services as a typist. He asks for $3 per page. A new
client prefers to pay $2 per page. They settle on $2.50 per page.
A doctor at Boston University partnered with a professor at Northeastern University to create
a virtual support program for patients recently discharged from the hospital. How would they
answer the economic questions For whom to produce? and What to produce? - CORRECT
ANSWER- Patients and a virtual support program
Your friend says your car is worth about 50 dollars. Your friend is using money as a -
CORRECT ANSWER- measure of value
imothy, a cashier, is given a twenty-dollar bill at his store. He is suspicious of the customer
and wants to make sure the currency is real. Which would be a clue that the currency is
counterfeit? - CORRECT ANSWER- There is no change in the color of the bill's ink.
UPDATED Exam Questions and
CORRECT Answers
Which of the following best describes the concept of "equilibrium price"? - CORRECT
ANSWER- Both sellers and buyers are happy with the price and quantity.
United States paper money is backed by - CORRECT ANSWER- public and government
acceptance
You have to choose between playing a team sport or taking music lessons because the
practices overlap. This choice demonstrates that - CORRECT ANSWER- time is scarce
An increase in the number of bakeries in an area would most likely cause what change to the
supply of baked goods? - CORRECT ANSWER- Increase in the supply of baked goods
Sam works as a transcriptionist for $30,000 per year, and Janet works as a jet propulsion
specialist for $73,000 per year. Which of the following statements could best explain the
disparity in their incomes? - CORRECT ANSWER- Janet's expertise is in low supply and
high demand.
Kavan runs a small shoe company. He recently invested in a large supply of purple clogs,
which he sells for $80 a pair. One night, a popular comedy show makes fun of people who
wear purple clogs. How will this affect Kavan's clog sales? - CORRECT ANSWER- Demand
for the clogs will decrease, and market price will decrease.
Rose decides she wants to begin her own business, marketing toward online game players.
Which of the following best answers the economic question What to produce? - CORRECT
ANSWER- Paint Spacegame Online character portraits to sell on her website
Which situation illustrates the basic economic questions? - CORRECT ANSWER- Your
friend bakes cookies with ingredients specified by a recipe and sells them to neighbors.
,"Don't buy food with the ingredient MSG; it causes cancer in lab rats." This advertisement
targets your - CORRECT ANSWER- fears
Which of the following is the most profitable investment for a cell phone company earning
$10 per plan contract? - CORRECT ANSWER- Creating television commercial at $25 daily
operating cost, generating 15 new plans per day
Why might a neurosurgeon receive a higher wage than a nail technician? - CORRECT
ANSWER- There are fewer neurosurgeons than nail technicians.
Which economic advantages does the United States have compared to other nations? -
CORRECT ANSWER- Expansive territory, fertile farmland
A popular toy, which is made in China and sold in the United States by a well-known toy
company, is found to have a toxic chemical in the paint. Why might it be important to
establish a trade barrier in this case? - CORRECT ANSWER- To restore consumer
confidence
An indicator of steady economic growth is a - CORRECT ANSWER- low inflation rate
Which of these results from inflation in the United States? - CORRECT ANSWER- Investors
buy products in other countries
In a market economy, who determines what to produce? - CORRECT ANSWER- Individuals
Which of these sets of characteristics would most likely belong to a developed country rather
than a developing country? - CORRECT ANSWER- Market economy; per capita income:
$28,930; human development ranking: 8th
Keynes would most likely oppose a plan for - CORRECT ANSWER- government control of
all the manufacturing companies
With which of these statements would Adam Smith agree? - CORRECT ANSWER- The
people, not the government, can best determine the structure of the economy
, Sofia, who lives in Chicago, knits and sells alpaca-wool scarves. She spends 15 hours
knitting one scarf. Maria, who also knits, lives in Lima, Peru. She spends 12 hours knitting
one scarf. Which of these statements is true? - CORRECT ANSWER- Maria has an absolute
advantage over Sofia
Which situation would cause an increase in the overall supply of books? - CORRECT
ANSWER- A decrease in the price of book-binding glue
Andy's two nephews want to travel to Philadelphia with him to see a show. Andy has two free
plane tickets and three tickets to the show. Which of the following best describes the two
plane tickets? - CORRECT ANSWER- A scarce resource
When price increases, quantity supplied - CORRECT ANSWER- increases
Which of the following best addresses the economic question How to produce? - CORRECT
ANSWER- Zara uses manufacturers in Turkey to make high-fashion clothing.
When "bell-bottom" pants became fashionable in the 1970s, the demand curve for bell-
bottoms - CORRECT ANSWER- shifted to the right
Which scenario best demonstrates the function of money as a measure of value? - CORRECT
ANSWER- Sharad decides to offer his services as a typist. He asks for $3 per page. A new
client prefers to pay $2 per page. They settle on $2.50 per page.
A doctor at Boston University partnered with a professor at Northeastern University to create
a virtual support program for patients recently discharged from the hospital. How would they
answer the economic questions For whom to produce? and What to produce? - CORRECT
ANSWER- Patients and a virtual support program
Your friend says your car is worth about 50 dollars. Your friend is using money as a -
CORRECT ANSWER- measure of value
imothy, a cashier, is given a twenty-dollar bill at his store. He is suspicious of the customer
and wants to make sure the currency is real. Which would be a clue that the currency is
counterfeit? - CORRECT ANSWER- There is no change in the color of the bill's ink.
