FBLA Economics Objective Test
Questions and Answers 100% Pass
As supply decreases and demand decreases, what effect does this have on equilibrium
price and quantity? - ✔✔Price indeterminant, quantity decreases
Which of the following would all decrease supply? - ✔✔Higher business taxes, higher
resource costs, fewer suppliers
Suppose a price floor is placed on wheat, what is the likely effect? - ✔✔A surplus
Suppose a binding price ceiling is placed on gasoline, what is the likely effect? - ✔✔A
shortage
A supply increase will - ✔✔a decrease in equilibrium price
An equal increase in demand and supply will always result in an increase in the market
price. - ✔✔False
Comparative advantage argues that if two countries specialize and engage in free trade
- ✔✔they will both gain
Katelyn Whitman, All Rights Reserved © 2025 1
, The appreciation of the yen versus the dollar means a vacation for Japanese tourists
coming to the United States is - ✔✔cheaper
The appreciation of the yen versus the dollar means the value of the dollar has -
✔✔depreciated
Monetary policy to fight demand-pull inflation would - ✔✔increase reserve
requirement, raise discount rate, and buy government securities
Government borrowing that leads to less private borrowing and investing is called -
✔✔crowding out effect
A fiscal policy to fight demand-pull infaltion would - ✔✔raise taxes
A recession caused by too little aggregiate demand would require which of the
following policies? - ✔✔expansionary fiscal policy
Suppose $200 cash is deposited in a bank and the reserve requirement ratio is 10%. How
much can demand deposits expand? - ✔✔$1,800
Suppose $200 cash is deposited in a bank and the reserve requirement ratio is 10%.
What is considered the excess reserves? - ✔✔$180
Suppose $200 cash is deposited in a bank and the reserve requirement ratio is 10%.
What is considered required reserves? - ✔✔$20
In competitive markets, the long-run economic profit is - ✔✔zero
Katelyn Whitman, All Rights Reserved © 2025 2
Questions and Answers 100% Pass
As supply decreases and demand decreases, what effect does this have on equilibrium
price and quantity? - ✔✔Price indeterminant, quantity decreases
Which of the following would all decrease supply? - ✔✔Higher business taxes, higher
resource costs, fewer suppliers
Suppose a price floor is placed on wheat, what is the likely effect? - ✔✔A surplus
Suppose a binding price ceiling is placed on gasoline, what is the likely effect? - ✔✔A
shortage
A supply increase will - ✔✔a decrease in equilibrium price
An equal increase in demand and supply will always result in an increase in the market
price. - ✔✔False
Comparative advantage argues that if two countries specialize and engage in free trade
- ✔✔they will both gain
Katelyn Whitman, All Rights Reserved © 2025 1
, The appreciation of the yen versus the dollar means a vacation for Japanese tourists
coming to the United States is - ✔✔cheaper
The appreciation of the yen versus the dollar means the value of the dollar has -
✔✔depreciated
Monetary policy to fight demand-pull inflation would - ✔✔increase reserve
requirement, raise discount rate, and buy government securities
Government borrowing that leads to less private borrowing and investing is called -
✔✔crowding out effect
A fiscal policy to fight demand-pull infaltion would - ✔✔raise taxes
A recession caused by too little aggregiate demand would require which of the
following policies? - ✔✔expansionary fiscal policy
Suppose $200 cash is deposited in a bank and the reserve requirement ratio is 10%. How
much can demand deposits expand? - ✔✔$1,800
Suppose $200 cash is deposited in a bank and the reserve requirement ratio is 10%.
What is considered the excess reserves? - ✔✔$180
Suppose $200 cash is deposited in a bank and the reserve requirement ratio is 10%.
What is considered required reserves? - ✔✔$20
In competitive markets, the long-run economic profit is - ✔✔zero
Katelyn Whitman, All Rights Reserved © 2025 2
