ECONOMICS EXAM Questions and
Answers Graded A+
What is one cause of scarcity? - Correct answer-limited resources
The primary purpose of a conclusion in an informative essay is to - Correct
answer-refer back to the thesis.
Total output is a synonym for - Correct answer-Gross Domestic Product
Which economic indicators are used to measure the global economy? Check all
that apply. - Correct answer-purchasing power parity
trade volumes
gross domestic product
Which organization created a shared economy? - Correct answer-European Union
Corporate taxes are a type of - Correct answer-income tax
Why do most nations use fiat money today? - Correct answer-Governments are
able to exert control over the value of fiat money.
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, Demand-pull inflation occurs when - Correct answer-consumers show an interest
in purchasing more goods.
Economists use GDP to measure - Correct answer-any economic growth or
shrinkage.
What is true of the M1 category of money? - Correct answer-It can be easily
liquidated.
Which is an example of comparative advantage? - Correct answer-A country
decides to grow wheat and when another country raises cattle.
What is one example of a closed economy? - Correct answer-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? -
Correct answer-production cost; opportunity cost
Embargoes, quotas, and standards are tools that countries use - Correct answer-to
punish other countries.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
What is one cause of scarcity? - Correct answer-limited resources
The primary purpose of a conclusion in an informative essay is to - Correct
answer-refer back to the thesis.
Total output is a synonym for - Correct answer-Gross Domestic Product
Which economic indicators are used to measure the global economy? Check all
that apply. - Correct answer-purchasing power parity
trade volumes
gross domestic product
Which organization created a shared economy? - Correct answer-European Union
Corporate taxes are a type of - Correct answer-income tax
Why do most nations use fiat money today? - Correct answer-Governments are
able to exert control over the value of fiat money.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Demand-pull inflation occurs when - Correct answer-consumers show an interest
in purchasing more goods.
Economists use GDP to measure - Correct answer-any economic growth or
shrinkage.
What is true of the M1 category of money? - Correct answer-It can be easily
liquidated.
Which is an example of comparative advantage? - Correct answer-A country
decides to grow wheat and when another country raises cattle.
What is one example of a closed economy? - Correct answer-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? -
Correct answer-production cost; opportunity cost
Embargoes, quotas, and standards are tools that countries use - Correct answer-to
punish other countries.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
