PLATO EDMENTUM ECONOMICS END OF
SEMESTER TEST PRACTICE SCRIPT
UPDATED 2026 TESTED SOLUTIONS
⫸ GoGo Gas and Fab Fuel are among the few large producers of
gasoline in the country. Along with other large producers, they have
formed a formal organization to control the output and price of gasoline
in that country. What is such an organization called? Answer: cartel
⫸ Which statement is false?
A. A monopoly sells lower-quality products at higher prices than in a
perfect competition.
B. Natural monopolies are necessary to avoid wasteful duplication of
resources.
C. Collusion is legal in the United States, but cartels are not.
D. The start-up costs in a monopolistically competitive industry are low.
E. Homogeneous products leave consumers with no choice. Answer:
Collusion is legal in the United States, but cartels are not.
⫸ Match each economic term with its description. Answer: Monopoly:
There is a single seller in the market.
, Oligopoly: Every company in this market structure is aware of the
actions of the other companies.
Perfect Competition: There are no barriers to entry in the market.
Collusion: Three companies secretly enter into a price agreement.
⫸ When the value of a country's currency falls, the currency is
_____________, so one unit of that currency can buy ___________
units of other currency. Answer: depreciating, fewer
⫸ The United States can produce 200 pillows in one week, while Spain
and France produce 150 and 100 pillows, respectively, in one week. On
the other hand, Spain can produce 10 televisions in one week, while the
United States and France produce only 5 and 4 televisions, respectively.
__________________ has an absolute advantage in producing pillows,
and __________________ has an absolute advantage in producing
televisions. Answer: The United States, Spain
⫸ Match the correct economic term with each scenario. Answer: A
country or individual concentrates all its productive efficiency on
producing limited goods: SPECIALIZATION
Lisa can produce more pens than Tim with the same number of inputs:
ABSOLUTE ADVANTAGE
One unit of currency buys more units of another currency than it did
previously: CURRENCY APPRECIATION
A company contracts with another company to design its website:
OUTSOURCING
SEMESTER TEST PRACTICE SCRIPT
UPDATED 2026 TESTED SOLUTIONS
⫸ GoGo Gas and Fab Fuel are among the few large producers of
gasoline in the country. Along with other large producers, they have
formed a formal organization to control the output and price of gasoline
in that country. What is such an organization called? Answer: cartel
⫸ Which statement is false?
A. A monopoly sells lower-quality products at higher prices than in a
perfect competition.
B. Natural monopolies are necessary to avoid wasteful duplication of
resources.
C. Collusion is legal in the United States, but cartels are not.
D. The start-up costs in a monopolistically competitive industry are low.
E. Homogeneous products leave consumers with no choice. Answer:
Collusion is legal in the United States, but cartels are not.
⫸ Match each economic term with its description. Answer: Monopoly:
There is a single seller in the market.
, Oligopoly: Every company in this market structure is aware of the
actions of the other companies.
Perfect Competition: There are no barriers to entry in the market.
Collusion: Three companies secretly enter into a price agreement.
⫸ When the value of a country's currency falls, the currency is
_____________, so one unit of that currency can buy ___________
units of other currency. Answer: depreciating, fewer
⫸ The United States can produce 200 pillows in one week, while Spain
and France produce 150 and 100 pillows, respectively, in one week. On
the other hand, Spain can produce 10 televisions in one week, while the
United States and France produce only 5 and 4 televisions, respectively.
__________________ has an absolute advantage in producing pillows,
and __________________ has an absolute advantage in producing
televisions. Answer: The United States, Spain
⫸ Match the correct economic term with each scenario. Answer: A
country or individual concentrates all its productive efficiency on
producing limited goods: SPECIALIZATION
Lisa can produce more pens than Tim with the same number of inputs:
ABSOLUTE ADVANTAGE
One unit of currency buys more units of another currency than it did
previously: CURRENCY APPRECIATION
A company contracts with another company to design its website:
OUTSOURCING
