HONORS ECONOMICS MID TERM
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. The study of how people try to satisfy their needs and wants is
____ 2. People with all their efforts, abilities, and skills are categorized as
____ 3. Condition of not having enough resources to produce all the things people want
____ 4. Worth that can be expressed in dollars and cents
____ 5. Item that is economically useful or that satisfies an economic want
____ 6. Alternative choices made by consumers in the marketplace
____ 7. Quality of life based on the possession of the necessities and luxuries that make life easier
____ 8. Sum of those economic products that are tangible, scarce, useful, and transferable
____ 9. Cost of the next best alternative use of money, time, or resources when one choice is made rather than another
____ 10. Tools, equipment, machinery, and factors used in the production of goods and services
____ 11. The situation in which some necessities have little value while some non-necessities have a much higher value is known as
____ 12. Manufactured goods needed to produce other goods and services are called
____ 14. The study of economics is important because it enables us to
____ 15. Economist Adam Smith wrote “The Wealth of Nations” that talked about
____ 16. Diagram representing various combinations of goods and/or services that an economy can produce when all productive resources are fully employed
____ 17. The dollar value of all final goods and services and the most comprehensive measure of a country’s total prodcution output is
____ 18. The purpose of the government in a command economy is to
____ 19. An example of a market economy is
____ 20. Economy in which a central authority makes most of the WHAT, HOW, AND FOR WHOM decisions
____ 21. Act of buyers and sellers freely and willingly engaging in market transactions
____ 22. Federal program of disability and retirement benefits that covers most working people
____ 23. Market economy in which private citizens own the factors of production
____ 24. Which group of people ultimately determines the products that a free enterprise economy produces?
____ 25. The United States can best be described as having a
____ 27. The minimum wage is an example of a federal law that supports
____ 28. The government’s role in a mixed economy is that it is the
____ 29. A rise in the general level of prices is called _________________
____ 30. A market economy
____ 31. Business owned by one person is a
____ 32. A form of business organization recognized by law as a separate legal entity having all the rights of an individual
____ 33. A corporation that has manufacturing or service operations in a number of countries
____ 34. An organization of workers formed to represent its members interests in various employment matters is a
____ 35. The money that you borrow is called the
____ 36. The price you pay for borrowing other peoples money is the
____ 37. A merger of corporations involved in different steps of manufacturing or marketing is known as a
____ 38. This government department regulates the sale of stock in a corporation
____ 39. The local chamber of commerce works to
____ 41. When a company sells stock for the first time it is called their
____ 42. Negotiation by a labor union with management over issues is called
____ 43. A payment to a stockholder that represents a portion of the corporate earnings is called a
____ 44. An advantage of a corporation is that
____ 45. A condition of limited resources combined with unlimited wants
____ 46. A firm that has at least 4 businesses, each making unrelated products, none of which is responsible for a majority of its sales
____ 47. When two corporations that produce the same kind of product merge, it is known as a(an)
____ 48. The most important people in our economy are those that take risks and try to open their own businesses, these people are called
____ 49. A popular model used to illustrate the concept of opportunity cost (we saw a video about rabbits and berries) is called a
____ 50. What is the acronym for the four factors of production
____ 51. The field of economics that deals with behavior and decision making by small units(trees)
____ 53. Peanut butter and jelly are examples of
____ 54. Coke and Pepsi are examples of
____ 55. Desire, ability, and willingness to buy a product is callled
____ 56. When we measure how demand changes in reference to a change in price we are measuring
____ 57. Law of Demand says when price goes up demand goes
____ 58. The Law of Supply says when price goes up supply goes
____ 59. Macroeconomics is a study of the
____ 60. The most powerful woman in the world is
____ 61. A change in price that causes a larger change in demand is
____ 62. My wife raised her prices by 20% and lost 10% of her customers will she
____ 63. People most affected by inflation are those on a
____ 64. An increase in the price of Pepsi causes a increase in the demand for Coke, they are
____ 65. A demand curve that is relatively flat represents demand that is
____ 67. When will people search for more substitutes for oil
____ 68. If the price of cars falls, carmakers will make
____ 69. If you are bidding on EBAY for an item, who are you competing against?
____ 70. When the price of Apple computers goes down, the demand for Windows computers goes
____ 71. If everyone thinks the price of oil is going up next month, what will happen to the demand for oil today
____ 72. Do taxes increase or decrease the supply of a good?
____ 73. Do subsidies increase or decrease the supply of a good?
____ 74. Total revenue is marginal revenue times total product
____ 75. When demand increases what happens to price and quantity in equilibrium?
____ 76. When supply increases what happens to price and quantity in equilibrium?
____ 77. If we learn today about new future sources of energy, the price of oil today will_________and the quantity supplied will______________
____ 78. Which of the following goods would have the most inelastic demand?
____ 80. An option to sell a financial commodity is a
____ 81. The cost of buying an option is called the
____ 82. Betting against a stock, bond, currency is called
____ 83. LTV stands for
____ 84. How much more is costs to produce one addtitional unit is called
____ 85. If marginal product is getting larger with the next employee we are in the
____ 86. A good example of a fixed cost would be
____ 87. Sugar is
____ 88. Mr. A’s roommate adopted three children from
____ 89. In Freakonomics they tried to prove that the decrease in crime in the 90’s was caused by
____ 90. Feeding corn to animals makes them
____ 91. The best way to have great health is to
____ 92. Drinking soda, especially diet soda is
____ 94. In Freakonomics, were they able to get students to greatly improve their grades for $50 a month?
____ 95. In Freakonomics they proved that giving your child a more ethnic name
____ 96. Scrap the Cap has to do with
____ 97. Regulations that were passed after the Great Depression to curb Wall Street risk
____ 98. Cutting taxes and regulations are all typical policy recommendations of
____ 99. True or False-ObamaCare is bad but the Affordable Care Act is good
