Transcript An individual decides to pay $8.00 to see movie instead of buying

DAILY BELLRINGER
ECONOMICS
END OF COURSE TEST PREPARATION
Each day your should write down the
question and the answer. Keep the
questions at the front of your
notebook. They will be periodically
checked for a quiz grade.
 Please locate your desk based on
your last name.
 We will have assigned seating until
I get to know everyone.
 Thanks for your patience…it won’t
be long.
 You will be grouped shortly.
How do EACH of the following benefit you in your
professional and personal life?
Write down each word and with your team write
one sentence answering the question. Use a specific
job situation.
1.Self-Respect
2.Self-Control
3.Courtesy
4.Respect for others
5.Punctuality
6.Trustworthiness
PERSONAL
FINANCE
What is the central problem with
which the study of economics is
concerned?
a. Scarcity
b. Excess
c. Inflation
d. Monetary policy
The basic underlying premise of
economics is:
a. We need to conserve natural
resources.
b. We need to make sure everyone gets
an education.
c. We need to make sure everyone gets
healthcare.
d. We need to realize our wants are
unlimited but our resources are not.
Jaylyn wants to be a sound engineer but will
have to attend an expensive school. He also
wants a new car. He doesn’t have the money to
do both. If he decides benefits of school will
outweigh the satisfaction he gets driving a new
car, then his BEST rational decision is to:
a. Buy the car.
b. Fix the car he has and invest in school.
c. Avoid using the car as a trade-off.
d. Buy lottery tickets hoping to win enough to do
both.
A good example of the effect of learning and
education on income would be that:
a. Employees who perform high risk jobs are
more than those in low risk jobs.
b. Workers who learn to make high demand
products are paid more than those making low
demand products.
c. Job applicants with good high school grades are
paid more than applicants with low high school
grades.
d. People with college degrees usually are paid
more than those with less education.
Which of the following BEST explains why
surgeons are paid more than construction
workers?
a. Surgeons make more money for a hospital and
are in shorter supply.
b. Surgeons have less education than
construction workers.
c. Surgeons do specialized high demand work
but construction workers do unskilled physical
work.
d. Surgeons work longer hours than construction
workers.
Net Worth
• Is a measure of wealth
• Includes assets and liabilities
• Is a person’s total assets
minus liabilities
• All of the above
Describe what “Economics” means
to you. Give specific examples from
your daily life? Use AT LEAST 5
vocabulary words from this class.
Include definitions
Which factor MOST often has the greatest
role in determining the amount of money
that workers earn during their careers?
a. Their credit worthiness
b. Their education level
c. The location of the business for which
they work
d. The size of the business for which they
work
5 in 5: SUMMARY
Write a paragraph (at least 5
complete sentences)
answering the following:
“I understand the following
about money and financial
institutions..”
On the island of Yap, large circular stones
are used for money. The main reason why
this type of money serves its function as a
medium of exchange is because it is:
A very portable
B highly divisible
C accepted as payment
D prized in foreign transactions
Eric received a $2,000 bonus from his
employer. He deposited the entire amount
in a one-year certificate of deposit with a
simple interest rate of 5%. When the CD
matured, how much interest had Eric
earned?
A $10
B $20
C $50
D $100
Which of the following is true about a
shareholder in a corporation?
A A shareholder is part owner of that
business.
B A shareholder may not share in the
earnings of that corporation.
C A shareholder may not transfer his share
to another party without permission.
D A shareholder is liable for any debts
accumulated by that corporation.
Which of the following will most
likely have the greatest positive effect
on standard of living?
a. Starting work as soon as possible.
b. Wisely investing in the stock market.
c. Never going into debt to buy a house.
d. Investing in higher education.
Quick Write: SUMMARY
1. What are the 4 C’s of
credit and what do
they mean?
2. What do risk, return
and liquidity and how
do these terms relate
to personal finance?
1. What type of insurance is MOST LIKELY
classified into categories such as term, whole,
and variable? Life insurance
2. While credit is all or part of an amount a
borrower MAY use, debt is the amount of
credit that IS used.
3. RETURN is the money an investor receives
above the sum or money initially invested.
4. A BOND is debt that a government or business
must repay an investor.
5. PRINCIPAL is the original amount of money
borrowed or deposited.
Fundamental
Economic
Concepts
SUMMARY
What is the problem that all
countries rich and poor face
and why?
In economics, the term ‘scarcity’ is
defined as a situation in which there
A. Are limited resources but unlimited
wants and needs
B. Are fewer jobs than there are
members of the labor force
C. Is not enough money in a country’s
treasury to pay off its foreign debt
D. Are fewer skilled workers than there
are high-level job openings
Which of the following is a service?
a.
b.
c.
d.
A pair of scissors
A bottle of shampoo
A haircut
A stylist
An assembly-line worker tightens a bolt
on a truck in a truck factory. His action
is an example of which Factor of
Production?
a.
b.
c.
d.
Land
Labor
Transportation
capital
Goods and services are limited.
People’s wants are not. To an
economist, this is
A. a shortage
B. a trade-off
C. Capital
D.Scarcity
Factors of Production include:
a.Land
b.Labor
c. Capital
d.All of the above
In the year 2000, Microsoft founder Bill
Gates was the world’s richest person. The
origins of Gates’ vast financial fortune
stemmed from his
A. Inherited wealth
B. Entrepreneurial skills
C. Experience in human relations
D. Concern for the natural environment
1. What is allocation?
2. Why must some things be allocated?
3. Give an example of something that
must be allocated.
4. List strategies (ways) in which scarce
resources may be allocated.
5. What Economics standard is this?
Mike and Ashley have a car wash business.
Currently, they wash and wax each car by
themselves. The best way to improve their
productivity would be if
a. Mike and Ashley wash and wax each of the cars
together.
b. Mike does all the work on even days and
Ashley does the work on odd days.
c. Mike washes the cars while Ashley waxes
them.
d. Mike works during the mornings while Ashley
works in the afternoon.
Entrepreneurship and labor interact
in which of the following ways?
A. Entrepreneurship makes
decisions about the use of labor.
B. Labor makes decisions about the
use of entrepreneurship.
C. Both entrepreneurship and labor
receive payment in the form of
interest.
D. Both entrepreneurship and labor
receive payments in the form of
rent.
All of the following are
examples of capital EXCEPT:
A.Buildings
B.Machinery
C.Cattle on a farm
D.A hydroelectric power plant
The opportunity cost of going to
college might BEST be described as:
A. The money that must be paid in order to
attend college
B. The lowest valued alternative use of the
student’s time
C. The highest valued alternative use of the
student’s time
D. The value that the student attaches to not
working
Which of the following is NOT
scarce?
A.Iron ore
B.Labor
C.Land
D.Iphone 6
Human capital would include:
A. An employee at Zaxby’s annual
salary
B. A civil engineer’s understanding of
calculus
C. The x-ray machine used in a
doctor’s office
D. The machinery used to weave cloth
Which word BEST completes the following
sentence?
Improvements in ____________ allow an
ecnomy to produce more output from the
same or smaller quantity of inputs.
A. GDP
B. Free enterprise
C. Technology
D. Guns and butter
Which example illustrates the result
of non-fraudulent voluntary
exchange?
a. The government requires people to
purchase insurance.
b. A customer asks for 5 one dollar bills in
exchange for 1 five dollar bill.
c. A man purchased a used lawnmower, but
the owner didn’t mention it was broken.
d. A dentist gets paid for the root canal he
performed on a patient.
Chris has $50. He decides to spend it
on a PS4 game instead of buying a
new Polo shirt. What is the
opportunity cost of Chris’ decision?
a.
b.
c.
d.
The benefit of the new Polo shirt.
The time it took to shop for the game.
The benefit of having $50.
The enjoyment of playing the game.
When a nation produces consumer
products, it cannot produce military
goods. This is referred to as
a.
b.
c.
d.
The ‘infant industry’ argument
A ‘guns versus butter’ decision
‘War versus hawk’ mentality
Opportunity cost
An individual decides to pay $8.00 to
see movie instead of buying an $8.00
meal. What is the opportunity cost of
the movie?
a. The satisfaction missed by not
eating the meal
b. The $8.00 paid to see the movie
c. The time spent watching the movie
d. The satisfaction received by going to
the movie
When a country decides to produce
more military goods, it cannot produce
as many consumer goods. Which term
BEST describes this scenario?
a.
b.
c.
d.
Efficiency
Shortage
Trade-off
Capital
According to the production possibilities
information, the opportunity cost of moving
from point B to point D may be expressed as
a.
b.
c.
d.
2 aircraft carriers.
8 submarines.
4 aircraft carriers.
20 submarines.
Which of the following represents
an investment in capital?
a. Renting a booth at the Flea Market.
b. Advertising on TV
c. Hiring 2 new salespersons
d. Buying new computers
Which of the following is an
example of an investment in
human capital?
• A company builds a new factory.
• A state puts in a new highway.
• A person goes to college.
• A county builds a new school.
Kim works on an automobile
assembly line. Her job illustrates a
production process that relies on:
a.
b.
c.
d.
Autonomous work groups
Team decision making
Quality circles
Division of labor
The payments for land, labor,
capital and entrepreneurial ability
respectively are
A. Rent, profits, wages, and interest
B. Profits, wages, interest, and rent
C. Rent, wages, interest, and profit
D. Wages, rent, profit, and interest
What can you tell about economics and countries from this photo?
Which of the following economic
systems is BEST at providing
incentives to produce?
a. Traditional
b. Command
c. Market
d. Mercantilist
In which economic system does the
government own the means of
production?
A. Traditional
B. Mixed
C. Market
D. Command
The idea that producers make goods
that consumers like and are willing to
pay for is a principle of which of the
following economic systems?
A. Traditional
B. Command
C. Market
D. Socialism
Prices act as signals in the market
because
A. Prices indicate to sellers the types of
goods and services to offer for sale.
B. Prices can determine dividends for
businesses.
C. High prices for goods and services signal
a healthy economy.
D. Entrepreneurs become motivate as
prices rise.
Which statement reflects the role of
prices in a market economy?
a.They signal producers about how to
use scarce resources.
b.They are an obstacle to the efficient
flow of resources.
c.They are mostly determined by the
government to serve public interests.
d.They are generally ignored by
consumers.
QUIZ
Answer the questions on a separate piece of paper.
1. Define demand. Are you part of the market demand
for a football ticket tomorrow night? (10 pts.)
2. Quantity demanded indicates a change in _______.
The effect it has on the demand curve is ________.
(15 pts.)
3. What is elasticity? What 3 factors affect it? (15 pts.)
4. Define the 5 factors that change (shift) demand. Give
an example of 3 of them. (60 pts.)
What basic economic problem do
both higher-income nations and
lower-income nations have in
common?
A. Too many unskilled laborers
B. Lack of capital goods
C. Too much government
D. Scarcity of resources
In the United States, how are public
goods paid for?
A. Private firms collect fees from their
employees.
B. Non-Profit organizations collect
charitable donations from people.
C. The government collects tax
revenues from individuals and
firms.
D. Corporations make profits from
selling goods and services.
In the American economy, the goal of
economic equity is MOST connected
with
a. Giving participants a fair
chance to succeed
b. Restoring laissez-faire
capitalism
c. Creating limits on corporate
profits
d. Subsidizing businesses that
would otherwise fail
ECONOMIC
GOALS AND
VALUES
October 2013
What role does the government fulfill
in the economy when it forces a firm
to clean up pollutants in the river?
a. Providing public goods
b. Protecting property rights
c. Redistributing income
d. Resolving market failures
The market for labor would be
considered the _________ market.
a. Product
b. Factor
c. Wage
d. Monopolistic
When the U.S. government purchases
a submarine from a company, the
government has made a major
transaction in the
A. Factor market
B. Public market
C. Product market
D. Foreign exchange market
Decentralized decision-making
resulting in buyers and sellers freely
engaging in commerce is an example
of a(n)
A. mixed economy.
B. command economy.
C. voluntary exchange.
D. involuntary exchange.
Ashley would like to buy a reliable car for
under $10,000. Jeremy has a reliable car
that he would like to sell for $8,000 to buy
a truck for his business. If Ashley buys
Jeremy's car, the sale is an example of a(n)
A. voluntary, fraudulent exchange.
B. involuntary, fraudulent exchange.
C. voluntary, non-fraudulent exchange.
D. involuntary, non-fraudulent exchange.
Microeconomic
Concepts
What is the unit of study in
microeconomics?
•
•
•
•
Individuals businesses and households
Inflation and deflation
National consumption and expenditures
Imports and exports
When economists refer to ‘demand,’
they mean which of the following?
A. How much satisfaction buyers
receive from a purchase.
B. How much consumers will
purchase at different prices.
C. How much sellers will supply at
a particular price.
D. How much people want the
product if it is free.
Which of the following is an attempt by
a firm to increase the demand for its
product?
A. The imposition of a price ceiling on the
product.
B. An advertising strategy designed to
change consumer tastes and preferences.
C. A marketing strategy to make the good
scarce and therefore more expensive.
D. A production strategy to flood the market
with the good or service.
If the price of peaches goes up at the
grocery store, what will shoppers
MOST LIKELY do?
A. buy all the peaches the store has
B. buy oranges and bananas instead
C. buy more peaches than other kinds of fruit
D. buy canned peaches
Which of the following would NOT
be a determinant of demand?
a. the price of related goods
b. income
c. tastes
d. the prices of the inputs used to
produce the good
An increase in the price of cars is
MOST likely to have which of the
following effects on the market for
tires?
A. It would increase the demand for tires and raise
their price.
B. It would decrease the demand for tires and lower
their price.
C. It would increase the demand for tires and lower
their price.
D. It would decrease the demand for tires and raise
their price
Which of the following is MOST
important for economic growth?
A.Efficient use of resources
B.Ample tax revenues
C. Availability of resources
D.A large labor force
Which of these represents an
investment in capital?
A. Hiring a waitress in your restaurant
B. Advertising on Amazon
C. Buying new computers for your
office
D. Renting land in Columbia County.
Why do businesses and individuals
specialize?
a. To create less work for themselves
b. In order to have trading
opportunities
c. To increase productivity
d. In order to have more inputs
Idaho grows potatoes while Georgia
grows peaches. This production is an
example of
A. economic interdependence
B. regional specialization
C. cooperative markets
D. joint production
If the price of a substitute to good X
increases, then
a. the demand for good X will
increase.
b. the market price of good X will
decrease.
c. the demand for good X will
decrease.
d. the demand for good X will not
change.
What happens when
demand for a good or
service is elastic?
a. If prices changes, demand will change.
b. If price changes, demand will stay the
same.
c. If supply changes, demand will change.
d. If supply changes, demand will stay the
same.
The price of corn went down. What
might be a reason for this?
A. More corn was produced.
B. Bad weather ruined many corn crops.
C. Advertising made more people want corn.
D. Corn farmers wanted to make more money.
Suppose you like banana cream pie made with
vanilla pudding. Assuming all other things are
constant, you notice that the price of bananas is
higher. How would your demand for vanilla
pudding be affected by this?
a. It would decrease.
b.It would increase.
c. It would be unaffected.
d.There is insufficient information given to
answer the question.
If the price of a good is too high in a
market economy and more producers
are attracted to the market,
A. consumers will demand more of the product.
B. the government steps in to regulate the price.
C. sellers will compete to meet consumer
demands.
D. production rates will decrease to lower the
price of a good.
Of the following, which situation would cause
the shift of the supply curve from S1 to S2?
A. The government reduces
subsidies to wheat
farmers.
B. New fertilizers increase
wheat crop yields.
C. Firms exit the wheat
industry.
D. Drought reduces
industry output by 25%
Because it did not rain very much in
the Southeast, the peanut crop was
destroyed. Which of the following
would PROBABLY happen next?
A. The price of peanut butter would go up.
B. More peanuts would be harvested.
C. The price of peanut butter would go
down.
D. More people would eat peanut butter.
The price of peaches goes up at
the grocery store, what will
shoppers MOST LIKELY do?
A. buy all the peaches the store has
B. buy oranges and bananas instead
C. buy more peaches than other kinds of
fruit
D. buy canned tuna
A price floor can be characterized by:
DRAW IT!!!!
A. A price below equilibrium; creating a
shortage.
B. A price above equilibrium; creating a
surplus.
C. A price below equilibrium; creating a
surplus.
D. A price above equilibrium.
Freezing weather in Florida ruined
much of the orange crop one year.
What happened to the price of orange
juice?
A. It went down a lot.
B. It went down a little.
C. It went up.
D. It did not change.
The minimum wage is a type
of
a.Price floor
b.Comparable worth
c. Price ceiling
d.Marginal Price
A market dominated by a single seller
would be considered a(n) _________.
a. Oligopoly
b. Monopoly
c. Perfect Competition
d. Monopolistic Competition
Which market structure is characterized
by many firms with no control over
price and identical products?
a. Oligopoly
b. Monopoly
c. Monopolistic Competition
d. Perfect Competition
The overwhelming majority of
American businesses are:
a. Silent partnerships
b. General partnerships
c. Corporations
d. Sole proprietorships
Macroeconomic
Concepts
What is a primary
macroeconomic goal?
a.Full employment
b.Low inflation
c. Economic growth
d.All of the above.
Which of the following is a
component of GDP?
a. Tight money policy
b.Reserve requirement
c. Personal income tax
d.Government expenditures
GDP CAN BE CALCULATED BY ADDING TOGETHER
CONSUMER SPENDING, INVESTMENT SPENDING,
GOVERNMENT SPENDING, AND NET EXPORTS. IN
THE PAST 25 YEARS, WHAT COMPONENT HAS
CONSISTENTLYT BEEN A NEGATIVE NUMBER?
a.
b.
c.
d.
Net Exports
Consumer Expenditures
Investment Expenditures
Government Expenditures
Why is low unemployment a
macroeconomic goal?
a. It means the price of good and services will
be stable over the long term.
b. It means all available resources are being
used to fuel the economy.
c. It means that stability is achieved by
investing in human consumption.
d. It means the government has to guarantee
fair regulations on inflation.
Which economic indicator
describes a general increase in
prices across the economy?
a. Deflation
b.Inflation
c. Gross Domestic Product
d.Unemployment
Which of the following is MOST
important for economic growth?
a. efficient use of resources
b.ample tax revenues
c. availability of resources
d.a large labor force
The field of economics that studies
government efforts to influence the
national economy is best known as
a. Microeconomics
b. Monetary policy
c. Macroeconomics
d. Fiscal policy
Aggregate supply is the relation
between real production and
a. Scarcity
b.The price level
c. Foreign trade
d.The exchange rate
A decrease in consumption and a
leftward shift of the AD curve is most
likely caused by:
a. An increase in interest rates
b. A reduced savings rate
c. A decrease in taxes
d. Expectations of rising
inflation
Which of the following is MOST likely
to cause real GDP to increase in the
United States?
a.
b.
c.
d.
An increase in interest rates
An increase in the value of the dollar
An increase in worker productivity
An increase in retirement rate among
United States workers
If inflation and fluctuations of
economic activity are avoided, then
the economy is better achieving the
goal of:
a. Full employment
b. Stability
c. Growth
d. Efficiency
Which is most likely to lead to
inflation?
a. An increase in the costs of production
b. Reduced prices for goods and services
c. An increase in the aggregate supply of
goods and services
d. The application of price ceilings
When aggregate demand exceeds
aggregate supply in an economy, the
MOST immediate result is
a. Inflation
b. Deflation
c. Unemployment
d. A budgetary surplus
A market basket of consumer goods
purchased in 2010 cost $172. What is
the cost of a market basket of
consumer goods in the base year?
a.
b.
c.
d.
$72
$100
$136
$152
Which of the following describes
a period of slow economic
growth that also has inflation?
a. Scarcity
b.Stagflation
c. Monopoly
d.Unemployment
READ!!!! IMPORTANT INFORMATION
•QUIZ on Friday - Chapter 16 AND EOCT Study Guide
(orange book) Domain III (pages 40-50).
•Bring your guided reading graphic organizer AND
orange review book for the quiz.
•No, you will not be allowed to go get it if it is not with
you in class.
•Less than 3 weeks until the EOCT…are you ready? If
you are tardy or absent, you will NOT be prepared.
•You will receive a progress report this week. Are YOU in
danger of failing?
•Tutoring after school Today and Tomorrow and next
week Wednesday and Thursday.
The recurring, but not necessarily
periodic changes in aggregate
economic activity are termed
a. Annual trends
b. Business cycles
c. Consumer cycles
d. Seasonal fluctuations
Which phase of the business cycle
is marked by increased production
and rising employment?
a.
b.
c.
d.
Depression
Expansion
Recession
Contraction
What is another term for
expansion in the business
cycle?
a.Trough
b.Recession
c. Downturn
d.recovery
If 135 million of a labor force of 150
million are employed, the
unemployment rate is
a. 15%
b. 1%
c. 10%
d. 5%
The BEST example of structural
unemployment in an economy is
someone
a. between jobs or entering the work force
b. out of work due to a change in the
business cycle
c. out of work due to a seasonal downturn
in business
d. whose job skills do not match the
economy’s needs
Identify a fiscal policy designed to
stimulate economic growth?
A. Increasing government spending
by Congress
B. Increasing personal income taxes
C. Decreasing government
spending by Congress
D. Selling government securities to
taxpayers