VirtualSC Economics Honors Practice Exam

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• What type of advantage do countries gain through an efficient use of their resources?
• Scarcity is best defined as which of the following?
• In a traditional economy, how are transactions generally shaped?
• Savings and checking accounts at a credit union are usually referred to as what?
• What is defined as the added benefit from producing one additional unit?
• In economic terms, what does GDP represent?
• What does the term 'efficiency' refer to in economic production?
• What is typically the interest rate scenario with credit cards compared to loans?
• A government banning trade with a country that uses child labor to produce goods would be done on the basis of _____ .
• How does the state of the economy affect a person's ability to repay debt?
• The concept of elasticity refers to the responsiveness of _____ to changes in price.
• Without government regulations, the equilibrium price is established _____ .
• Credit unions are owned by which of the following?
• What kind of economy offers the same wage no matter how productive a person is?
• Which of the following best describes resources that are underutilized?
• What is the financial ability to repay a loan with present income called?
• Which of the following is an example of capital?
• What occurs when workers are replaced by machines or computer systems?
• True or False: The security of data is extremely important, creating high demand for information security workers.
• What does a trade-off in economics essentially involve?
• Is Social Security tax considered an optional deduction from your paycheck?
• True or False: Marginal analysis can help parents decide whether to return to work after having a child.
• In a command economy, prices may be determined by _____.
• Which market characteristic typically leads to innovation and product variety?
• What financial term describes a set goal for spending or saving money?
• What is the primary benefit of trade between nations?
• Which of the following is a benefit of international specialization?
• Scarcity in economics means:
• How would you characterize an economy utilizing its resources to maximize production?
• When there is a surplus of goods in the market, what happens to prices?
• What typically happens at a price above the equilibrium price?
• If eating one piece of cake yields a total utility of 50 and the second piece increases it by 10, what is the total utility of eating two pieces?
• What does the transition from Point B to Point D represent?
• Which factor can cause a leftward shift in the supply curve?
• Which of the following would be an example of complementary goods?
• Which economic principle suggests that as a consumer buys more of a product, the additional satisfaction decreases?
• What term describes the next best alternative that is not chosen when a decision is made?
• Which statement about economic growth is true?
• The argument(s) against closed economies and government intervention is/are _____ .
• How does a traditional economy typically resolve conflicts in resource allocation?
• What does Canada's choice to invest in high-speed rail over a new university illustrate?
• What does the formula I = P x R x T calculate?
• Countries will export goods and services they can produce at lower opportunity cost. This is called ____ .
• Which of the following factors can lead to a rightward shift in the demand curve?
• What is the term for the next best alternative not chosen when making a decision?
• Which of the following products has inelastic demand?
• What determines the equilibrium price in a market?
• In a perfectly competitive market, what is the per-unit price of apples if the data indicates a price of $4?
• What is the real income increase of an employee who received a 5% raise in a year with 3% inflation?
• Which term describes the maximum price that a seller is willing to receive for a good or service?
• Which type of unemployment is primarily associated with fluctuations in the economic cycle?
• Which program is designed to provide healthcare assistance to the elderly and disabled?
• What is a key feature of an oligopoly market structure?
• There is usually not enough lead time for a government to immediately respond and offset an impending recession due to various lags. True or False?
• Which part of the market determines supply?
• Which is an example of a quota _____ .
• Which situation is least likely to benefit from marginal analysis?
• What is the first step in constructing a price index?
• An economy operating on its production possibilities curve is characterized by which of the following?
• How many distinct factors of production do economists recognize?
• Which type of account is recommended for starting to build credit?
• Fractional reserve banking means that banks are required to _____ .
• Which of the following is a consequence of scarcity?
• The more often interest is compounded, what is the effect on your interest earnings?
• What factor is likely to result in a change in the production possibilities frontier?
• In 1962, the US prohibited all imports and exports from Cuba. This is called a(n) _____ .
• Expansionary fiscal policy is when the government _____ .
• A decrease in supply can be noted by observing what in a market graph?
• All of the following are considered automatic stabilizers except _____ .
• Which of the following would NOT be included in the calculation of GDP?
• According to the Law of Supply, what happens to an item as its price increases?
• Which economic concept describes the situation where trading partners specialize in different produce?
• In monopolistic competition, the products are distinguished mainly through what?
• The Law of Supply states that price and quantity supplied have a direct relationship. This statement is:
• The Congress lowered taxes to aid in the recovery of a recession. This is an example of _____ .
• Why do trading partners rely on each other?
• What does Point B signify in a production possibilities context?
• What best defines the market equilibrium price?
• What is another name for excess supply?
• People who want to shelter domestic producers from foreign competition with tariffs, quotas, and other trade barriers are referred to as _____ .
• What does Point A indicate in the production possibilities curve?
• How many companies typically dominate an oligopoly?
• What type of goods do underdeveloped nations typically trade in?
• With trade, countries are able to consume beyond their Production Possibilities Curve (PPC). This statement is _____.
• Which of the following is an example of marginal analysis?
• What is one pitfall of credit cards?
• What is the formula for calculating gross pay?
• What are programs that automatically adjust benefits in response to economic changes called?
• Why do nations trade?
• Which factor of production is involved in taking risks and combining resources?
• Economics is best defined as the study of how societies deal with which of the following?
• What term describes the movement of American jobs overseas?
• What is the term for the amount of money you take home after deductions?
• A change in consumer tastes and preferences will have what effect on the demand curve?
• Which term describes the limits placed on the quantity of a product that can be imported into a country?
• What is a common benefit offered by employers regarding 401(k) plans?
• Which career field has seen significant demand due to changes in the population?
• What does Point C represent in the production possibilities curve?
• What explains why nations must trade?
• How is marginal analysis best described?
• The point where quantity demanded and quantity supplied is equal is called what?
• What analysis is most helpful for deciding whether an action is worth the cost?
• What does Point E represent in economic terms?
• In the Circular Flow model, what role do individuals and households play?
• Which event would shift the short-run supply curve for strawberries?
• What is a likely outcome when more suppliers enter a market?
• As a consequence of scarcity, what is a common economic principle?
• What is it called when people, businesses, and nations depend on each other for needs and wants?
• If an employee works 30 hours with an hourly wage rate of $12, what would be the employee's net pay?
• Is it legal for firms to fix prices together in oligopolistic markets?
• What is a common benefit of joining a credit union?
• Which of the following is NOT a benefit of trade?
• What primarily causes a change in the quantity demanded?
• According to the Law of Demand, what relationship exists between price and quantity demanded?
• When employing marginal analysis, what should a decision-maker prioritize?
• What type of unemployment is caused by technological changes in the market?
• The process by which economies all over the world are becoming interconnected is known as _____ .
• What is a graph showing all possible combinations of goods and services produced with society's resources called?
• What is the primary purpose of investing money?
• What is a good first step to establish credit?
• What is the basic purpose of the consumer price index (CPI)?
• If the price of apples falls from $0.80 to $0.65 per pound, what will happen?
• What factor contributes to the increased demand for healthcare workers in the U.S.?
• Is collusion or price fixing legal in the United States?
• Which is a defining characteristic of a monopolistic market?
• In a mixed economy, what is true about firms?
• What is an essential factor in achieving a financial goal?
• Which statement best describes trade between two nations?
• What does marginal cost refer to?
• Why is interdependence essential in trade?
• What is typically a result of implementing a price floor on a good?
• What is a key characteristic of a command economy?
• What does Point X in a production possibilities curve identify?
• What can be a consequence of excessive reliance on one trading partner?
• What is the primary reason that structural unemployment is particularly challenging to remedy?
• What does a high inflation rate typically signify about an economy?
• What does an outward shift of the production possibilities curve represent?
• True or False: There is always some degree of government involvement in a mixed economy.
• What effect does trade liberalization typically have on consumer prices?
• If you are earning 8% on your investment, how many years will it take to double your money?
• Which economic measure reflects the total market value of all final goods and services produced in a country?
• Which of the following is included in the unemployment rate?
• What is the term for the financial growth measures before adjusting for inflation?
• If the economy is in an inflationary period, the government should _____ .
• What occurs when an economy operates efficiently on its production possibilities curve?
• If demand for a good increases, what typically happens to the price and quantity of that good?
• Is inflation taken into account when calculating Nominal GDP?
• In the context of economic systems, what does "scarcity" refer to?
• In economic terms, which of the following represents the value of the next best alternative that is given up?
• Which of the following is defined as something a person intends to achieve in less than one year?
• Which of the following best defines total utility?
• Which of the following represents product differentiation?
• In a mixed economy, which statement is accurate?
• What does having an absolute advantage mean for a country in terms of production?
• In economics, what does the term marginal refer to?
• If the demand for potatoes increases whenever a person's income increases, then potatoes are an example of _____.
• When the price of something increases, the quantity demanded _____.
• What is the term for exchanging one good or service for another?
• What do we call the cost of the next best alternative when making a choice?
• Within the market system, what determines prices?
• The demand for which of the following professions may outpace supply mainly due to low pay?
• Which of the following is NOT included in GDP?
• Which market structure typically provides the lowest prices for consumers?
• What happens to the quantity supplied when prices rise?
• What do we call the increase in satisfaction from consuming one more unit of a good?
• When calculating GDP, how is investment best defined?
• The additional satisfaction received from consuming an additional unit of a good is known as what?
• If a good has a very elastic demand, what does that imply?
• What effect does inflation have on a consumer's purchasing power?
• Firms in a monopoly are characterized by having what level of market power?
• Kaylee will save her allowance of $25 per month to purchase a $150 mp3 player in six months. What type of goal does this represent?
• Which statement describes the law of demand?
• If the United States and China decide to specialize and trade, which of the following must be true?
• A politician is worried about steel manufacturing in his district. What is the most likely result of proposing a price floor on steel?
• If the price of a popular good rises, what is the likely consumer reaction?
• A right, outward shift of a supply curve for avocados might be caused by _____.
• In which economic system does the government have a significant role in directing economic activity?
• What term describes the additional cost of producing one more unit of a good?
• Consider the term marginal utility. Which word is the best synonym for marginal?
• Which of the following would likely signal a surplus in a market?
• Which market structure is characterized by many firms competing with identical products?
• What does a trade-off involve in economics?
• What economic concept describes a market where prices adjust based on supply and demand?
• Who ultimately ends up paying tariffs?
• What does a production possibilities curve illustrate about resources?
• What is indicated by an economy experiencing economic growth in relation to the production possibilities curve?
• What is the primary focus of marginal analysis in decision-making?
• What does Point D typically indicate on a production possibilities curve?
• Supply-side and demand-side economic policies have the same goals. True or False?
• Which country is an example of a capitalist economy?
• The goods and services that a nation buys from other nations are called _____ .
• Contractionary fiscal policy is when the government _____ .
• Which of the following would lead to an outward shift of the production possibilities curve?
• Marginal analysis is applicable to which kinds of decisions?
• What element of a mixed economy allows for flexibility in the market?
• The hallmark of President Ronald Reagan's administration was supply-side economic policies. True or False?
• When would you consider an economy to be operating efficiently?
• In which of these systems is the government most likely to provide people with goods and services they could not otherwise afford?
• What type of competition is described by firms selling similar but not identical products?
• Which economic concept involves evaluating the costs and benefits of adding one more unit?
• What is one primary motivation for nations to engage in international trade?
• How is the summary provided in financial statements primarily useful?
• Perfect competition and monopoly are considered to be _____.
• How do employers typically assist employees with retirement savings?
• Which of the following is NOT counted as unemployment by the government?
• What does a high credit score imply about a person?
• Due to a disappointing economy, what happens to the market for gasoline?
• What is opportunity cost?
• What does your credit score reflect about you?
• Which of the following is true about funds in a Roth IRA?
• What typically occurs when a government sets a minimum wage above the market equilibrium?
• Who did John Maynard Keynes believe had the largest influence on spending in an economy?
• Equilibrium price and quantity is often referred to as what?
• If Ramen noodles are considered an inferior good, what happens when income decreases?
• How does a Roth IRA differ from a traditional IRA?
• True or False: Marginal analysis is not beneficial for store owners considering promotional sales.
• How do consumers typically react to tariffs on imported goods?
• If I am faster at producing goods than you, then I have _____ in the production of goods.
• What is the main goal of a protective tariff?
• Which characteristic best describes entrepreneurship in the economy?
• What is the formula used to calculate Gross Domestic Product (GDP)?
• In terms of opportunity cost, when is a country said to have a comparative advantage?
• Which of the following is NOT a typical problem caused by monopolies?
• How is the money in a traditional IRA taxed upon withdrawal?
• What would most likely result in a decrease in the equilibrium price of oranges?
• True or False: Due to the aging population in the United States, health care workers are in high demand.
• Which item is typically a function of a credit union?