GACE Economics Test I (038): Practice & Study Guide Final Exam

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Question 1 1. Which of the following is an example of market failure?

Question 2 2. Which of the following is an example of a price floor?

Question 3 3. Which of the following illustrates the government controlling supply?

Question 4 4. Which of the following applies to short-run production?

Question 5 5. Sam owns his bakery under a sole proprietorship. The bakery has fallen on hard times lately and the bakery's debts are becoming unmanageable. Who is responsible for paying the bakery's debts?

Question 6 6. The American Nail Clippers Company produces nail clippers. The company does not pay federal income tax. Its shareholders get taxed on their income from the company's dividends. What type of business is the American Nail Clippers Company?

Question 7 7. The theory of comparative advantage is which of the following?

Question 8 8. The production possibilities curve illustrates which of the following?

Question 9 9. Jake has been waiting for a long time for the second installment of his favorite movie to come out. When it does, he finds out that he will have to wait in line for an hour to get tickets. He decides to go to another movie and wait until another day to see the anticipated sequel. What is his opportunity cost?

Question 10 10. What does ceteris paribus mean when speaking of economics?

Question 11 11. When the price of a good increases, the willingness and ability of consumers to pay for the good will decrease. If the price goes down, the willingness and ability of consumers to pay for it will go up. This is known as which of the following?

Question 12 12. Which of the following would cause an outward shift in the demand curve?

Question 13 13. A country where the government makes decisions regarding what is produced and how much of it is which type of economy?

Question 14 14. Lilly just got a new job working at a home improvement store. They assigned her to work in the outside garden department and told her she needs to wear t-shirts and shorts. Lilly needs to go shopping for these items. While shopping, she comes across some dresses that she really wants to buy. However, since she is on a budget and she can't wear the dresses to work, she decides against the dresses and buys the t-shirts and shorts because these will be more useful than the dresses. Satisfied with her purchase, she goes home. What is the term that could be used to describe Lilly's actions?

Question 15 15. Thinking about resources, which of the following best describes microeconomics?

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GACE Economics Test I (038): Practice & Study Guide Final Free Practice Test Instructions

Choose your answer to the question and click 'Continue' to see how you did. Then click 'Next Question' to answer the next question. When you have completed the free practice test, click 'View Results' to see your results. Good luck!

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