Economic Basics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Scarcity means:

Question 2 2. How do economic drivers relate in the supply of a good or service?

Question 3 3. The perpetual problem in economics is:

Question 4 4. Which of the following factors of production is most relevant to entrepreneurship?

Question 5 5. What is a market demand schedule?

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Question 6 6. What is a market supply schedule?

Question 7 7. Economics looks at

Question 8 8. The market for coffee is currently in equilibrium. If the demand for coffee decreases, which of the following would LEAST likely happen?

Question 9 9. What type of entrepreneur is required to invest all profits back into the enterprise?

Question 10 10. Which term describes the way a society organizes the production, distribution, and consumption of goods and services to meet people's needs and wants?

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Question 11 11. When a market price is set below the market equilibrium price, a _____ exists, which will _____.

Question 12 12. What does a shift of the demand curve to the right indicate?

Question 13 13. Economics is best described as the study of:

Question 14 14. What is quantity supplied?

Question 15 15. What is quantity demanded?

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Question 16 16. Why does a monopoly-based system result in a negative business environment?

Question 17 17. Because resources are scarce, but wants are not:

Question 18 18. This image shows the market demand schedule for bananas. If the price goes from 60 cents to 40 cents, how many more bananas will be purchased per week?

Question 19 19. Which of the following statements is TRUE?

Question 20 20. Which of the following best describes a free market?

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Question 21 21. When a market price is set above the market equilibrium price, a _____ exists, which will _____.

Question 22 22. Which of the following economic systems is characterized by state ownership of all factors of production?

Question 23 23. Why does the market structure of the United States MOST resemble monopolistic competition?

Question 24 24. A shift of the supply curve to the right indicates which of the following?

Question 25 25. Which type of entrepreneur is focused on getting a new business off the ground and then moving on to start a new one?

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Question 26 26. The image shows the supply schedule for Bob's Low-Rider Lawn Mowing services. Which of the following statements is true regarding the supply of lawn cuts at a price of $25?

Question 27 27. Which of the following best describes opportunity cost?

Question 28 28. Assume that you have two hours to spend at the mall. You can either visit the bookstore or enjoy a movie at the theater. The opportunity cost of watching a movie is equivalent to which of the following?

Question 29 29. During the time Mary spent studying macroeconomics, she could have instead either made brownies or played the piano. She thinks to herself that if she wasn't studying, then she would have made brownies. In this case, her opportunity cost of studying is equal to which of the following?

Question 30 30. What type of entrepreneur may be involved with skunk works?

Economic Basics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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