MTLE Business: Microeconomics & Macroeconomics 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!

Page 1

Question 1 1. In a mixed market economy, who controls the factors of production?

Question 2 2. A natural disaster strikes country A, destroying bakeries across half of the country. How will this affect the supply of cakes?

Question 3 3. When a firm is determining whether or not to relocate a factory, which of the following is of the MOST use?

Question 4 4. Which is TRUE of points located outside of the production possibility curve?

Question 5 5. Why does the Federal Reserve require commercial banks to maintain reserves with them?

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Question 6 6. If Jim can make 40 chocolates in one hour and Kate can make 20 chocolates in that same hour, who has the absolute advantage?

Question 7 7. Which of the following allows us to cope with scarcity of resources?

Question 8 8. When a point is on the production possibilities curve and there are no other points specifically on the curve, how can we interpret this point?

Question 9 9. Which one is not an example of the actions taken by the government where economic policy is concerned?

Question 10 10. How is an individual demand curve created?

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Question 11 11. All of the following are true about the demand curve in microeconomics, except what?

Question 12 12. A Mixed Market Economy is also called what?

Question 13 13. On a normal demand curve, if we know an individual will demand five units of a good when the good is priced at $5, what statement is MOST LIKELY true if the price of the good changes to $4?

Question 14 14. When a market price is set below the market equilibrium price, a _____ exists, which will _____.

Question 15 15. Which of the following is NOT a subject in the study in macroeconomics?

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Question 16 16. Which of the following gives an example of utility changing depending on the circumstances?

Question 17 17. Which of the following is FALSE regarding the Federal Reserve?

Question 18 18. In a planned economy, who controls the factors of production?

Question 19 19. The task of keeping the general price level from increasing or decreasing, is the definition of what?

Question 20 20. What does the production possibilities model show?

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Question 21 21. Many countries fall under what economic system?

Question 22 22. Assume that land can be used either for producing corn or producing beef. The opportunity cost of converting an acre from producing corn to raising cattle for beef is equal to which of the following?

Question 23 23. _____ refers to a specific quantity offered for sale at a specific price.

Question 24 24. What does the law of demand state?

Question 25 25. Economy A has a comparative advantage over Economy B. What is the reason for this?

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Question 26 26. The term for being able to make the greatest amount of a good in a given time is:

Question 27 27. The Federal Reserve achieves its monetary goals by doing which of the following?

Question 28 28. What are some of the objectives of the Fed?

Question 29 29. A movement along the supply curve is caused by:

Question 30 30. _____ refers to the various quantities offered for sale at various prices.

MTLE Business: Microeconomics & Macroeconomics 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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