Odesseyware Economics Tests

Country A prohibits trade with Country B due to political reasons. This is an example of _____. Country C restricts the number of televisions Country D may export to Country C each year. This is an example of _____.

an embargo, a quota

Two new companies start to produce HDTVs. This results in _____ in the _____ HDTVs.

an increase, supply of

A government imposes _____ to increase competition in the marketplace.

anti trust laws

Amanda invested her money with a company called Exceptional Investments. She earned a lot of money from her investments. This will most likely encourage Amanda to----- Exceptional Investments.

invest more moeny with

At the equilibrium price, resources are _____ and consumers have _____ goods and services.

not wasted, enough

_____ is a market structure that has few sellers who can influence the price. Products can be identical or differentiated, such as in the steel or car markets.

oligopoly

Cars made in a Japanese-owned factory located in North Carolina are counted in _____.

only the gross domestic product

________ serves as an incentive for entrepreneurs.

proft

A monopolist's goal is to maximize _____.

profts

The U.S. government pays for _____ such as roads and mail delivery.

public goods and services

A government imposes _____ to make companies take responsibility for negative externalities. These are rules that govern the way others behave.

regulations

What do opponents of minimum wage believe are the results of minimum wage?

results in job shortages causes unemployment raises prices of goods

Which of the following describe a public good?

roads, education, police forced provided by the government in market economoies can proved benefits to many people at the same time

The _____ for an accountant is between $40,000 and $50,000.

salary range

In a market with price controls, there can be _____ or _____ of goods and services.

shortages, surpluses

If the government wants to help the economy to grow, it can increase --- , but this can also increase the budget debt.

spending

Select the items that describe economic growth.

businesses make more products consumers spend more money producers earn more revenue it is part of the economic cycle

A general rise in the prices of goods and services, such as food and clothes, is called _____.

inflation

To reduce inflation, the Federal Reserve _____ the money supply. This action also causes the economy to shrink.

decreases

Real Gross Domestic Product (GDP) is _____ adjusted for price changes.

nominal GDP

_____ are rules that prevent the creation and behavior of monopolies.

Antitrust laws

Select the items that describe incentives.

Can be rewards or penalties influence future actions encourage people to act can be monetary or non monetary

A machine that is used to sew shirts is called a _____ .

Capital good

Because they can't have everything they want, people make _____ .

Choices

The amount of one currency that can be traded for a unit of another currency is called the _____.

exchange rate

To allocate means to _____ .

Distrubute

_____ is the most common way to measure the standard of living in different countries.

GDP per capita

Lisa bought a new pair of shoes for $50. Choose the statement that best describes this situation.

Lisa demanded the new pair of shoes

In the United States, people are chosen for various government positions based on receiving most of the votes. This distribution system is called _____ .

Majority rule

When making a decision that will leave you better off, you try to _____ .

Maxamize satisfaction

Japan sells cars to the United States. Japan considers the cars as Japanese _____.

exports

Lucy was trying to decide between three food choices: pizza, a salad, or a hamburger. She chose the salad. In this case, the salad represents her _____ .

Preference

People who make goods and services are called _____ .

Producers

Going to a concert, getting a haircut, and going to the doctor are examples of _____ .

Services

When banks make loans, the money supply .

increases

Paul had three ways to use his allowance money: spend, save, or donate. He decided to donate his money to charity. Any value given up by not choosing to spend or save the money is the _____ .

Trade off

With _____, resources are wasted because they are not used efficiently.

a monopoly

When the economy is growing, total output is _____ and total income is _____.

increasing, increasing

Select the three economic questions that each economy has to answer.

Who will consume the goods and services? How will the goods and services be produced? What goods and services will be produced?

Given the same choices, people make different decisions. This is because people have _____ .

individual preferences

Exchanging desserts between you and your friend is an example of _____.

bartering

Select all the items involved in marginal analysis.

calculating the marginal cost of a choice figuring out the marginal benefit of an alternative

Jared quit his job at the bank and no longer has a job. He _____ collect unemployment insurance.

cannot

Select the factors that improve human capital.

choosing a career training education

Money earned as a percentage of sales revenue (such as the revenue earned from selling houses or cars) is called _____.

commission

A monetary system where the value of monetary units is set by the specified quantity of an item is ______.

commodity money

The _____ is a measurement that describes price changes in commonly used goods and services, such as food and housing.

consumer price index

Sue buys a new computer, which counts as _____ in the Gross Domestic Product. Later, she buys a new home, which counts as _____ in the Gross Domestic Product.

consumption, investment

Each decision has something that you give up, called the _____ .

cost

You can afford to buy the latest HDTV, which means that it _____ as demand for you.

counts

Items that save you money by allowing you to pay a relatively low price for a good or service include _____ .

coupons and comparative shopping

Your mom tells you to charge a price of 25 cents for each bracelet. Since the marginal cost of making a bracelet is also 25 cents, this price will _____.

cover your costs

Maria lost her job because the economy is shrinking. This is an example of _____.

cyclical unemployment

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will _____.

decrease

Suppose cell phone producers are charging $150 for the latest cell phone. But the equilibrium price for the cell phone is $100. In a market without price controls, market pressures will move the price _____ the demand curve until it reaches the _____ price.

down, equilibrium

Suppose you run a T-shirt business and charge $10 per shirt. It costs you $2 to make a T-shirt. At your price, you will _____.

earn a profit

You decide to charge $10 for a bracelet that costs 25 cents to make. At this price, you would _____.

earn a profit

Your car still has a marginal cost of $20,000. But, the market price has now increased to $25,000. Your incentive to supply cars is to _____.

earn a profit

Entrepreneurs and other sellers --- when consumers buy products at prices high enough to cover their production costs.

earn profits

Money makes trading ---by replacing bartering with transactions that involve paper money, coins, or checks.

easier

Supporters of rent control state that rent control makes it _____ for people to afford housing.

easier

Economic growth, peaks, economic downturns, and troughs are part of the _____.

economic cycle

A person, such as the owner of a pharmacy, who organizes other productive resources to make goods and services is called a(n) _____.

entrepreneur

In a market without price controls, supply will eventually _____ demand. Then consumers will buy all the products that producers supply.

equal

The next day, you charge $3.50 for each bracelet. You have a supply of 30 bracelets, and exactly 30 customers demand them. At the end of the day, there is no excess demand or excess supply. So, $3.50 must be the _____.

equilibrium price

Suppose you are a jeans producer who charges a price of $10 for a pair of jeans. But the equilibrium price is $15. At your price, you will have an _____ jeans.

excess demand for

Suppose a company that produces cleaning supplies also pollutes the air. This pollution is a(n) _____ of the production process.

externality

A fallacious argument is one that is based on _____.

false logic

You are in line at the movies waiting to buy a ticket. Allocating the tickets this way is an example of _____ .

first come first serve

_____ is when the government uses government spending and taxes to affect economic performance.

fiscal policy

A building is an example of a _____ because it is a cost that does not change as output changes.

fixed cost

Nonrenewable resources include _____ .

fossil fuels and minerals

Fiscal policy, or changes in tax levels and spending, is carried out by the .

governments

At the lowest price for a TV, the number people demanding the good is _____ the number who demand the good at the highest price.

greater than

Not-for-profit organizations are established mainly for religious, civic, educational, or--- purposes.

health

An incentive to accept a new job is _____.

high wages

Consumers, producers, workers, savers, investors, and citizens respond to incentives in order to allocate their scarce resources and receive the _____ .

highest possible benefits

Select the items that describe perfect competition.

identical products open entry and exit price taker

The U.S. is known for its strong consumer spending but also a trade deficit. This means that the country _____.

imports more than it exports

Liability rules, property rights, contract enforcement, and standards for weights and measures affect the--- for people to produce and exchange goods and services.

incentives

The ability for anyone in a society to own private property _____.

incentivizes people to conserve resources encourages entreprenuership

Over the summer, 100 new families moved into town. This will _____ the demand for goods and services, at each price level.

increase

Based on what you've learned in this unit, why would someone use a check instead of cash?

it provides a written record of the transaction

At the lowest price for a TV, producers will supply the _____ televisions.

least

The cost of electronic parts increased. Now, producers of electronic products will supply _____ products.

less

Adina deposits $1,000 in the bank. The bank can then use her savings to make _____ to/for _____.

loans, investors

You produce elastic bracelets that cost 25 cents to make. Your friend tells you to charge a price of 10 cents for each bracelet. At this price, you will _____.

lose money

Supporters of minimum wage state that it provides more money to people with _____.

low paying jobs

Select all the items that describe the benefits that consumers may receive from more sellers in the bracelet market.

lower price for bracelets better quality bracelets improved customer service

Unfortunately, no one buys your bracelets at a price of $10. This is a signal for you to _____.

lower your price

_____ studies the whole economy, such as investments made by all consumers and businesses.

macroeconomics

You decide to eat one more chip. The change in the total amount gained that comes from this action is the _____ .

marginal benefit

To figure out price and quantity in a monopoly, a business finds the point at which marginal cost equals _____.

marginal revenue

Trading stocks, buying and selling currency, and purchasing a new computer from the store are all examples of _____.

markets

HDTVs go on sale, which reduces the price. This means that _____ people will demand the product.

more

Other students in school learn that you are making money by selling bracelets. They decide to open their own bracelet businesses. This means that there is _____ competition in the bracelet market.

more

When consumers buy _____ products, then producers make _____ goods and services. This can lead to economic growth.

more, more

In perfect competition, sellers have _____ control over price.

no

Select the items that describe the ways that the U.S. government protects intellectual property rights.

patents copyrights trademarks protection of trade secrets

Select the items that can influence your decision process for buying a cell phone.

peer pressure price of the phone advertising

Another way to achieve the same goals as minimum wage and rent control (without keeping markets from reaching equilibrium levels) is to increase _____ directly.

personal income

_____ are sources of revenue for both federal and state governments. Individuals pay this tax from the money they earn.

personal income taxes

You chose to buy a red pair of shoes, rather than a black pair. Your demand was based on _____.

preference

Cell phone producers charge a _____, which consumers pay to buy the phones.

price

Free-market economies use --- to distribute goods, services, and resources.

price

Joe's Computers is a single seller that produces a new product with no close substitutes. This business is a _____.

price setter

The percentage of the labor force that is willing and able to work, does not currently have a job, and is actively looking for work is called _____.

unemployment rate

GDP per capita does NOT include _____, which is a problem with using it to measure quality of life.

unpaid work

Brianna and Jack work in the same position for the same company. They also have similar training and work experience. Yet Brianna earns more money. This is called _____.

wage discrimination

Scarcity is the condition of not having enough goods and services to satisfy everyone's _____ .

wants

It's holiday time, and Jason went into the wrapping business. It's been a busy day, and he wants to go home. He figured out that the cost of wrapping an additional present is $0.50. He also charges $1.00 to wrap a gift. Which decision would make him better off?

wrapping an extra gift

You produce a car that costs $20,000 to make. The market price for the car is $15,000. At this price, you would supply _____ cars.

zero