12 grade Economics Unit 1-3 Test - Marist College

[Pages:4]Name ________________________________ 12th grade Economics

Period _________________________ Unit 1-3 Test

1. Making the most out of your resources is; a. Economic Equity b. Economic Efficiency c. Centrally Planned Economy d. Self Interest

2. Gross Domestic Product (GDP) is defined as; a. The total amount of goods and services produced in the world. b. The total amount of goods and services produced in an economy. c. The total value of all goods and services produced in the world. d. The total value of all goods and services produced in an economy.

3. What is a public good? a. Goods and services produced by the public funded by their own money. b. Goods and services produced by the government funded by taxes. c. Things Batman does. d. Environmental Activists

4. What is the motivating force in a free market? a. Self Interest b. Competition c. Public goods d. Socialism

5. In which form of economy does the government own the land labor and capital? a. Market Economy b. Socialism c. Centrally Planned Economy d. Marginal Economy

6. In which type of economy would this statement be the most likely

"Because his father was a carpenter Bill is expected to follow in his fathers footsteps."

a. Market Economy b. Centrally Planned Economy c. Traditional Economy d. Mixed Economy

7. What three economic questions does every society have to answer?

a. Where to find materials, how to fish, and how to print money.

b. What to produce, how to produce it, and who will consume the product.

c. Where to build, what to build, and how to get water to the build site.

d. When to produce, Why to produce it, and where to produce it.

8. When you choose to buy or not buy something you are;

a. Encouraging Innovation.

b. Creating an Externality.

c. Casting your Economic Vote.

d. Saving a lot of money on your car insurance.

9. When governments fund economic projects such as building a new highway they use money

from;

a. Corporations

b. Private sector

c. Public Sector

d. Economic Slush Funds

10. The producers struggle for consumer dollars is called

a. Manifest Destiny

b. Economic Struggle

c. Competition

d. Income Level

11. In the chart below What is the Opportunity Cost of working out at the gym for 2 hours;

A Working out at the gym for 1 hour Working out at the gym for 2 hours Working out at the gym for 3 hours

B Losing 1 pound

Losing 1.5 pounds

Losing 2 pounds

C Studying for 1 hour less

Studying for 2 hours less

Studying for 3 hours less

a. Losing 1.5 pounds b. Losing 2 pounds c. Studying for 1 hour less d. Studying for 2 hours less 12. What forces companies to tell you negative effects of medication? a. Public Goods b. Public Disclosure Laws c. Public Sector d. Public Enemy

13. If I decide to start an all night dance club near your house and the music keeps you up at night, what is that called? a. Societal Discretion b. Profit Motive c. Self Interest d. Externality

14. Enforcing Patents is one way that a government can a. Encourage Innovation b. Fund Research c. Answer the Economic Questions d. Create an Externality

15. If you have a limited quantity of resources to meet unlimited needs or desires, you have a; a. Scarcity b. Shortage c. Traditional Economy d. Capital

16. The Food and Drug Administration (FDA) is a government agency that regulates the safety of edibles and medicines. This is an example of; a. Public Disclosure b. Competition c. The Regulating Force of the Economy d. Economic Efficiency

17. The Poverty Threshold is; a. The income level above what is needed to fulfill your wants. b. The income level above what is needed to support your household. c. The income level below what is needed to fulfill your wants. d. The income level below what is needed to support your household.

18. True or False: A centrally planned economy has no control over economic decisions a. True. b. False, they have a little control over economic decisions. c. False, they have complete control over economic decisions. d. False, a centrally planned economy has no economic decisions to make.

19-30. Please label the chart below using the attached word bank.

A. Factor Market B. Product Market C. Households D. Government E. Firms F. Public Sector

Word Bank

G. Income H. Money I. Product J. Land, Labor, Capital K. Sales Tax L. Income Tax

Chart

19. ______ 20. ______ 21. ______ 22. ______ 23. ______ 24. ______

25. ______ 26. ______ 27. ______ 28. ______ 29. ______ 30. ______

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