ECONOMICS CLASS / PERIOD 4
 
 
 

Any questions?  Email jmuller@bacschool.org

MIDTERM REVIEW

1.        The prosperity and efficiency of the free market economy is owed to its foundation of limited government, freedom of enterprise and competition, and ____

a.  abundance of resources         b. property rights
c. imperialism                            d. circular flow models

 

2.       The quantity of a good that producers will make available at different prices is the _____

a.  stock                b. supply              c. demand           d. equilibrium

 

3.       A nation whose resources are produced the same way they were 200 years ago has a ______________ economy.

a.  traditional     b. command       c. free market   d. subsistence

 

4.       A truck used by a florist to deliver flowers is an example of a __________ good.

a.  consumer      b. capital             c. productive      d. supplier

 

5.       ____ is the amount of satisfaction that results from a one-unit increase of a good.

a.  Utility              b. Total utility     c. Marginal utility            d. Diminishing marginal utility

 

6.       Entry into a(n) ____ market is completely blocked.

a.  perfectly competitive                               b. monopolistic
c. monopolistically competitive                  d. oligopolistic

 

7.       The Wealth of Nations was written by _____

a.  John Adams                  b. E.I. Du Pont                   c. Karl Marx                        d. Adam Smith

 

8.       When economists use the term ____, they are referring to material items or services that are valuable to people.

a.  markets          b. goods               c. supplies           d. economies

 

9.       An economic ____ seeks to show the relationships among the various components of an economy.

a.  market            b. model              c. forecast           d. module

 

10.   A forklift used to transport imported goods within a warehouse would be a(n) ____ good.

a. capital              b. imported        c. consumer       d. invested

 

11.   Laissez Faire, a French phrase often used in connection with economics, means _____.

a.  “less is more”               b. “free market”               c. “let things alone”       d. land equals wealth”

 

12.   The nations of Europe followed the economic policies of mercantilism during the ___ century.

a. 12th                    b. 15th                    c. 17th                    d. 19th

 

13.   The ____ of a good refers to the quantity of a good for sale at a certain price under certain conditions

a.  supply             b. need                                c. demand           d. market

 

14.   The capitalism of the former Soviet Union was ____ capitalism because the government controlled most of the capital.

a. imperfect       b. private             c. perfect             d. state

 

15.   If a grocery owner were to talk about the amount of bananas consumers were buying, he would be referring to that fruit’s _____

a.  popularity      b. supply              c. demand           d. shelf life

 

16.   A Communist-controlled country would most likely have a ____ economy.

a.  traditional      b. command      c. free enterprise             d. mixed

 

17.   This gentleman used his resources wisely to make gunpowder for President Jefferson

a.  E.I. cu Pont    b.  Alexander Hamilton  c.  Pierre Samuel du Pont             d. Eletherian Mills

 

18.   In a free market, who ultimately determines what goods are produced and in what quantity?

a.  the market researcher             b. the government
c. the product designer                 d. the consumer

 

19.   A non-durable good has a life expectancy of less than _____

a.  3 months       b. 6 months        c. 1 year               d. 3 years

 

20.   ___ is the amount of satisfaction that results from a one-unit increase of a good.

a. Utility               b. Total utility                     c. Marginal utility            d. Diminishing marginal utility

 

21.   If Miss Johnson quit a job where she annually made $40,000 to start a business whose expense was $20,000 and total revenue was $15,000 during the first year, her opportunity cost for the year equaled ______

a. $5,000              b. $25,000            c. $45,000            d. $60,000

 

22.   The _____ effect says that when the price of a certain good rises, people tend to find alternatives that are less expensive.

a. substitution                   b. complement                 c. income             d. elasticity

 

23.   The excess of total revenue over total expense is a producer’s ________

a.  assets              b. liabilities          c. profit                                d. loss

 

24.   The _____ effect says that when the price of a certain good rises, people tend to find alternatives that are less expensive.

a.  substitution                 b. complement                 c. income             d. elasticity

 

25.   Which group was the first to try to create a science out of economics?

a.  imperialists   b. protectionists               c. physiocrats    d. mercantilists

 

26.   The proficiency of the market economy is owed to its freedom of enterprise and competition, limited government and _________

a.  division of labor          b. productivity                   c. natural resources        d. property rights

 

27.   A(n) ______ is a tax that a government places on imported goods.

a. toll                     b. assessment                   c.  manifest         d.  tariff

 

28.   _____ is the main reason why countries with market economies are generally prosperous.

a.  Ambition        b. Competition                 c. Energy              d. Contention

 

 

Match the term with the correct definition or description. 

 

29.   Macroeconomics - j

30.   Microeconomics - a

31.   Equity – b

32.   black markets - d

33.   subsidies - h

34.   Command economy - e

35.   Free market economy - k

a.       a.  The study of specific components within a major economy

b.    b.  the value of something minus liablities

c.    c.  directed by customs and habits

d.    d.  developed to avoid governmental regulation

e.    e.  directed by government

f.     f.   mechanism through which people exchange goods

g.    g.  an intangible good for which people expect to pay

h.    h.  granted by government for the assistance of industries

i.     i.  a tangible good for which people expect to pay

j.     j.  the study of national economies

k.     k.  governed by an “invisible hand”