Economics Practice for FinalA+B+C

Your high school is selling homecoming tickets to students. There is a limited supply and the principal decides the tickets will be sold to those who get there first. Which allocation strategy is being used?

• Majority Rule

• First Come, First Served

• Lottery

• Everyone Shares

2) If a school buys new Macbooks for all teachers, which factor of production is the school investing in?

• Land

• Labor

• Capital

• Entrepreneurship

What is the fundamental problem all societies must face?

• Scarcity

• Not being allowed to use phones during class, RIGHT!

• Allocation

• Inflation

You decide to open your own bakery. You get a loan, rent a building, hire 5 employees, and order all the necessary ingredients to start baking. Which factor of production do you represent?

• Land

• Labor

• Capital

• Entrepreneurship

5) The economic theory of scarcity states that because resources are limited, people have to do which of the following?

• Make choices

• Suffer

• Make more resources

• Borrow money

6) In the circular flow diagram, in which of the markets are human resources exchanged for wages, salary, or income?

• Product market

• Resource market

• Household

• Business

An ice storm damages most of the peach crops in the southern United States. What will most likely happen to peach prices?

• Prices will vary

• Prices will decrease

• Prices will increase

• Prices will stay the same

8) What is the equilibrium price for this product according to the graph?

• $8

• $6

• $4

• $2

According to the graph, what is the equilibrium quantity for this product?

• 100

• 200

• 300

• 6

Sarah decided to start the Excellent Adventure Travel Agency, specializing in exotic trips. She does not have to share decision-making, costs, liability, or profit. What kind of business organization is this?

• Corporation

• Partnership

• Sole proprietorship