Economics Quiz

The basic idea of choice presents which of the problems described below in economics?

• People get to decide what they want.

• Businesses can sell what they want.

• Decisions produce costs.

• Choice is a way of life.

What is required for an economy producing on the curve at Point B to produce more clothing?

• Get additional resources

• Acquire new technology

• Produce less food

• Hire more workers

Based on the information in the table, which economic condition is characteristic of all three nations?

• Low GDP per capita

• Low inflationary levels

• High levels of inflation

• High levels of unemployment

Japan has a 100% tariff on sports car imports from the United States. If a sports car costs $80,000.00 in the United States: How much would it cost in Japan?

• $80,000.00

• $120,000.00

• $160,000.00

The Federal Reserve System designed in the manner described above resulted in the creation of -

• reserve bank satellite locations

• a decentralized system of banks

• new methods for printing money

• one large depository for U.S. currency

Which of the following best completes the graphic above?

• Stock Exchange

• Federal Reserve System

• Treasury Department

• Washington, D.C.

Which of the following would most likely cause the shift shown in the graph above?

• A new, popular model of cell phone just came on the market.

• The cost of parts for cell phones has gone up.

• Cell phone salesmen are working overtime to sell their phones.

• The cell phone company made a large profit this year.

Scarcity is a basic economic problem because -

• resources are limited

• governments limit production

• opportunity costs limit demand

• people have trouble making choices

Which characteristic of the U.S. free enterprise system creates the incentive to

work, save, and invest?

• A. Social Security system

• B. Voluntary exchanges

• C. Private property ownership

• D. Consumer sovereignty

During an expansionary phase of the business cycle the government could

implement a contractionary fiscal policy in order to

• F. create jobs

• G. promote spending

• H. encourage investment

• J. address any inflation issues