7th Grade Civics Final Exam Study Guide

What do Services include?

• Services include work that is done for us.

• Services include only physical goods.

• Services include only things we can touch.

• Services include only products we can buy.

There are three types of Resources: Natural, Labor, and _____. Fill in the blank.

• Capitol

• Energy

• Technology

• Water

Economics is the study of how people choose to use their limited resources to satisfy their ____ wants. Fill in the blank.

• unlimited

• limited

• basic

• temporary

The USA is based on a market economy where businesses are free to compete for profit with little interference from the _____.

• government

• media

• consumers

• banks

Which of the following is an example of a fixed cost? Choose the correct option.

• Rent

• Payroll for extra hours

• Raw materials

• Advertising

Labor is an example of which type of cost? Choose the correct option.

• Fixed cost

• Variable cost

• Sunk cost

• Opportunity cost

Marginal analysis does comparisons if additional benefit is greater than the additional _____.

• cost

• revenue

• output

• time

What is the rule of Marginal Analysis?

• To continue doing something until the marginal cost equals the marginal revenue.

• To stop production when total cost is minimized.

• To maximize output regardless of cost.

• To ignore marginal benefits and focus on total revenue.

In a market economy, prices are set by the interaction of which two forces?

• Demand and supply

• Production and consumption

• Imports and exports

• Government and consumers

Markets are efficient when they operate freely. What do they set when they operate freely?

• Their own prices

• Government regulations

• Fixed wages

• Import quotas