Statistics for Test of Economic Knowledge

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General Stats

  • This quiz has been taken 21 times
  • The average score is 31 of 40

Answer Stats

QuestionAnswer% Correct
Why are diamonds more expensive than water even though water is necessary for life and diamonds are not?Diamonds are more scarce than water.
95%
Which of the following is typically true?People’s choices have consequences for the future.
95%
What is the most likely reason why a business would cut the price of a product it sells?To encourage more people to purchase the product.
95%
If a high tariff was placed on steel shipped into the U.S.,U.S. consumers would pay more for steel.
95%
The economic problem of scarcity means that for individuals, governments, and societies thewants for goods and services are greater than the available resources to meet them.
95%
It will cost Amanda an extra $30 to purchase a warranty for a $400 new camera that she is buying. If Amanda decides to buy the warranty she has concluded that thebenefit of the warranty is greater than its cost.
90%
Chicken and fish are substitutes for each other. If the cost of raising chickens increases, then the price of chicken willincrease and people will buy more fish.
90%
Expansion of international trade usuallyincreases worldwide production.
90%
Which is true about who gets the goods and services that are produced?No method of distributing goods and services will satisfy everyone.
90%
There is little government ownership of farms and businesses in the country of Mala. People may change jobs and start new businesses. The government does not control prices and wages. What type of economy is Mala?Market economy.
85%
A market-clearing price occurs whenquantity demanded equals quantity supplied.
85%
The price of DVDs will decrease if thesupply of DVDs increases.
85%
At the end of winter, retail clothing stores still have many winter coats for sale. The retail store owner can eliminate thesurplus by lowering the price.
85%
Which of the following people would the U.S. government count as unemployed?A high school graduate who has not yet found a job but continues looking.
80%
Workers’ wages usually increase whendemand for the products they produce increases.
80%
Most entrepreneurs start a new business because they expect toearn a profit.
80%
There used to be one producer of a good in a market and now there are many competing producers. What is most likely to be the result?Lower product price.
80%
Government spending less than taxes collected during a year is calleda budget surplus.
75%
Inflation is the term used to describea general increase in prices.
75%
Advances in technology result inan increase in productivity.
75%
In the United States, prices for most goods and services are determined by the actions ofbusinesses and consumers.
75%
A sales tax is a tax onconsumption.
75%
Banks make most of their profits by charginghigher rates of interest to borrowers than they pay depositors.
75%
In what way is a fireworks display a public good?It can be seen by those who do not pay for it.
75%
Specialization and trade lead tolower costs of goods and services.
75%
A major economic role that government is supposed to perform in a market economy is tomaintain competition.
75%
When comparing the standard of living in one nation’s economy to another nation’s economy, GDP is typically adjusted in each nation by dividing GDP by a nation’spopulation.
75%
Amy is saving ten percent of her income a month. The money she saved is primarily functioning as astore of value.
75%
Most wages and salaries in the United States are determined bysupply and demand.
75%
Which is most likely to influence the level of competition in markets?The number of buyers and sellers.
75%
Which will result from an increase in the demand for construction workers?An increase in the wage of construction workers.
70%
Jody bought shares of stock in a company. She and the other stockholders voted to elect its board of directors. The company is acorporation.
70%
The control of the money supply is the main responsibility of theFederal Reserve System.
70%
What usually causes the standard of living in a country to increase over time?Increased output per worker.
70%
Which one of the following is correct?Most nations create their own currency for use as money.
70%
One consequence of scarcity is thatpeople have to make choices among alternatives.
70%
To know if an increase in wages over a period of time has led to an increase in the standard of living, we must also look at changes inprices of goods and services.
70%
If there is a large decrease in demand for corn and no change in supply,consumers will pay a lower price for corn.
65%
What does the gross domestic product (GDP) measure?The market value of final goods and services produced in a year.
60%
The opportunity cost of a decision is thevalue of the next best alternative not chosen.
60%

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