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Economy-Resource
Taxes
People
Banks
Misc.
100
This is the type of economy in which economic decisions are based on customs and historical precedent
What is Traditional Economy?
100
These are taxes on imported goods.
What are tariffs?
100
Activities performed by people, firms, or government agencies to satisfy economic wants.
What are services?
100
This is a type of account that you deposit your money into the bank and when you need it, you write a check to take the money out of your account.
What is a checking account?
100
This is a medium of exchange used to buy and sell goods and services.
What is money?
200
This is the type of resource that deals with physical skills, intellectual skills, and creative skills.
What is Human Resources?
200
A tax paid by individuals and businesses to fund national defense, human services, and trade regulations.
What is Federal Income Tax?
200
Creative, innovative individuals who create or improve things people want.
What is an entrepreneur?
200
This is a method of saving money and at the same time, allowing that money to produce a percent of interest.
What is a savings account?
200
This is the amount people will pay when they buy a good or service.
What is price?
300
These are resources that are gifts of nature; such as water, forests, natural gas, oil, and climate
What are Natural Resources?
300
This is a tax in the form of a percent of the cost of a good or service.
What is sales tax?
300
People or firms that use resources to make goods and services.
What are producers?
300
This is an arrangement for deferred payment for goods and services.
What is credit?
300
This is the measure by which resources are used effectively.
What is productivity?
400
These are types of resources that are made and used by people to produce and distribute goods and services, tools, factories, land and NOT money.
What are Capital Resources?
400
This is a compulsory payment to governments by households and businesses.
What is tax?
400
People who use goods and services to satisfy their wants.
What are consumers?
400
This is a place where they facilitate the conduct of financial transactions such as: checking, savings, and loans.
What is a bank?
400
National Defense, System of Justice, Roads, Education
What are Government Expenditures?
500

7.    When Emily has an income of $1,000, she consumes 30 units of good A and 50 units of good B. After Emily's income increases to $1,500, she consumes 60 units of good A and 45 units of good B. Which of the following statements is correct?

a.    Both goods A and B are normal goods 

b.    Both goods A and B are inferior goods 

c.    Good A is a normal good, good B is an inferior good 

d.    Good A is an inferior good, good B is a normal good


Option C

500

If Coke and Pepsi are substitutes, which of the following will NOT cause an increase in the demand of Pepsi?

a. A health study comes out with a correlation between Coke consumption and shorter life expectancies.

b. Coke factories develop a new technology that allows them to more easily produce

Coke.

c. Public opinion of the taste of Pepsi with respect to Coke increases, leading to greater Pepsi consumption.

d. The price of one of the main ingredients in Coke’s secret recipe increases.

Option B

500

Which of the following could lead to an increase in the equilibrium price for a normal good?

I. An increase in the price of a substitute good

II. A government-imposed price ceiling

III. A decrease in consumer income

IV. An improvement in production technology

a. I

b. II, IV

c. III

d. I, III, IV

Option A

500

Economic growth can be represented by

a. an inward shift of the production possibilities curve.

b. an outward shift of the production possibilities curve.

c. a movement downward along the production possibilities curve.

d. a movement from a point on the curve to a point inside the curve.

Option B

500

Which of the following is NOT counted in nominal GDP?

a. Housing rent

b. Input goods sales

c. Used car rentals

d. Used car sales

Option D