Economics Test Out Practice Test

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• Which branch uses objective analysis to describe how things are in the world?
• What concept describes the characteristic of a society where people rely on others for most of the goods and services they want due to specialization and trade?
• Which term describes an organization that functions much like a business but does not seek to make a profit?
• A simple model of an economy that shows all the possible combinations of two goods that can be produced with current resources and technology is called what?
• An arrangement in which a parent company, or franchiser, distributes its products or services through independently owned outlets; the outlet owners, or franchisees, pay for the exclusive right to use the parent company's trade name and sell its products or provide its services.
• What term describes government rules aimed at influencing the behavior of firms and individuals, including setting prices and workplace standards?
• To determine whether an action should be undertaken by comparing its total expected benefits to its total expected costs, one would perform a
• The government power to take private property for public use with compensation.
• A difference in the wages earned by various groups in society is known as what?
• The market value of all final goods and services produced within a country during a given period is known as what?
• Which term describes an organization that operates like a business but is not aimed at earning profits?
• Which indicator represents the percentage of the labor force that is not employed but actively seeking work?
• What term describes the act of willingly trading one item or service for another, with both parties expecting to gain?
• The legal responsibility to repay debts and to pay for damages resulting from a lawsuit.
• A rise in the overall price level of goods and services is called what?
• Which card allows the user to access funds on deposit in a bank account and can be used to buy goods or withdraw money directly from an account?
• Which term describes the system used to manage limited resources for the production, distribution, and consumption of goods and services?
• Market structure featuring a single seller with a unique product and no close substitutes?
• What is the term for the wage rate that results in neither a surplus nor a shortage of labor in the market?
• Which term describes a franchise arrangement where independent owners operate outlets under the parent company's trade name?
• Which branch applies value judgments to data to advise how things ought to be done?
• Which term describes the removal of government restrictions to promote competition?
• The economic law stating that as price increases, the quantity demanded decreases and vice versa is known as which?
• Policies designed to promote the hiring of individuals from groups that have historically faced job discrimination are called what?
• Which concept represents the value of the next best alternative foregone when a choice is made?
• Illegal market where goods are traded at prices or quantities above legal limits?
• A policymaker arguing that a policy should be adopted because it improves society overall is illustrating which type of economics?
• What is the term for the percentage change in the general price level from one year to the next?
• What describes the regular pattern of expanding and contracting economic activity over time?
• What term refers to statistics that help economists judge the health of an economy?
• A product that is used or consumed jointly with another product and is more valuable when paired with its complement is called a
• Process of removing government restrictions on firms in order to promote competition or encourage economic activity.
• Single producer with a unique product and no close substitutes; price setter?
• A market structure in which many producers supply similar but varied products, and is the closest to perfect competition.
• Which market structure is characterized by many producers offering similar but differentiated products, making it the closest to perfect competition?
• Which term refers to the general price level changes for consumer goods and services over time?
• Which model shows the maximum possible combinations of two goods that an economy can produce given its resources and technology?
• What is the term for the term that exists when someone can produce a good or service using fewer resources than someone else?
• The crowding-out effect arises from government demand for funds that raises which price?
• An agency responsible for setting and enforcing standards for a specific industry is called?
• Which condition is characterized by slow or zero economic growth combined with high inflation and unemployment?
• A measure of the degree to which the quantity demanded or supplied of a good or service changes in response to a change in price
• Describe a perfectly competitive market?
• A situation in which the market fails to allocate resources efficiently.
• Which monetary policy aims to accelerate the growth of the money supply to stimulate the economy?
• A society's way of coordinating the production and consumption of goods and services is called what?
• Market structure with many firms but product differentiation, giving some price control?
• A period of declining national economic activity, typically with GDP falling for two consecutive quarters, is called?
• What term describes the direct exchange of goods or services without the use of money?
• Which factor would increase the likelihood of crowding-out?
• Anything owned to which a market value can be assigned
• What term describes the point at which quantity demanded equals quantity supplied in a market?
• Which market structure is characterized by a few firms dominating the market and producing similar or identical goods, and is more competitive than a monopoly?
• A product that satisfies the same basic want as another product and can be used in place of it is called a
• Which term describes choosing one option over another because it yields a better outcome?
• What term refers to the development of skills or knowledge in one aspect of a job or field of interest, leading people to specialize?
• What concept describes the allocation of separate tasks to different people, with the production of a good or service based on specialization?
• What is the term for work done by someone else for which a consumer, business, or government is willing to pay, such as teaching or childcare?
• What term describes income earned when an individual sells or rents a factor of production that they own?
• The amount of money a firm receives in the course of doing business; revenue is calculated by multiplying the quantity sold by the price
• Which term describes the measure of responsiveness of quantity demanded or supplied to price changes?
• How can crowding-out affect long-run potential GDP growth?
• Which term describes an economy in which the means of production are privately owned and operated for profit?
• What effect does crowding-out have on private investment?
• Which term describes a company that does business in more than one country?
• A cost or benefit that arises from production or consumption of a good or service that falls on someone other than the producer or consumer.
• Which metric is commonly reported as the percentage increase in the average price level from month to month or year to year?
• An economic system in which decisions about production and consumption are made by a powerful ruler or government.
• Which concept is the value of the next best alternative that is given up when making a choice?
• What is the condition that results because people have limited resources but unlimited wants?
• Which term denotes relocating work and jobs to another country?
• The quantity of a good or service that producers are willing and able to offer for sale at various prices is called what?
• Which type of economic system relies on central planning by the government to decide what to produce?
• Inefficient allocation of resources caused by government intervention in the economy.
• What is the term for the exchange of one benefit or advantage for another that is thought to be better?
• Which term describes the relocation of production or services to a foreign country to reduce costs?
• If crowding-out occurs, what is the typical direction of private investment?
• Which term describes how the tax burden is distributed between consumers and producers?
• What could central bank do to counteract crowding-out effects?
• Market structure describes broad arrangement of a market with respect to competition?
• The combining of two or more separately owned firms into a single firm.
• Which term describes a card that authorizes the user to borrow funds to purchase goods or services and is issued by banks or retailers?
• Which term describes a good that can replace another good in consumption, satisfying the same basic want?
• Which term refers to the study of how people allocate limited resources to satisfy unlimited wants?
• Which economic law states that as the price of a good or service increases, the quantity supplied increases, and vice versa?
• Which tax takes the same share of income at all income levels?
• Government-imposed limits on prices producers may charge?
• Which condition describes high inflation with stagnant growth and high unemployment?
• What is the term for the phenomenon where increased government borrowing leads to higher interest rates and reduces private borrowing?
• If an economist states the unemployment rate is 5% without judging whether that rate is good or bad, which approach is this?
• Which term best describes the institution that accepts deposits and makes loans?
• Which term is commonly considered the opposite of crowding-out?
• In which situation is crowding-out more likely to occur?
• The quantity of a good or service that consumers are both willing and able to buy at various prices is called what?
• A corporation that does business in more than one country.
• Setting aside a portion of income for use in the future.
• Which term describes an agreement between workers and management to determine wages, hours, and other conditions?
• A business whose main purpose is to receive deposits and make loans.
• Which economic system describes an economy where the government and individuals both play important roles in production and consumption?
• Which economic system is a mixed economy, combining government and private sector involvement?
• Which monetary policy is designed to increase the money supply to stimulate growth?
• Organization of a market based on degree of competition; four basic market structures?
• What is the term for the percentage that is levied on the value of the tax base, such as income or property?
• What is the quantity demanded and supplied when the market is in equilibrium?
• When a government spends more than it collects in revenues over a period, this is called?
• Which concept explains how initial spending leads to a larger overall change in spending throughout the economy?
• Goods and services that are used collectively and that no one can be excluded from using; public goods are not priced by markets; examples include national defense and clean air.
• Which circumstance would help mitigate crowding-out?
• A card authorizing the user to access his or her own funds on deposit in a bank account; a debit card can be used to buy goods and services or to withdraw money directly from an account.
• What term refers to the price at which the quantity demanded equals the quantity supplied?
• Which tax takes a smaller share of income as income increases and may fall more heavily on lower-income individuals?
• Which term describes the effect that government spending has on subsequent rounds of spending by others?
• Which form of business typically has perpetual existence and is separate from its owners, with the ability to issue shares?
• Maximum price set by the government to prevent prices from rising too high, such as rent ceilings?
• Which concept describes producing a good at a lower opportunity cost than another producer?
• Which economic system is characterized by the means of production being mostly privately owned and operated for profit?
• What is the term for spreading investments across different asset types to reduce risk?
• Which tax is described as taking the same share of income at all income levels?
• A business owned by two or more co-owners who share profits and are legally responsible for the business's debts.
• Which form describes a business owned by two or more co-owners who share profits and are legally responsible for the business's debts?
• Which statement is NOT a consequence of crowding-out?
• Negotiations between an employer and a group of employees, usually represented by a labor union, to determine the terms of employment are called what?
• Which measure tracks changes in the cost of living and is widely used to gauge inflation?
• Which monetary policy is designed to slow the money supply in order to reduce inflation?
• A unit of government created to set and enforce standards for a particular industry.
• Which term refers to the direct exchange of goods or services without money?
• Which term describes a good that is used or consumed jointly with another product and has greater value when paired with its complement?
• The amount of money borrowed, or the amount still owed on a loan, excluding interest.
• Which term describes a loss of economic welfare that arises from a tax but provides no offsetting gain to taxpayers or the government?
• A method of lowering risk by investing in a wide variety of financial assets.
• Using money with the intention of making a financial gain.
• Which measure reflects the portion of the labor force that is unemployed and seeking work?
• Which concept describes the economic law that links price to the quantity supplied?
• Which term is a measure of the efficiency with which goods and services are produced, often stated as output per hour per worker?
• What term describes the willingness and ability to take the risk of starting and managing a business?
• Which term describes income earned when selling or renting a factor of production?
• What policy centers on controlling the money supply and interest rates to influence the economy?
• Which term refers to the direct exchange of goods or services without money, a practice common in traditional economies?
• Which policy would most directly reduce crowding-out by lowering government deficits?
• The fairness with which an economy distributes its resources and wealth is known as what?
• Which concept explains why a country should specialize in producing the good for which it has the lowest opportunity cost?
• What is the term for any factor that motivates a person to do something, including prices, taxes, and laws?
• A business owned by shareholders who have limited liability for the firm's debts; because it is considered a legal entity, a corporation can conduct business affairs in its name.
• Which term refers to the pay disparity that can exist between different demographic groups in the labor market?
• Controlled distribution of a limited supply of a good or service?
• In a perfectly competitive market, prices are determined by what forces?
• Which tax takes a larger share of income as income rises?
• Which policy describes government actions intended to influence the level of economic activity via taxation and spending?
• What is another name for the periodic payment for borrowed funds, calculated as a percentage of the amount borrowed?
• The idea that a tax system should be fair; although people agree with tax equity in principle, they often disagree on how to achieve it.
• A business owned and managed by one person.
• Which of the following describes the tools, machines, and buildings used to produce goods and services?
• What term describes the portion of the population that has paid work or is seeking work, excluding active military personnel?
• Which concept involves establishing prices or standards to influence behavior?
• Which term describes a business organization jointly owned and operated by a group of individuals for their mutual benefit?
• Which tax system applies the same tax rate to all taxpayers, regardless of income?
• The percentage of the population that has a family income below a government-defined threshold, or poverty line.
• What term describes the allocation of separate tasks to different people, with production organized around specialization?
• Who directly benefits from higher interest rates caused by crowding-out?
• Which concept describes the fairness of wealth distribution within an economy?
• Which economic system leaves most decisions about production and consumption to individual producers and consumers?
• What policy involves adjusting government spending and taxation to influence the economy?
• Which concept describes the measure of efficiency as output per unit of input?
• Which term describes anything owned that has a market value?
• Which term refers to nonwage compensation such as health insurance and paid vacation?
• The percentage increase in the average price level from one period to the next is called what?
• Which group is directly affected by higher borrowing costs due to government borrowing?
• An economic system in which decisions about production and consumption are based on custom and tradition.
• Which term describes the resources used to produce goods and services, such as land, labor, and capital?
• Market structure with many producers supplying an identical product; prices set by supply and demand?
• What method compares the costs and benefits of an action to decide if it is worth taking?
• Which term refers to nonwage compensation offered to workers in addition to pay, such as health insurance plans and paid vacations?
• The allocation of the burden of a tax between consumers and producers; tax incidence is said to fall on the group that bears the burden of tax, no matter from whom the tax is collected.
• A card authorizing the user to buy goods and services with funds borrowed from the bank, store, or other business that issued the card.
• A resource that everyone has access to and that can easily be overused or destroyed; examples include the atmosphere and the oceans.
• What term refers to physical articles produced for sale or use, such as food, clothing, and cars?
• Which branch focuses on advising how things ought to be done?
• The power of a government to take private property for public use if the owner is fairly compensated.
• The crowding-out effect operates through which market when the government borrows heavily?
• A law that prohibits employers from making union membership a requirement for getting or keeping a job is known as what?