Which is the most important function of banks in an economy?
A.
extending credit
B.
guarding savings
C.
providing mutual fund options
D.
managing employee pay systems
__________
Customers cannot purchase every product. How does this fact affect companies that make products?
A.
They increase costs to make up for low sales.
B.
They decrease quality to make up for low sales.
C.
They provide better value so that customers choose their products.
D.
They provide fewer options so that customers choose their products.
________________________
Which of the following is a cost of production? Select the two correct answers.
A.
improving processes
B.
buying raw materials
C.
spending time working
D.
paying property taxes
E.
choosing the best products
________________
Three Basic Economic Questions
What to produce?
How to product it?
??
Use the table to answer the question.
What is the third Basic Economics Question?
A.
How much to produce?
B.
For whom to produce?
C.
Where to produce?
D.
What natural resources are used to produce?
________________
Which of the following economic actions demonstrates a negative incentive?
A.
An employee is fired.
B.
An item is put on sale.
C.
The cost of production decrease.
D.
The board of a company invests more.
__________
Which government action would interfere with free trade?
A.
increasing taxes on domestic producers
B.
charging duty taxes on foreign goods
C.
adding a value-added tax to consumer goods
D.
giving contracts to factories in other countries
________________________
What is an effect of the division of labor?
A.
Consumers are offered better choices.
B.
Investors pay more to start companies.
C.
Producers work more quickly.
D.
Employees learn how to produce an entire product.
______________
Which is true of how the market sets prices?
A.
Prices are set by the expected sales.
B.
Prices are set by how much consumers will pay.
C.
Prices are set by the size and location of market outlets.
D.
Prices are set by doubling the equilibrium price.
__________________________
Imagine that the amount of milk being purchased in the United States suddenly decreased.
Which of the following is the most likely cause?
A.
increased price of milk
B.
increased supply of milk
C.
decreased demand for milk
D.
decreased competition for milk
___________
Imagine your town has a local bike store called Brianna’s Bikes. After years of good business, a larger competing chain store opens up across the street. This new store, David’s Bike Depot, offers specials such as a family pack of helmets for a lower price and free bike tune-ups with a minimum purchase.
Use the passage to answer the question.
Which positive effects would likely result from this new competition? Select the two correct answers.
A.
fewer choices
B.
better prices
C.
higher quality
D.
higher wages
Imagine your town has a local bike store called Brianna’s Bikes. After years of good business, a larger competing chain store opens up across the street. This new store, David’s Bike Depot, offers specials such as a family pack of helmets for a lower price and free bike tune-ups with a minimum purchase.
Use the passage to answer the question.
Which positive effects would likely result from this new competition? Select the two correct answers.
A.
fewer choices
B.
better prices
C.
higher quality
D.
higher wages
Imagine your town has a local bike store called Brianna’s Bikes. After years of good business, a larger competing chain store opens up across the street. This new store, David’s Bike Depot, offers specials such as a family pack of helmets for a lower price and free bike tune-ups with a minimum purchase.
Use the passage to answer the question.
Which positive effects would likely result from this new competition? Select the two correct answers.
A.
fewer choices
B.
better prices
C.
higher quality
D.
Please help :)
higher wages
Economics basics pretest
1.A
2.C
3.B and C
4.B
5.A
6.B
7.C
8.B
9.A
10.B and C
u welcome 100%
Heads up my dudes, time for the quick check:
1. A, B, E
2. C
3. B
4. B
( credit to "UnaLoca" )