Economics Question Paper

Name/Student Number:

Economics Final Exam College Prep Program

Completion
Complete each statement. 1. The hope of reward that encourages a person to behave in a certain way is a(n) _______.

2. A bridge is an example of something that is usually provided as a _________.

3. To show how demand for a good will change at specific price points, economists use a ____.

4. People will buy more of a good when its price falls and less when its price rises, according to the _______.

5. The rate the Federal Reserve charges banks for loaning them money is the
_____________________.

Fill in the Blank.
Identify the word(s) that best complete(s) the statement or answers the question. 6. A __________ _________ __________ shows the relationship between the production of any two categories of goods.

7. Open opportunity, private property, contracts, voluntary exchange are basic principles that are fundamental to __________ _____________ ____________.

8. When government intervention causes the supply of a good to rise, the supply curve shifts to the __________.

9. Elena is looking for an apartment. The fact that Elena misses two days of work at the supermarket to visit several different apartments available for rent is an example of her
_________ costs.

10. GoodDeeds International is structured like many other major companies, but its goal is to benefit society, not to make money. GoodDeeds is a __________ organization.

11. The __________________ arranges stock and bond trading of top U.S. and world companies.

12. Scientific research affects ___________ growth by improving the way things are made.

13. The federal income tax is a _____________ tax because the higher the income a person has, the higher the percentage that person pays in tax.

14. Funding for most ____________ universities comes from state sales taxes and state income taxes.

15. Congress changed the structure of the ____________ in 1935 to allow district banks to work together

Short Answer
Answer the following questions using complete sentences. 16. How do resources and technology affect a country’s production possibilities?

17. Consider the centrally planned economy of the Soviet Union or China. Choose one and explain how its experience shows the problems with a centrally planned economy.

18. Why was the New Hampshire state legislature unable to take control of Dartmouth College?

Critical Thinking and Writing
Directions:
Use complete sentences to answer the questions below. 19. A company has a monopoly on a glue used in TVs and phones. The company can make as much of the glue as it wants. It chooses to make less glue than it is able. Why?

20. Describe how developed countries differ from developing countries in regard to city population and infrastructure.