Economics Unit Test

Economics Unit Test

1. Identify the science that deals with the production, distribution, and consumption of commodities.
2. What is another way to describe commodities?
3. Which branch of economics deals with the performance, structure, behavior, and decision making of an economy as a whole?
4. Which branch of economics studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources?
5. In addition to the United States, which nation (in 2014) had a nominal GDP of 5000 Billion U.S. dollar or more?
6. (through 8.) List the three types of macroeconomic systems with regards to who makes the decisions about economic activities.
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9. Economic resources are commonly called another term. What is it?
10. Which factor of production is described by the natural resources utilized for production?
11. Which factor of production is described by the human capital available to produce?
12. Which factor of production is described as the monetary resources and infrastructure available to facilitate production?
13. Which factor of production is described as “putting the others together” and sometimes considered a type of Labor?
14. One tool governments use to influence the economy is described as adjusting the supply of money in an economy. Identify the term so described.
15. One tool governments use to influence the economy is described as adjusting government taxation and spending in an economy. Identify the term so described.
16. Historically, governments utilized colonies as an economic tool to provide raw materials and markets for goods. Which term describes this colonial economic relationship?
17. Identify the term defined as a symbol that represents the value of various quantities of various resources, or “stored wealth”.
18. Which type of money derives its value from the commodity which it is made?
19. Which type of money derives its value from it being a claim on an amount of a commodity?
20. Which type of money derives its value from the decree that it has value?
21. Which term describes a situation of abundance of resources?
22. Which term describes a lack of sufficient resources?
23. Briefly describe the relationship between price and quantity as described by the Law of Supply.
24. Briefly describe the relationship between price and quantity as described by the Law of Demand.
25. Keynes’s Law focuses on the importance of demand to increase economic productivity. Which historical event influenced Keynes’s focus on the necessity of government intervention to create demand?
26. What does Say’s Law suggest as the key to economic growth?