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Quizzes > High School Quizzes > Social Studies

Economics End-of-Semester Practice Quiz

Master your midterm, final, and semester tests

Difficulty: Moderate
Grade: Grade 11
Study OutcomesCheat Sheet
Colorful paper art promoting Economics Exam Blitz, a dynamic trivia quiz for high school students.

What does scarcity refer to in economics?
Abundance of resources
Excess production
Limited resources relative to unlimited wants
High consumer demand
Scarcity means resources are limited relative to the endless wants of people. This fundamental concept forces individuals and societies to make choices about how to best allocate their resources.
Which of the following best describes opportunity cost?
The profit earned
The total cost incurred
The next best alternative that was forgone
The amount spent on production
Opportunity cost is defined as the value of the next best alternative that is foregone in order to pursue a certain action. It highlights the trade-offs inherent in every decision.
In a market economy, which element is most central to the allocation of resources?
Prices determined by supply and demand
Family traditions
Government planned production
Foreign aid allocations
Market economies use prices determined by supply and demand to allocate resources efficiently. These price signals help coordinate producer and consumer behavior.
What is the primary function of money in an economy?
A medium of exchange
All of the above
A unit of account
A store of wealth
Money serves multiple functions: it acts as a medium of exchange, a store of wealth, and a unit of account. These roles enable efficient transactions and help maintain orderly economic activity.
Which term describes the general increase in prices over time?
Inflation
Deflation
Recession
Stagflation
Inflation refers to the general rise in the price level over time. It signifies a reduction in the purchasing power of money, prompting economic adjustments.
Which curve in economics illustrates the relationship between price and the quantity demanded?
Lorenz curve
Production possibility frontier
Supply curve
Demand curve
The demand curve shows the inverse relationship between the price of a good and the quantity demanded. As the price falls, typically, the quantity demanded increases.
What determines the equilibrium price in a competitive market?
Government price setting
Consumer preferences only
Intersection of supply and demand
Producer cost structures only
Equilibrium price is found where the supply and demand curves intersect. At this price, the quantity supplied equals the quantity demanded, balancing the market.
Which event is most likely to shift the demand curve to the right?
An increase in the price of substitutes
An increase in consumer income
A decrease in population
A decrease in consumer preferences
An increase in consumer income generally boosts demand for normal goods, shifting the demand curve to the right. This change represents greater purchasing power and a higher willingness to buy at each price level.
How does a decrease in the cost of production affect the supply curve?
It shifts the supply curve to the right
It does not affect the supply curve
It shifts the demand curve to the right
It shifts the supply curve to the left
A decrease in production costs enables producers to supply more at every price level. This results in a rightward shift of the supply curve, indicating an increased market supply.
Which economic system is characterized by private property and market-driven decisions?
Feudalism
Socialism
Capitalism
Communism
Capitalism is marked by private ownership and market-based decision making. The system relies on competition and the forces of supply and demand to drive economic activity.
What is elasticity a measure of in economics?
Fixed cost structures
Responsiveness of quantity demanded or supplied to a change in price
Total demand in the market
Profit margins only
Elasticity measures how much the quantity demanded or supplied changes in response to a change in price. This concept is crucial for analyzing consumer behavior and market dynamics.
Which of the following best represents a public good?
A personal vehicle
A subscription service
National defense
A private corporate office
National defense is a classic example of a public good as it is non-excludable and non-rivalrous. This means everyone benefits from it, and one person's consumption does not diminish another's.
Which economic indicator measures the total output of goods and services produced in a country?
Interest Rate
Unemployment Rate
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
GDP represents the total monetary value of all finished goods and services produced within a country. It serves as a primary indicator of a nation's economic performance.
What is fiscal policy primarily concerned with?
Consumer protection laws
Trade regulations
Monetary supply and interest rates
Government spending and taxation
Fiscal policy involves the government's decisions on spending and taxation. It is used to influence economic growth, stabilize the economy, and manage inflation.
How does a decline in consumer income affect the demand for inferior goods?
No effect
Decrease demand
Increase supply
Increase demand
Inferior goods typically see an increase in demand when consumer income declines because buyers shift to more affordable substitutes. This behavior contrasts with that for normal goods, where demand falls with lower income.
How does an inelastic demand curve typically affect total revenue when prices increase?
Total revenue remains constant
Total revenue increases
Total revenue becomes unpredictable
Total revenue decreases
When demand is inelastic, consumers do not reduce their quantity demanded significantly in response to a price increase. As a result, total revenue increases because the higher price compensates for a small drop in quantity.
In the long run, how do firms in a perfectly competitive market earn zero economic profits?
Firms are inefficient in the long run
Government intervention eliminates profits
Entry of new firms drives down prices until profits are zero
Costs always rise to offset any profit margins
In a perfectly competitive market, if firms earn above-normal profits, new entrants are attracted, increasing supply and pushing prices down. This process continues until only normal (zero economic) profits remain.
Which policy is likely to be used to combat inflation?
Contractionary monetary policy
Decrease interest rates
Expansionary fiscal policy
Increase government spending
Contractionary monetary policy reduces the money supply and raises interest rates to temper spending and slow down an overheating economy. This policy tool is commonly used to fight inflation.
How does a tariff impact domestic and foreign markets?
It raises domestic prices while reducing imports
It eliminates competition entirely
It mostly benefits consumers by reducing prices
It lowers domestic prices while increasing exports
Tariffs impose an extra cost on imported goods, making them less competitive compared to domestic products. This often results in higher domestic prices and a reduction in the volume of imports.
Which model helps economists understand the trade-offs between the production of two goods, demonstrating opportunity cost?
Supply and Demand Model
IS-LM Model
Production Possibility Frontier
Heckscher-Ohlin Model
The Production Possibility Frontier (PPF) graphically illustrates the maximum achievable outputs of two goods given available resources. It effectively demonstrates the concept of opportunity cost by showing the trade-offs involved in reallocating resources.
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Study Outcomes

  1. Analyze key economic concepts relevant to exam questions.
  2. Evaluate economic theories and their practical applications.
  3. Understand fundamental economic principles in high school curriculum.
  4. Apply critical thinking to assess economic problem-solving techniques.
  5. Identify strengths and areas for improvement in economic understanding.

Economics Semester Exam Review Cheat Sheet

  1. Scarcity & Opportunity Cost - Resources are finite while our desires seem endless, so every decision involves a trade-off. That trade-off creates an opportunity cost - the value of the next best option you didn't pick. Mastering this idea lays the groundwork for savvy economic thinking. The 51 Key Economics Concepts
  2. Supply & Demand - Imagine a seesaw where price tips the balance between what sellers are willing to offer and what buyers demand. As price climbs, supply swells and demand shrinks, and the opposite happens when price falls. The point they meet is called market equilibrium, which keeps the economic playground stable. 10 Must-Know Basic Economic Concepts for AP® Economics
  3. Price Elasticity - Elasticity measures how sensitive demand or supply is to price twists. High elasticity means consumers or producers respond dramatically to price changes, like a rubber band snapping. Low elasticity shows they barely flinch, which happens with must-have items or scarce resources. Comprehensive Economics Test Prep Guide
  4. Market Structures - Markets can be wildly different based on the number of players and barriers to entry: perfect competition, monopolistic competition, oligopoly, and monopoly. Each structure influences how firms set prices and level up their strategies. Recognizing these types helps you predict real-world price wars or collusions. Comprehensive Economics Test Prep Guide
  5. Government's Economic Role - Governments step in through fiscal policy (taxes and public spending) and monetary policy (money supply and interest rates) to steer the economy. They can dial up growth during recessions or cool things down during booms. Understanding these tools is like having the ultimate economic toolkit. National Economics Standards
  6. Gross Domestic Product (GDP) - GDP is the grand total of all goods and services produced within a country's borders over a set period. It's the go-to yardstick for measuring economic health and growth. Watching GDP trends can tell you when an economy is sprinting or hitting the brakes. National Economics Standards
  7. Business Cycle - Economies roll through peaks of expansion and troughs of contraction in a recurring cycle. During expansions, jobs and incomes rise; during contractions, they slow down or shrink. Spotting where we are in the cycle can offer clues for businesses and policymakers. Comprehensive Economics Test Prep Guide
  8. Inflation & Deflation - Inflation is when the general price level climbs over time, nibbling away at your purchasing power. Deflation is the opposite - falling prices that might sound nice but can freeze spending and stall growth. Balancing these forces keeps the economy humming smoothly. National Economics Standards
  9. Comparative Advantage - Even if one producer is better at everything, specializing where you have the lowest opportunity cost boosts total output. Countries or individuals trade to capitalize on these efficiencies, making everyone better off. Embracing this principle is like unlocking the secret to global teamwork. The 51 Key Economics Concepts
  10. Circular Flow Model - This model shows money, goods, and resources cycling between households and firms in a never‑ending loop. Households sell labor and buy products, while firms hire and produce goods. It's the economic ecosystem that keeps the lights on and the wheels turning. 10 Must-Know Basic Economic Concepts for AP® Economics
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