Econ Pre and Post Test
Total number of questions:60
Standards covered: (HS.E2.1)(HS.E1.1)(HS.E1.2)(HS.E3.1)(HS.E3.2)(HS.E4.2) (HS.E5.1)
(HS.E2.2)(HS.E3.3)(HS.E1.4) (HS.E4.3)
[Test Begins]
1) The condition that results from society not having enough resources to produce all the things
that people would like to have is… (HS.E2.1)
A. Aggregate Demand
B. Cost-benefit
C. Scarcity
D. Interdependence
2) The study of how people try to satisfy seemingly unlimited and competing needs and wants
through the careful use of relatively scarce resources is…(HS.E1.1)
A. Specialization
B. Value
C. Economics
D. Production
3) A basic requirement for survival, including food, clothing, and shelter is a…(HS.E1.2)
A. Want
B. Need
C. Desire
D. Goal
4) Something that we would like to have, but is not necessary for survival is a…(HS.E1.1)
A. Need
B. Gift
C. Debt
D. Want
5) A tangible economic product that is useful, transferable to others is a…(HS.E3.1)
A. Want
B. Habit
C. Debt
D. Good
6) If something can be physically touched, then it is…(HS.E3.1)
A. Defined
B. Tangible
C. Immaterial
D. Intangible
7) Something that lasts for at least three years when used regularly is a…(HS.E3.2)
A. Nondurable good
B. Durable Supply
C. Durable Need
D. Durable good
8) Work or labor performed by someone, such as a doctor, lawyer, or teacher, is
called…(HS.E1.2)
A. Markets
B. Services
C. Charity
D. Enterprises
9) The worth of something as measured in monetary terms is its…(HS.E3.1)
A. Value
B. Cost
C. Benefit
D. Incidence of Tax
10) The apparent contradiction between the high value of a nonessential item and the low value
of an essential item is the…(HS.E3.2)
A. Contradiction of Terms
B. Oxymoron of Worth
C. Incongruity of Inefficiency
D. Paradox of Value
11) The ability or capacity of something to be useful and give satisfaction to someone. (HS.E1.1)
A. Jejune
B. Utility
C. Laissez-faire
D. Banality
12) In The Wealth of Nations, Adam Smith referred specifically to what element of a nation’s
people as the source of its wealth? (HS.E3.1)
A. Ability and skills
B. Rest
C. Natural resources
D. Parenting
13.) What is the monetary value of all final goods, services, and structures produced within a
country’s national borders within a one-year period called? HS.E3.2
a.) Metafinances
b.) Per capita
c.) Macroindicator
d.) Gross Domestic Product
14.) What tax structure taxes people with higher incomes at higher percentages? HS.E1.2
a.) Proportional
b.) Progressive
c.) Flat
d.) Regressive
15.) When looking at credit scores, what factor least affects your credit score? HS.E1.3
a.) Payment history
b.) Amounts owed
c.) Credit history length
d.) New credit lines
16.) A person paying a higher deductible will typically have _________, when specifically
dealing with insurance. HS.E1.5
a.) Lower premiums
b.) Smaller returns
c.) Higher inflation
d.) Greater risk
17.) What is the next best alternative use of money, time, or resources when one choice is made
instead of another? HS.E1.4
a.) Opportunity cost
b.) Outcome Analysis
c.) Opportunity risk
d.) Barter
18.) What happens when you use a credit card instead of a debit card? HS.E1.3
a.) You are making a commercial loan
b.) You’re borrowing money from a bank
c.) You promise to pay the store later
d.) You’re withdrawing from your account
19.) What information form do you typically need when filing your taxes? HS.E1.2
a.) n-95
b.) w-2
c.) c-1040
d.) s-2319
20.) What is the percentage paid to a lender for the use of borrowed money called? HS.E1.3
a.) Credit
b.) Loan
c.) Interest
d.) Grant
21.) What is the difference between a liability and an asset? HS.E1.1
a.) Liability is what you owe and asset is what you already own
b.) Asset is what you owe and Liability is what you already own
c.) They are both the same
d.) Liability is the consequence for not making on-time payments.
22.) All of the following are types of income EXCEPT… HS.E1.1
a.) Wage
b.) Salary
c.) Inheritance
d.) Commission
23.) When a nation’s total output of goods and services increases over time, it is experiencing
what? HS.E3.2
a.) Inflation
b.) Economic Indicators
c.) Stagnation
d.) Economic growth
24.) Land, Capital, and Labor: Which of the Four Factors of Production is missing? HS.E3.2
a.) Work
b.) Property
c.) Entrepreneurship
d.) Resources
25) The amount of output produced in a specific time period with a given amount (HS.E4.2)
A. Output
B. Work Ethos
C. Effect
D. Productivity
26. The economic term for the some of people’s skills, abilities, health, and motivation (HS.E3.1)
A. Workforce
B. Human Capital
C. Wage slaves
D. New hire
27. Assignment of tasks to workers, factories, regions, or nations that can perform them the most
efficiently. (HS.E4.3)
A. Distribution
B. Delegation
C. Specialization
D. Speciation
28. Mutual dependence of the economic activities of one person, company, region, or
nation and another person, company, region, or nation. (HS.E5.1)
A. Economic dependence
B. Economic indenture
C. Economic Autonomy
D. Economic interdependence
29. What is the purpose of a circular flow diagram? (HS.E3.1)
A. It is an illustration used to show how markets connect people and businesses in the
economy
B. It is a pie chart that shows how businesses interact specifically with other businesses
C. It illustrates the merits of capitalism
D. To represent production possibilities curves.
30. What is the purpose of an economic model? (HS.E3.2)
A. to illustrate that stocks that are inexpensive are not worth buying
B. To show that changing environmental factors play a significant role in modern
economies
C. to describe how the economy is expected to perform in the future
D. To illustrate the governmental theory that government spending should not be
restrained by fears of rising debt
31) Something taken for granted; something we think is true. (HS.E1.1)
A. Assumption
B. Fact
C. Opinion
D. Belief
32. Define Standard of living (HS.E1.1)
A. An action or system by which a result is brought about
B. the degree of wealth and material comfort available to a person or community
C. When you buy or obtain something to add to what you already had
D. Our quality of life, based on ownership of necessities and luxuries that make life easier.
For questions 33-35, match the type of economy with its description
33. Economic system in which the allocation of scarce resources, and other economic activity, is
the result of ritual, habit, or custom (HS.E3.1)
A. Traditional
B. Command
C. Market.
D. Mixed
34. Economic system characterized by a central authority (HS.E3.3)
A. Traditional
B. Command
C. Market.
D. Mixed
35. Economic system in which supply, demand, and the price system help people make decisions
and allocate resources (HS.E2.2)
A. Traditional
B. Command
C. Market
D. Mixed
36. The dominant trend of the modern era of resources…(HS.E3.3)
A. the transition of communist and socialist systems to capitalism.
B. The transition of all economies toward mixed economic systems
C. an inexorable transitional progression toward Depression.
D. a consistent transition toward socialism.
37. Choose the correct order of these personal finance steps: (HS.E1.1)
A. 1) Invest in speculative stocks, 2) Plan for retirement, 3) Build an emergency fund
B. 1) Make a budget, 2) Build an emergency fund, 3) Plan for retirement, 4) Invest
C. 1) Take out credit cards, 2) Invest, 3) Build an emergency fund
D. 1) Pay off low interest debt, 2) Save for retirement, 3) Make a budget
38.Conversion of state-owned factories and other properties to private ownership. (HS.E5.3)
A. Populism
B. Monopolization
C. Polarization
D. Privatization
39. If products can be bought and sold without government interference, then we have this
condition. (HS.E5.4)
A. Fixed Markets
B. Managed Economy
C. Free Markets
D. Central Enterprise
40. Economic environment in which GDP decreases in two or more quarters in a row and there
are more workers than jobs. (HS.E4.1)
A. Inflation
B. Stagflation
C. Recession
D. Hyperinflation
41. Buyers and sellers may freely and willingly engage in market transactions, which is called
(HS.E3.1)
A. Voluntary exchange.
B. Compulsory exchange.
C. Profiteering.
D. Free will.
42. The Due Process Clause of which Amendment protects property rights of American citizens?
(HS.E3.3)
A. First
B. Second
C. Thirteenth
D. Fourteenth
43. The extent to which persons or organizations are better off at the end of a period than they
were at the beginning, usually measured in dollars. (HS.E1.4)
A. Loss
B. Debt management
C. Profit
D. Recovery
44. The central bank of the United States that controls monetary policy. (HS.E4.2)
A. The IMF
B. The Credit Union
C. Bank of America
D. The Federal Reserve System
45. Money that has value due to government decree. (HS.E4.3)
A. Fiat
B. Trium Virate
C. Gold Standard
D. Dollar Determinant
46. What are the four main characteristics of money? (HS.E4.3)
A. Durable, intangible, capital, collectible
B. Paper, ink, security strip, portrait
C. Portable, divisible, durable, limited supply
D. Hard to get, hard to keep, easy to spend, backed by central bank
47. What is the Keynseian argument regarding fiscal policy and the U.S. economy? (HS.E4.2)
A. Economies will fix themselves in the long run
B. Governments should intervene in economies when necessary to ensure steady progress
C. Economies are largely unrelated to political agenda
D. Governments should maintain a heavy hand in geopolitics to maintain economic control
48. The Banking Act of 1933 did what to insure customer deposits in case of a bank’s failure?
(HS.E4.3)
A. Allowed the government to print more money
B. Forbade the closure of a bank
C. Created the Federal Deposit Insurance Corporation (FDIC)
D. Created bankruptcy as an option
49) You earn more money on an account the faster that interest does what? (HS.E1.3)
A. Compounds
B. Capitalizes
C. Defers
D. Amortizes
50) Every time that you buy something with a credit card or pay a bill (or pay a bill with a
credit card), who or what is monitoring the transaction and noting it to recalculate your
credit score? (HS.E1.4)
A. The Federal Government
B. A credit bureau
C. A bank
D. The Illuminati
51) The legal terms for the two main parties in a bankruptcy (HS.E4.3)
A. debtor, creditor
C. solvent, insolvent
B. lender, borrower
D. actuary, usurer
52) The most common form of bankruptcy. People with lower incomes and few or no assets
typically go this route. (HS.E4.3)
A. Chapter 13
B. Chapter 7
C. Chapter 11
D. Chapter 9
53) A form of bankruptcy which allows the debtor to keep some or all of their property. A
trustee is appointed to create an appropriate repayment plan with lowered payments.
(HS.E4.3)
A. Chapter 7
B. Chapter 1
C. Chapter 11
D. Chapter 13
54) If you file for bankruptcy, what will happen to debt owed on child support, taxes, or
student loans? (HS.E4.3)
A. It will not be dismissed
B. It will be dismissed
C. Absolutism
D. It enters permanent Deferment
55.) A relatively high tax designed to raise revenue while reducing consumption of a
socially undesirable product (HS.E3.3)
A. Taxonomic nomenclature
B. Sin tax
C. Thumb Tax
D. Artax
56) The way in which income is allocated among families, individuals or other
groups.(HS.E1.2)
A. Generational poverty
B. Favoritism
C. Distribution of income
D. Distribution of Expenditure
57) The final burden of a tax. (HS.E3.3)
A. Fee
B. Inflation of a tax
C. Incidence of a tax
D. Taxation Without Representation
58) Gift money for college, usually need based, that does not have to be paid back unless
you withdraw and owe a refund (HS.E4.3)
A. Stipend
B. Grant
C. Subsidized loan
D. Unsubsidized Loan
59) Student loan that is based on financial need; interest is paid by the US department of
education when not in repayment status(HS.E4.3)
A. Pell Grant
B. Unsubsidized Loan
C. Private Loan
D. Subsidized Loan
60) Which type of economy best describes the United States? (HS.E3.3)
A. Command Economy
B. Market Economy
C. Mixed Economy
D. Traditional Economy
[Test End]
Total number of questions:60
Standards covered: (HS.E2.1)(HS.E1.1)(HS.E1.2)(HS.E3.1)(HS.E3.2)(HS.E4.2) (HS.E5.1)
(HS.E2.2)(HS.E3.3)(HS.E1.4) (HS.E4.3)
[Test Begins]
1) The condition that results from society not having enough resources to produce all the things
that people would like to have is… (HS.E2.1)
A. Aggregate Demand
B. Cost-benefit
C. Scarcity
D. Interdependence
2) The study of how people try to satisfy seemingly unlimited and competing needs and wants
through the careful use of relatively scarce resources is…(HS.E1.1)
A. Specialization
B. Value
C. Economics
D. Production
3) A basic requirement for survival, including food, clothing, and shelter is a…(HS.E1.2)
A. Want
B. Need
C. Desire
D. Goal
4) Something that we would like to have, but is not necessary for survival is a…(HS.E1.1)
A. Need
B. Gift
C. Debt
D. Want
5) A tangible economic product that is useful, transferable to others is a…(HS.E3.1)
A. Want
B. Habit
C. Debt
D. Good
6) If something can be physically touched, then it is…(HS.E3.1)
A. Defined
B. Tangible
C. Immaterial
D. Intangible
7) Something that lasts for at least three years when used regularly is a…(HS.E3.2)
A. Nondurable good
B. Durable Supply
C. Durable Need
D. Durable good
8) Work or labor performed by someone, such as a doctor, lawyer, or teacher, is
called…(HS.E1.2)
A. Markets
B. Services
C. Charity
D. Enterprises
9) The worth of something as measured in monetary terms is its…(HS.E3.1)
A. Value
B. Cost
C. Benefit
D. Incidence of Tax
10) The apparent contradiction between the high value of a nonessential item and the low value
of an essential item is the…(HS.E3.2)
A. Contradiction of Terms
B. Oxymoron of Worth
C. Incongruity of Inefficiency
D. Paradox of Value
11) The ability or capacity of something to be useful and give satisfaction to someone. (HS.E1.1)
A. Jejune
B. Utility
C. Laissez-faire
D. Banality
12) In The Wealth of Nations, Adam Smith referred specifically to what element of a nation’s
people as the source of its wealth? (HS.E3.1)
A. Ability and skills
B. Rest
C. Natural resources
D. Parenting
13.) What is the monetary value of all final goods, services, and structures produced within a
country’s national borders within a one-year period called? HS.E3.2
a.) Metafinances
b.) Per capita
c.) Macroindicator
d.) Gross Domestic Product
14.) What tax structure taxes people with higher incomes at higher percentages? HS.E1.2
a.) Proportional
b.) Progressive
c.) Flat
d.) Regressive
15.) When looking at credit scores, what factor least affects your credit score? HS.E1.3
a.) Payment history
b.) Amounts owed
c.) Credit history length
d.) New credit lines
16.) A person paying a higher deductible will typically have _________, when specifically
dealing with insurance. HS.E1.5
a.) Lower premiums
b.) Smaller returns
c.) Higher inflation
d.) Greater risk
17.) What is the next best alternative use of money, time, or resources when one choice is made
instead of another? HS.E1.4
a.) Opportunity cost
b.) Outcome Analysis
c.) Opportunity risk
d.) Barter
18.) What happens when you use a credit card instead of a debit card? HS.E1.3
a.) You are making a commercial loan
b.) You’re borrowing money from a bank
c.) You promise to pay the store later
d.) You’re withdrawing from your account
19.) What information form do you typically need when filing your taxes? HS.E1.2
a.) n-95
b.) w-2
c.) c-1040
d.) s-2319
20.) What is the percentage paid to a lender for the use of borrowed money called? HS.E1.3
a.) Credit
b.) Loan
c.) Interest
d.) Grant
21.) What is the difference between a liability and an asset? HS.E1.1
a.) Liability is what you owe and asset is what you already own
b.) Asset is what you owe and Liability is what you already own
c.) They are both the same
d.) Liability is the consequence for not making on-time payments.
22.) All of the following are types of income EXCEPT… HS.E1.1
a.) Wage
b.) Salary
c.) Inheritance
d.) Commission
23.) When a nation’s total output of goods and services increases over time, it is experiencing
what? HS.E3.2
a.) Inflation
b.) Economic Indicators
c.) Stagnation
d.) Economic growth
24.) Land, Capital, and Labor: Which of the Four Factors of Production is missing? HS.E3.2
a.) Work
b.) Property
c.) Entrepreneurship
d.) Resources
25) The amount of output produced in a specific time period with a given amount (HS.E4.2)
A. Output
B. Work Ethos
C. Effect
D. Productivity
26. The economic term for the some of people’s skills, abilities, health, and motivation (HS.E3.1)
A. Workforce
B. Human Capital
C. Wage slaves
D. New hire
27. Assignment of tasks to workers, factories, regions, or nations that can perform them the most
efficiently. (HS.E4.3)
A. Distribution
B. Delegation
C. Specialization
D. Speciation
28. Mutual dependence of the economic activities of one person, company, region, or
nation and another person, company, region, or nation. (HS.E5.1)
A. Economic dependence
B. Economic indenture
C. Economic Autonomy
D. Economic interdependence
29. What is the purpose of a circular flow diagram? (HS.E3.1)
A. It is an illustration used to show how markets connect people and businesses in the
economy
B. It is a pie chart that shows how businesses interact specifically with other businesses
C. It illustrates the merits of capitalism
D. To represent production possibilities curves.
30. What is the purpose of an economic model? (HS.E3.2)
A. to illustrate that stocks that are inexpensive are not worth buying
B. To show that changing environmental factors play a significant role in modern
economies
C. to describe how the economy is expected to perform in the future
D. To illustrate the governmental theory that government spending should not be
restrained by fears of rising debt
31) Something taken for granted; something we think is true. (HS.E1.1)
A. Assumption
B. Fact
C. Opinion
D. Belief
32. Define Standard of living (HS.E1.1)
A. An action or system by which a result is brought about
B. the degree of wealth and material comfort available to a person or community
C. When you buy or obtain something to add to what you already had
D. Our quality of life, based on ownership of necessities and luxuries that make life easier.
For questions 33-35, match the type of economy with its description
33. Economic system in which the allocation of scarce resources, and other economic activity, is
the result of ritual, habit, or custom (HS.E3.1)
A. Traditional
B. Command
C. Market.
D. Mixed
34. Economic system characterized by a central authority (HS.E3.3)
A. Traditional
B. Command
C. Market.
D. Mixed
35. Economic system in which supply, demand, and the price system help people make decisions
and allocate resources (HS.E2.2)
A. Traditional
B. Command
C. Market
D. Mixed
36. The dominant trend of the modern era of resources…(HS.E3.3)
A. the transition of communist and socialist systems to capitalism.
B. The transition of all economies toward mixed economic systems
C. an inexorable transitional progression toward Depression.
D. a consistent transition toward socialism.
37. Choose the correct order of these personal finance steps: (HS.E1.1)
A. 1) Invest in speculative stocks, 2) Plan for retirement, 3) Build an emergency fund
B. 1) Make a budget, 2) Build an emergency fund, 3) Plan for retirement, 4) Invest
C. 1) Take out credit cards, 2) Invest, 3) Build an emergency fund
D. 1) Pay off low interest debt, 2) Save for retirement, 3) Make a budget
38.Conversion of state-owned factories and other properties to private ownership. (HS.E5.3)
A. Populism
B. Monopolization
C. Polarization
D. Privatization
39. If products can be bought and sold without government interference, then we have this
condition. (HS.E5.4)
A. Fixed Markets
B. Managed Economy
C. Free Markets
D. Central Enterprise
40. Economic environment in which GDP decreases in two or more quarters in a row and there
are more workers than jobs. (HS.E4.1)
A. Inflation
B. Stagflation
C. Recession
D. Hyperinflation
41. Buyers and sellers may freely and willingly engage in market transactions, which is called
(HS.E3.1)
A. Voluntary exchange.
B. Compulsory exchange.
C. Profiteering.
D. Free will.
42. The Due Process Clause of which Amendment protects property rights of American citizens?
(HS.E3.3)
A. First
B. Second
C. Thirteenth
D. Fourteenth
43. The extent to which persons or organizations are better off at the end of a period than they
were at the beginning, usually measured in dollars. (HS.E1.4)
A. Loss
B. Debt management
C. Profit
D. Recovery
44. The central bank of the United States that controls monetary policy. (HS.E4.2)
A. The IMF
B. The Credit Union
C. Bank of America
D. The Federal Reserve System
45. Money that has value due to government decree. (HS.E4.3)
A. Fiat
B. Trium Virate
C. Gold Standard
D. Dollar Determinant
46. What are the four main characteristics of money? (HS.E4.3)
A. Durable, intangible, capital, collectible
B. Paper, ink, security strip, portrait
C. Portable, divisible, durable, limited supply
D. Hard to get, hard to keep, easy to spend, backed by central bank
47. What is the Keynseian argument regarding fiscal policy and the U.S. economy? (HS.E4.2)
A. Economies will fix themselves in the long run
B. Governments should intervene in economies when necessary to ensure steady progress
C. Economies are largely unrelated to political agenda
D. Governments should maintain a heavy hand in geopolitics to maintain economic control
48. The Banking Act of 1933 did what to insure customer deposits in case of a bank’s failure?
(HS.E4.3)
A. Allowed the government to print more money
B. Forbade the closure of a bank
C. Created the Federal Deposit Insurance Corporation (FDIC)
D. Created bankruptcy as an option
49) You earn more money on an account the faster that interest does what? (HS.E1.3)
A. Compounds
B. Capitalizes
C. Defers
D. Amortizes
50) Every time that you buy something with a credit card or pay a bill (or pay a bill with a
credit card), who or what is monitoring the transaction and noting it to recalculate your
credit score? (HS.E1.4)
A. The Federal Government
B. A credit bureau
C. A bank
D. The Illuminati
51) The legal terms for the two main parties in a bankruptcy (HS.E4.3)
A. debtor, creditor
C. solvent, insolvent
B. lender, borrower
D. actuary, usurer
52) The most common form of bankruptcy. People with lower incomes and few or no assets
typically go this route. (HS.E4.3)
A. Chapter 13
B. Chapter 7
C. Chapter 11
D. Chapter 9
53) A form of bankruptcy which allows the debtor to keep some or all of their property. A
trustee is appointed to create an appropriate repayment plan with lowered payments.
(HS.E4.3)
A. Chapter 7
B. Chapter 1
C. Chapter 11
D. Chapter 13
54) If you file for bankruptcy, what will happen to debt owed on child support, taxes, or
student loans? (HS.E4.3)
A. It will not be dismissed
B. It will be dismissed
C. Absolutism
D. It enters permanent Deferment
55.) A relatively high tax designed to raise revenue while reducing consumption of a
socially undesirable product (HS.E3.3)
A. Taxonomic nomenclature
B. Sin tax
C. Thumb Tax
D. Artax
56) The way in which income is allocated among families, individuals or other
groups.(HS.E1.2)
A. Generational poverty
B. Favoritism
C. Distribution of income
D. Distribution of Expenditure
57) The final burden of a tax. (HS.E3.3)
A. Fee
B. Inflation of a tax
C. Incidence of a tax
D. Taxation Without Representation
58) Gift money for college, usually need based, that does not have to be paid back unless
you withdraw and owe a refund (HS.E4.3)
A. Stipend
B. Grant
C. Subsidized loan
D. Unsubsidized Loan
59) Student loan that is based on financial need; interest is paid by the US department of
education when not in repayment status(HS.E4.3)
A. Pell Grant
B. Unsubsidized Loan
C. Private Loan
D. Subsidized Loan
60) Which type of economy best describes the United States? (HS.E3.3)
A. Command Economy
B. Market Economy
C. Mixed Economy
D. Traditional Economy
[Test End]