Name______Period______Date______
Mid-Term Exam Packet (Part 1):
Unit 1:
1. Define Economics:
2. Land, Labor, and Capital are the factors of production. Give an example of each below:
Land:
Labor:
Physical Capital:
Human Capital:
3. What is the difference between a trade-off and an opportunity cost?
4. Which of the following do economists consider scarce?
A. WoodB. Drinking Water
C. Precious MetalsD. All of the Above
5. (Draw a circle around the trade-off and a square around the opportunity cost in the following sentences): Big Bird has $10 and decides to spend it on birdseed. If he hadn’t spent the money on birdseed, he would have bought Ernie a new lamp. Oscar got mad at Big Bird and yelled, ”you could have bought me a new lid for my trashcan, you selfish jerk!”
6. A Production Possibilities Curve shows all the potential ways that a country can use its limited resources. Use the PPC below to answer the following questions:
A. What is the opportunity cost of producing 60 butter rather than 30 butter?
B. What is the opportunity cost of producing 50 guns rather than 0 guns?
7. Because everything is scarce, we have to satisfy our ______wants with our ______resources. Therefore, everyone has to make ______.
Unit 2:
8. When quantity supplied is exactly equal to quantity demanded, it means that sellers and buyers have “agreed” on a price. In other words, sellers will provide exactly the amount that buyers are willing to sell. We call this point on the supply and demand graph the ______price.
9. The Law of ______states that as price increases, quantity ______decreases.
10. The Law of ______states that as price increases, quantity ______increases.
11. Does the chart below show a price floor or a price ceiling?
12. Sales tax is an example of what kind of tax (circle the correct answer)?
Progressive, Proportional, Flat, or Regressive
13. Chips and salsa are an example of ______products. Therefore, if the price of chips increases, the demand for salsa will ______.
14. Margarine and butter are an example of ______products. Therefore, if the price of margarine increases, the demand for butter will ______.
15. What kind of income tax do we have in the United States (circle the correct answer)?
Progressive, Proportional, Flat, or Regressive
16. Which of the following people is an entrepreneur?
A. A woman who starts her own magazine and hires a staff of 20 employees.
B. A man who writes commercial jingles and sells them to major TV networks.
C. A teacher who discovers the cure for laziness and wins the praise and admiration of
his peers for thousands of years.
D. A stock market investor who makes millions in the hedge fund industry
Unit 3:
17. Label the points of the business cycle…
A.
B.
C.
D.
18. Define Gross Domestic Product (GDP):
19. Give an EXAMPLE of each of the following…
A. Structural Unemployment:
B. Seasonal Unemployment:
C: Frictional Unemployment: