FBLA Exploring Economics Practice Test

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• What is allocative efficiency?
• Which economic system features some government participation but not to an extreme level?
• Relative or real price indicates what aspect of a product?
• What does the term "ceteris paribus" mean?
• In economic terms, what does 'capital' often refer to?
• What happens to the marginal product of labor as more labor is combined with fixed inputs?
• Which of the following best defines labor in a production context?
• Which of the following describes the responsibilities of an entrepreneur?
• What is a characteristic of voluntary exchange in economics?
• What does 'land' refer to in economic terms?
• Which term describes the situation when a country exports more than it imports?
• What is the main characteristic of socialism?
• Which market structure is characterized as a price taker?
• Which of the following describes the implications of a natural monopoly?
• Which of the following influences the number of buyers in a market?
• What aspect does gross national expenditure specifically include?
• What is the main purpose of representation through a graph?
• Why do economies face the need for choice?
• Who is considered a shareholder?
• In what kind of market structure would you expect consumer surplus to be maximized?
• What is a key feature of inelastic goods or services?
• Which of the following is NOT a characteristic of social costs?
• What does scarcity refer to in economic terms?
• What does absolute advantage imply?
• What are net exports?
• What does dissaving indicate?
• Which term represents the price aspect that reflects income sensitivity?
• Which of the following describes entitlement spending?
• What does resource substitutability refer to?
• What are corporate profits?
• How does a shift in demand typically affect equilibrium price?
• What term describes the relationship between resource scarcity and economic choices?
• What distinguishes indirect taxes from direct taxes?
• Which aspect of corporate benefits can impact real take-home pay?
• What characterizes a single proprietorship?
• How is net immigration defined?
• What would be an outcome of effective privatization?
• What does market demand illustrate?
• What are considered capital resources in economics?
• What does real take-home pay take into account?
• In competitive market structures, what happens to economic profits in the long run?
• What does elasticity of supply refer to?
• Which market structures have economic profits that are competed away by new firms in the long run?
• Which factor would most likely decrease consumer surplus?
• What does the exchange rate represent?
• What does consumer surplus measure?
• In terms of consumer behavior, why is consumer surplus important?
• Which of the following best defines a tariff?
• What is meant by market failure?
• What does limited liability entail for investors in a corporation?
• What characterizes a natural monopoly?
• Which of the following best defines financial capital?
• Which of the following is a goal of antitrust law?
• Which of the following factors may lead to productive efficiency?
• What defines profit in a business context?
• What constitutes a correct fiscal policy response to a recession caused by a decrease in aggregate demand?
• What is meant by producer surplus?
• Which of the following adequately describes the factors of production?
• What is privatization?
• What is an inferior good?
• Who typically comprises a board of directors?
• What does GDP measure?
• What characteristic defines a proportional tax?
• In economic terms, what does inflation affect?
• What best defines a partnership in business?
• What does inflation refer to?
• Which statement best describes firms in an economic context?
• What term describes mandatory spending in the budget?
• What does interest represent in economic terms?
• What determines the supply of a good?
• Which year did GDP become the official measure of the U.S. economy?
• What role do unions play for workers in terms of labor rights?
• What type of payment is defined as pay by the week or month?
• Which of the following describes the effect of quotas?
• Which of the following statements is true regarding most firms?
• Which of the following best defines markets?
• Which of the following factors does NOT directly impact demand?
• What are axes in relation to a graph?
• What is disposable income?
• Which of the following best describes a corporation?
• Mercantilism emphasizes which of the following for national wealth?
• What function does money serve when used as a medium of exchange?
• What is a possible consequence of high consumer wants in an economy?
• Which of the following scenarios illustrates consumer surplus?
• Which term describes the process of spending more than one's income?
• What does the substitution effect describe?
• What does equilibrium refer to in economics?
• What does normal profit represent in economics?
• What is the term for spending to acquire consumer goods and services or using up those goods to satisfy wants?
• What is a likely consequence of implementing trade barriers?
• How is per capita income calculated?
• How is the labor force generally defined?
• What is the primary aim of antitrust laws?
• What is likely the result of expansionary fiscal policy?
• What does natural increase refer to in population studies?
• What does GDP stand for?
• What is a primary characteristic of profit?
• Which term describes the limitless desires or wishes people have for goods or services?
• What is deflation?
• In Marxian economics, what is surplus value?
• What is the optimal level of pollution for society?
• When a consumer expects to pay less for a product than the actual market price, what is the result?
• What happens to demand for a complementary good when the price of its related good rises?
• What does the Standard of Living illustrate regarding economic opportunities?
• What is a potential consequence of expansionary fiscal policy?
• What do liabilities generally refer to?
• What aspect does the Production Possibilities Curve NOT illustrate?
• What is the monetary base often referred to as?
• Which statement best describes the relationship between consumer surplus and market price?
• Which of the following is a determinant of demand?
• In which market structures are economic profits possible in the long run?
• What typically happens to consumer surplus in a perfectly competitive market?
• What does the term diminishing returns refer to?
• What is a quota in economic terms?
• Which of the following describes money?
• How do banks typically treat their liabilities?
• If consumers expect a surplus for a product, what is the likely effect on their demand for that product today?
• What is the purpose of monetary policy?
• What is the general term applied to the earnings of the labor factor of production?
• Which of the following exemplifies a capital good?
• What is deregulation?
• What does social cost refer to in economics?
• What defines the balance of trade for a country?
• Capitalism is characterized by which of the following features?
• What role does competition play in consumer surplus?
• What does competition refer to in an economic context?
• What is fiscal policy primarily concerned with?
• What is not a function of resources in economics?
• Which scenario is an example of involuntary unemployment?
• What happens to consumer surplus when there is a decrease in product prices?
• What notable trend regarding air pollution is observed in lower developed countries?
• Which statement best describes a market economy?
• What characterizes a surplus in a market?
• What does size distribution of income refer to?
• What is the primary goal of monetary policy?
• What distinguishes a corporation from other business forms?
• What does the law of demand state?
• Why is choice necessary in the production of goods and services?
• What does 'labor' refer to in economics?
• What is price discrimination?
• What does the capital account record in a country's balance of payments?
• Macroeconomics is primarily concerned with which of the following?
• What is the primary focus of investing in economics?
• Which of the following best describes inflation?
• When does a market experience disequilibrium?
• Which of the following is NOT a function of money?
• What describes the law of demand?
• What is a complementary good?
• What does the term 'laissez-faire' mean?
• What does fiscal policy primarily deal with?
• How can consumer surplus be used by businesses?
• What do current dollars refer to?
• How is national income generally defined?
• When do firms achieve profit maximization?
• What does the balance of trade record?
• What does the Iron Law of Wages suggest about wage levels?
• Which term refers to taxes that producers pass to consumers as part of product pricing?
• What is the effect of an increasing price on quantity demanded according to the law of demand?
• What is the primary purpose of labor unions?
• Which of the following is an example of government spending?
• What is meant by productive efficiency?
• Why is consumer expectation of price vital to understanding consumer surplus?
• What characterizes price inelastic demand?
• What is the primary function of a central bank?
• What causes involuntary unemployment?
• A change in demand is illustrated by what shift in a graph?
• What was GDP designed to replace as a measure of economic performance?
• Which scenario represents the concept of 'natural increase' in a population?
• What are constant dollars often referred to as?
• What happens in a market during price inelastic demand?
• What is an interest rate?
• Which of the following best defines equity in the context of income distribution?
• What is the significance of the balance of trade for a country?
• What does Gross Domestic Product (GDP) measure?
• Which type of tax has a fixed rate regardless of the taxpayer's income level?
• What is human capital defined as?
• In legal terms, what is a tort?
• How is government spending defined?
• How can technological advances impact supply?
• How is absolute price defined?
• What occurs in a market with excess demand?
• What are inventories?
• What does depreciation refer to in an economic context?
• What does inelastic demand imply about consumer behavior?
• What does a graph typically represent in economics?
• What defines comparative advantage in production?
• What is the income effect related to?
• What is entrepreneurship primarily concerned with?
• Which approach to pollution control has shown dramatic results in decreasing pollution?
• What is typically referred to as pay by the hour?
• What is a mixed market economy characterized by?
• What are resources in economics?
• What is the effect of using constant dollars in economic analysis?
• What does the term "price" refer to in economics?
• What is a key characteristic of corporations compared to sole proprietorships?
• What is the definition of a monopoly?
• What is included in Gross National Expenditure (GNE)?
• What is the definition of investing?
• How is consumer surplus graphically represented in economic models?
• In the context of economics, what does 'net' typically indicate?
• What does the Production Possibilities Curve demonstrate?
• What is the primary purpose of trade barriers?
• What is a primary characteristic of frictional unemployment?
• Money can act as a store of value, which means it can...
• What role do tariffs typically serve in an economy?
• What defines a competitive firm in economics?
• In a perfect competition market, what is the role of a competitive firm?
• What does the natural rate of unemployment represent?
• Which economic concept is closely related to consumer surplus?
• Which of the following would likely create scarcity?
• What is net investment?
• How is real income defined?
• Which of the following is NOT a key aspect of laissez-faire economics?
• When does a country experience absolute advantage?