Questions and Guide Answers
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1. Based on the economic principles of supply and demand, a surplus in the
availability of corn will most likely have which of the following effects?
A. decreased corn prices for consumers
B. increased prices for consumers
C. decreased demand from consumers
D. increased demand from consumers
Answer: A. decreased corn prices for consumers
2. At the end of an episode of a television show, Susan realizes that there is
only one more episode left in the series. She is excited to see the end and
considers finishing the series that evening, but she decides to wait in order to
get enough sleep and not be tired the next day.
,Susan's decision making process provides an example of which economic
concept?
A. circular flow
B. supply and demand
C. macroeconomics
D. cost-benefit analysis
Answer: D. cost-benefit analysis
3. Which Texas region is least hospitable to agriculture?
A. Gulf Coastal Plains
B. High Plains
C. Central Plains
D. Mountain and Basin
Answer: D. Mountain and Basin
4. According to Adam Smith, what is the impact of the invisible hand on the
economy?
A. companies control demand based on the quantity of a product they pro-
,duce
B. people can create new companies with few obstacles from the government
C. prices will fluctuate based on people acting in their own self interest
D. government regulation provides all business the opportunity to succeed
Answer: C. prices will fluctuate based on people acting in their own self interest
5. Read the following excerpt from the Inaugural Address by John F. Kennedy,
January 20, 1961.
Now the trumpet summons us again - not as a call to bear arms, though
arms we need; not as a call to battle, though embattled we are - but a call to
bear the burden of a long twilight struggle, year in and year out, 'rejoicing in
hope, patient in tribulation'- a struggle against the common enemies of man
tyranny, poverty, disease, and war itself.
Can we forge against these enemies a grand and global alliance, North and
South, East and West, that can assure a more fruitful life for all mankind? Will
you join in that historic effort?
In the long history of the world, only a few generations have been granted the
role of defending freedom in its hour of maximum danger. I do not shirk from
this responsibility - I welcome it. I do not believe that any of us would exchange
, places with any other people or any other generation. The en
Answer: C. communism
6. A student in a social studies class has selected the Korean War as a topic for his
research paper. What should his first step be?
A. Analyze the data for relevant information
B. Formulate questions to focus his research
C. Locate as many primary sources of data possible
D. Review the literature
Answer: B. Formulate questions to focus his research
7. Which of the following is an example of cultural diffusion?
A. While on a family vacation in Greece, a mother encourages her child to try
new foods, but the child refuses to eat anything unfamiliar.
B. A family immigrated to a new country and shared foods and traditions
from their culture with their new neighbors. Those neighbors eventually begin
cooking some of the foods themselves.
C. An individual attends college in a foreign country and struggles to speak
and understand the language spoken there.