1 | Page
Virtual SC economics CP final exam
Questions and Answers
It is generally believed that a sales tax
a) hurts the poor
b) hurts the wealthy
c) is the only fair tax
d) is unfair to the middle class
Ans: Correct Answer: A
The study of economics involves ________________
a) explaining how people deal with scarcity
b) studying how things are made, bought, sold, and used
c) explaining how incomes are earned and how jobs are created
d) all of these
Ans: Correct Answer: D
Which of the following descriptions best explains the meaning of
opportunity cost?
a) the initial cost of starting a new business
b) the cost of business failure
c) the cost of choosing one alternative over another
d) the risk associated with producing a new item
Ans: Correct Answer: C
A nation's wealth is determined by its ______________
a) accumulation of all tangible and intangible resources
b) natural resources
c) accumulation of all tangible products
d) product possibilities frontier
Ans: Correct Answer: C
© 2025 All rights reserved
, 2 | Page
Consumers waiting in long lines for a new product is an example
of ___________
a) consumerism
b) consumer rights
c) consumer responsibilities
d) scarcity
Ans: Correct Answer: D
The efficient use of scarce resources leads to an increase in
____________
a) productivity
b) investment
c) scarcity
d) capital
Ans: Correct Answer: A
The most comprehensive measure of a nation's wealth is provided
by its ______________
a) gross domestic product
b) TINSTAAFL rating
c) product possibilities curve
d) capital goods
Ans: Correct Answer: A
When a business needs to decide whether a certain action is worth
the cost, the most helpful analysis would be a(n) ___________
a) production possibility comparison
b) cost-benefit analysis
c) economic model
d) needs assessment
Ans: Correct Answer: B
What is the main cause of a change in quantity demanded?
a) substitution
b) changes in revenue
c) change in price
© 2025 All rights reserved
, 3 | Page
d) the income effect
Ans: Correct Answer: C
What is the relationship between income and demand?
a) a decrease in income increases demand
b) a decrease in price decreases income
c) an increase in price increases income
d) an increase in income increases demand
Ans: Correct Answer: D
When the price of something increases, the quantity demanded
___________
a) increases
b) decreases
c) remains unchanged
d) reverses
Ans: Correct Answer: B
Which is an example of a public good?
a) a rock band
b) a car
c) the army
d) bread
Ans: Correct Answer: C
Which market structure is defined by a single producer?
a) pure competition
b) monopolistic competition
c) oligopoly
d) monopoly
Ans: Correct Answer: D
Which of these best describes the influence of high prices on the
behavior of producers?
a) they are an incentive for producers to produce more
© 2025 All rights reserved
Virtual SC economics CP final exam
Questions and Answers
It is generally believed that a sales tax
a) hurts the poor
b) hurts the wealthy
c) is the only fair tax
d) is unfair to the middle class
Ans: Correct Answer: A
The study of economics involves ________________
a) explaining how people deal with scarcity
b) studying how things are made, bought, sold, and used
c) explaining how incomes are earned and how jobs are created
d) all of these
Ans: Correct Answer: D
Which of the following descriptions best explains the meaning of
opportunity cost?
a) the initial cost of starting a new business
b) the cost of business failure
c) the cost of choosing one alternative over another
d) the risk associated with producing a new item
Ans: Correct Answer: C
A nation's wealth is determined by its ______________
a) accumulation of all tangible and intangible resources
b) natural resources
c) accumulation of all tangible products
d) product possibilities frontier
Ans: Correct Answer: C
© 2025 All rights reserved
, 2 | Page
Consumers waiting in long lines for a new product is an example
of ___________
a) consumerism
b) consumer rights
c) consumer responsibilities
d) scarcity
Ans: Correct Answer: D
The efficient use of scarce resources leads to an increase in
____________
a) productivity
b) investment
c) scarcity
d) capital
Ans: Correct Answer: A
The most comprehensive measure of a nation's wealth is provided
by its ______________
a) gross domestic product
b) TINSTAAFL rating
c) product possibilities curve
d) capital goods
Ans: Correct Answer: A
When a business needs to decide whether a certain action is worth
the cost, the most helpful analysis would be a(n) ___________
a) production possibility comparison
b) cost-benefit analysis
c) economic model
d) needs assessment
Ans: Correct Answer: B
What is the main cause of a change in quantity demanded?
a) substitution
b) changes in revenue
c) change in price
© 2025 All rights reserved
, 3 | Page
d) the income effect
Ans: Correct Answer: C
What is the relationship between income and demand?
a) a decrease in income increases demand
b) a decrease in price decreases income
c) an increase in price increases income
d) an increase in income increases demand
Ans: Correct Answer: D
When the price of something increases, the quantity demanded
___________
a) increases
b) decreases
c) remains unchanged
d) reverses
Ans: Correct Answer: B
Which is an example of a public good?
a) a rock band
b) a car
c) the army
d) bread
Ans: Correct Answer: C
Which market structure is defined by a single producer?
a) pure competition
b) monopolistic competition
c) oligopoly
d) monopoly
Ans: Correct Answer: D
Which of these best describes the influence of high prices on the
behavior of producers?
a) they are an incentive for producers to produce more
© 2025 All rights reserved
