Practice Quiz

Praxis II: Economics Content Knowledge Exam Prep - Question List

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71. Imagine that the consumer price index rises from 125 to 250. What can be concluded from this information?
  1. Consumer incomes are all doubled
  2. Consumer incomes are cut in half
  3. All prices in the average consumer’s market basket are doubled
  4. All prices in the given economy are doubled
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72. Economics is the study of how people:
  1. Allocate societal resources by purchasing goods and services
  2. Gain access to local and foreign markets
  3. Produce goods and services at the lowest production costs
  4. Make profits and reduce unemployment
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73. Which of the following is the term for the economic indicator that measures change in price over time, using a fixed market basket of average services and goods?
  1. Phillip’s Curve
  2. CPI
  3. MPC
  4. GDP
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74. What is the system in the United States in which only a portion of total deposits is reserved and the rest is lent out?
  1. Liquidity
  2. Fractional reserve banking system
  3. Central bank policy
  4. Open market operations
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