Honors Economics - PRETEST (Test of Economic Literacy)

This test is designed to measure your understanding of economics. Not all students will have taken a separate course in economics, but most have learned something about the subject in their other courses, through reading newspapers, listening to the radio, watching television, or from some other source. These questions will measure how well you understand the principles of economics and the way our economy works.

You should try to answer EVERY question by marking what you think is the best choice. You might not know the answers to some questions, but use the information you DO have to eliminate those you think are incorrect and select your best answer. Work at a comfortable speed, but do not spend too much time on any one item. The test consists for 40 questions or incomplete statements, for which you should choose the ONE BEST ANSWER. With some items more than one answer may appear to be correct, but your task is to choose the BEST answer.