• 40 questions

GACE Economics Practice Test

Unofficial questions on microeconomics, macroeconomics and personal finance, spread like the three testlets of GACE Economics (719).

A florist owns a delivery van. Which factor of production is the van?

Pick an answer, then press Check answer. Then you see Correct or Not quite, with the reason. Keys: A to D pick, Enter checks.

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Exam mode: 40 questions, 60 minutes.

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Unofficial practice questions, not affiliated with the Georgia Professional Standards Commission or Pearson. Bank checked October 12, 2026.

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All 40 questions

Microeconomics 12

  • A bakery raises the price of a loaf from $4.00 to $5.00, and daily sales fall from 200 loaves to 180. Using simple percent changes, what is the price elasticity of demand, and how is demand described? Wikipedia, "Price elasticity of demand". Written to GACE Economics (719) testlet 237, objective 0003
  • A corporation fails owing $2 million. A stockholder paid $5,000 for her shares. What is the most she can normally lose? Wikipedia, "Limited liability". Written to GACE Economics (719) testlet 237, objective 0002
  • A farmer near Tifton has one field, which can grow peanuts or cotton this year. She plants peanuts. What is the opportunity cost of that choice? Wikipedia, "Opportunity cost". Written to GACE Economics (719) testlet 237, objective 0001
  • A firm has paid $10,000, which it cannot get back, for a market study. It must now decide whether to launch the product. How should the $10,000 count in that decision? Wikipedia, "Sunk cost". Written to GACE Economics (719) testlet 237, objective 0001
  • A florist owns a delivery van. Which factor of production is the van? Wikipedia, "Factors of production". Written to GACE Economics (719) testlet 237, objective 0001
Show all 40 questions (35 more)

Microeconomics, continued

  • A state sets the top legal price of gasoline at $2 a gallon when the market price would be $3. What does the supply and demand model predict? Wikipedia, "Shortage". Written to GACE Economics (719) testlet 237, objective 0003
  • A town has dozens of restaurants. Each has its own menu and style, and new ones open easily. Which market structure is this? Wikipedia, "Monopolistic competition". Written to GACE Economics (719) testlet 237, objective 0002
  • In a centrally planned (command) economy, who mainly decides what is produced and in what amounts? Wikipedia, "Planned economy". Written to GACE Economics (719) testlet 237, objective 0002
  • In the circular flow model, where do households sell their labor to firms? Wikipedia, "Factor market". Written to GACE Economics (719) testlet 237, objective 0003
  • Three firms supply nearly all the cement in a region. When one of them cuts its price, the other two soon follow. Which market structure is this? Wikipedia, "Oligopoly". Written to GACE Economics (719) testlet 237, objective 0002
  • Weekly demand for a snack is Qd = 120 − 3P and weekly supply is Qs = 2P − 30. At what price and quantity does the market clear? Wikipedia, "Economic equilibrium". Written to GACE Economics (719) testlet 237, objective 0003
  • With the same workers and factories that could turn out 500 tractors and 2,000 tons of wheat, an economy makes 400 tractors and 1,500 tons. Where does this output plot on a production possibilities graph? Wikipedia, "Production–possibility frontier". Written to GACE Economics (719) testlet 237, objective 0001

Macroeconomics 16

  • A country produces a real GDP of $600 billion and has 20 million people. What is its real GDP per capita, a common gauge of the standard of living? Wikipedia, "Gross domestic product". Written to GACE Economics (719) testlet 238, objective 0003
  • A county has 47,000 residents with jobs and 3,000 without jobs who are looking for work. Another 20,000 adults are retired or not looking. What is the unemployment rate? Wikipedia, "Unemployment". Written to GACE Economics (719) testlet 238, objective 0001
  • A government lets in no more than 1 million tons of foreign sugar a year. Which trade barrier is this? Wikipedia, "Import quota". Written to GACE Economics (719) testlet 238, objective 0004
  • A state pays for technical training for thousands of workers. Which source of long-run economic growth is it building? Wikipedia, "Human capital". Written to GACE Economics (719) testlet 238, objective 0003
  • Congress has assigned the Federal Reserve two goals for its monetary policy. Which two? Federal Reserve Board, What economic goals does the Federal Reserve seek to achieve through its monetary policy?. Written to GACE Economics (719) testlet 238, objective 0002
  • The consumer price index was 200 last year and is 208 this year. What was the rate of inflation? Wikipedia, "Consumer price index". Written to GACE Economics (719) testlet 238, objective 0001
  • The Federal Reserve buys Treasury securities from banks on the open market. What is the direct effect? Wikipedia, "Open market operation". Written to GACE Economics (719) testlet 238, objective 0002
  • For one year a country records household consumption of $1,300 billion, investment of $320 billion, government purchases of $410 billion, exports of $250 billion and imports of $280 billion. What is GDP by the expenditure approach? Wikipedia, "Gross domestic product". Written to GACE Economics (719) testlet 238, objective 0001
  • How many regional Federal Reserve Banks operate in the Federal Reserve System? Federal Reserve Board, The Fed Explained: Who We Are. Written to GACE Economics (719) testlet 238, objective 0002
  • In a recession, which pair of actions is expansionary fiscal policy? Wikipedia, "Fiscal policy". Written to GACE Economics (719) testlet 238, objective 0003
  • In a year Country Z sells $310 billion of goods abroad and buys $265 billion of goods from abroad. What is its balance of trade? Wikipedia, "Balance of trade". Written to GACE Economics (719) testlet 238, objective 0004
  • In an hour a worker in Country A makes 6 shirts or 2 radios. A worker in Country B makes 4 shirts or 4 radios. Which country has the comparative advantage in radios? Wikipedia, "Comparative advantage". Written to GACE Economics (719) testlet 238, objective 0004
  • In one fiscal year a government collects $4.4 trillion and spends $6.1 trillion. What is the $1.7 trillion gap called? Wikipedia, "Government budget balance". Written to GACE Economics (719) testlet 238, objective 0003
  • Twelve Federal Reserve officials meet at least eight times a year to decide U.S. monetary policy. What is this group called? Federal Reserve Board, The Fed Explained: Who We Are. Written to GACE Economics (719) testlet 238, objective 0002
  • The U.S. dollar appreciates against the euro. Other things equal, what happens to U.S. trade with Europe? Wikipedia, "Currency appreciation and depreciation". Written to GACE Economics (719) testlet 238, objective 0004
  • Welders at a plant lose their jobs for good when robots take over the work, and their skills do not match the openings nearby. Which type of unemployment is this? Wikipedia, "Structural unemployment". Written to GACE Economics (719) testlet 238, objective 0001

Financial literacy 12

  • A $12,000 car loan is repaid in 48 monthly payments of $290. How much interest does the borrower pay in all? Worked from the figures in the question and worked a second time. Written to GACE Economics (719) testlet 501, objective 0003
  • A cashier earns gross wages of $1,400 for two weeks. Social Security tax is withheld at 6.2% and Medicare tax at 1.45%. What is the total of the two? IRS, Topic no. 751, Social Security and Medicare withholding rates. Written to GACE Economics (719) testlet 501, objective 0001
  • A driver has collision coverage with a $500 deductible. A covered repair costs $3,200. How much does the insurer pay? Wikipedia, "Deductible". Written to GACE Economics (719) testlet 501, objective 0002
  • A lender quotes a loan at 6.5% interest and a 6.9% APR. Why is the APR higher? Consumer Financial Protection Bureau, What is the difference between a loan interest rate and the APR?. Written to GACE Economics (719) testlet 501, objective 0003
  • A savings bond earns 4% a year, compounded yearly. By the rule of 72, about how many years does its value take to double? Wikipedia, "Rule of 72". Written to GACE Economics (719) testlet 501, objective 0001
  • After a data breach, a consumer wants to stop anyone from opening new credit in her name. Which free tool restricts access to her credit report? Consumer Financial Protection Bureau, What is a credit freeze or security freeze on my credit report?. Written to GACE Economics (719) testlet 501, objective 0002
  • An investor lends a company money for ten years and is paid interest twice a year. What did the investor buy? Investor.gov (U.S. Securities and Exchange Commission), Bonds. Written to GACE Economics (719) testlet 501, objective 0003
  • Dana takes home $2,900 a month. Her fixed expenses are $1,750 and her variable expenses are $820. She wants to save $400 a month. By how much must she cut spending? Worked from the figures in the question and worked a second time. Written to GACE Economics (719) testlet 501, objective 0001
  • Marcus keeps $190,000 in a money market deposit account and $85,000 in checking at the same FDIC-insured bank, both in his name alone. How much of his money is over the insurance limit? FDIC, Understanding Deposit Insurance. Written to GACE Economics (719) testlet 501, objective 0002
  • On the first day of a job a worker fills out Form W-4. What is the form for? IRS, About Form W-4, Employee's Withholding Certificate. Written to GACE Economics (719) testlet 501, objective 0001
  • What may a consumer request once a year, at no charge, from each of the three major consumer reporting companies? Consumer Financial Protection Bureau, How do I get a free copy of my credit reports?. Written to GACE Economics (719) testlet 501, objective 0002
  • Which investment pools money from many investors and puts it into stocks, bonds or money-market instruments? Investor.gov (U.S. Securities and Exchange Commission), Mutual Funds. Written to GACE Economics (719) testlet 501, objective 0003

How this list was compiled: Our own questions, written to the framework of the GACE Economics (6–12) assessment (719) on the GACE website of the Evaluation Systems group of Pearson, https://www.gace.es.pearson.com/studyguide/framework/719 and https://www.gace.es.pearson.com/test/719, read 2026-10-12: three testlets of about 30, 40 and 30 selected-response questions (237 Microeconomics; 238 Macroeconomics; 501 Financial Literacy), 100 in all, with equal objective shares inside each testlet. This bank holds 12, 16 and 12, four questions for each of the ten objectives. Every fact was read on the page named under its question, each opened 2026-10-12: Wikipedia articles and pages of the Federal Reserve Board, the IRS, the FDIC, the Consumer Financial Protection Bureau and Investor.gov. The 15 answers that are arithmetic were each worked a second time. Licence: Questions, choices and explanations are original work of this site.

How it works

This GACE economics practice test asks 40 questions of our own on Economics (6–12), test 719, the content assessment for Georgia economics teachers. It is unofficial and not affiliated with the Georgia Professional Standards Commission or Pearson.

Read the full guide

The three testlets

Macroeconomics (238) is the largest, about 40 of the 100 questions. Microeconomics (237) and Financial Literacy (501) have about 30 each. This bank holds 16, 12 and 12, four questions for each of the ten objectives.

Clock and exam mode

The real clocks are 45 minutes for Microeconomics, 60 for Macroeconomics and 45 for Financial Literacy. Exam mode here gives 60 minutes for 40 questions, the same minute and a half each.

Questions with figures

15 of the 40 are worked with numbers, such as GDP, the unemployment rate, elasticity and comparative advantage. No graph is drawn: demand and supply are given as equations or in words.

  • The Federal Reserve is a quarter of the Macroeconomics testlet: know the Board, the 12 Reserve Banks, the FOMC and the dual mandate.

Questions and answers

How many questions are on the GACE economics test?

It has 100 selected-response questions in three testlets. The three clocks total 2 hours 30 minutes, plus 15 minutes per session for a tutorial and a nondisclosure agreement.

What is a passing score on the GACE economics test?

The GACE site asks for 220 total cumulative points or higher and for the floor, a minimum score, on each testlet. This page gives a number right, never a pass or a fail.

Are there study guides for GACE economics?

Yes: the GACE website has a study guide for Economics (6–12), test 719, organized by the same three testlets. These questions are written to its objectives, and none is taken or reworded from its sample questions.

Is financial literacy on the GACE economics test?

Yes. Financial Literacy is testlet 501, one of the three. Its objectives cover financial planning, consumer protection and risk, and investing, credit and debt. The GACE page lists no reference materials for this test.

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