Unofficial practice for MTTC Economics (007): markets, the national economy, trade, personal finance and economics in history, geography and government.
75:00
Pick an answer, then press Check answer.Then you see Correct or Not quite, with the reason.Keys: A to D pick, Enter checks.
Print covers the next 50 questions. Share this set copies a link to the same questions in the same order.
Exam mode: 50 questions, 75 minutes.
Your totals on this device
0answered
0right
none yetpercent right
none yetbest exam score
Seen 0 of 50 questions
More options
Which questions to ask
Missed and Flagged fill up as you go.
Unofficial practice questions, not affiliated with the Michigan Department of Education or Pearson. Bank checked October 13, 2026.
A city sets a legal maximum rent below the market equilibrium. What is the predicted result?Wikipedia, Shortage (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 002 (the market economy).
A firm wants the level of output that gives the greatest profit. Which rule finds it?Wikipedia, Profit maximization (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 002 (the market economy).
A graduate turns down one job that pays $38,000 and another that pays $35,000 in order to spend the year in a full-time training program. Tuition aside, what is the opportunity cost of the year of training?Wikipedia, Opportunity cost (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 001 (economic terms, concepts and systems).
A lighthouse guides every passing ship, whether or not its owner paid, and one ship's use leaves the light undimmed for others. Why do private markets tend to undersupply such a good?Wikipedia, Public good (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 002 (the market economy).
Show all 50 questions (46 more)
Economic concepts and systems, continued
A theater raises its ticket price by 10 percent, and the number of tickets sold falls by 20 percent. What follows?The answer rests on the text printed in the question and on the wording of the objective (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 002 (the market economy).
Dozens of hair salons compete in one city. Each offers its own styles and service and sets its own prices. Which market structure is this?Wikipedia, Monopolistic competition (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 002 (the market economy).
In a recession many of a country's factories sit partly idle. Where is the economy operating relative to its production possibilities curve?Wikipedia, Production-possibility frontier (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 001 (economic terms, concepts and systems).
In a village, each family farms the way its ancestors did and trades by long-settled custom. Which type of economic system answers the basic economic questions this way?Wikipedia, Traditional economy (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 001 (economic terms, concepts and systems).
The price of butter rises sharply. Other things equal, what happens in the market for margarine, a substitute?Wikipedia, Substitute good (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 002 (the market economy).
Which feature marks a sole proprietorship?U.S. Small Business Administration, Choose a business structure (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 002 (the market economy).
Which of these is a capital resource for a bakery?Wikipedia, Factors of production (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 001 (economic terms, concepts and systems).
Which view is Milton Friedman best known for?Wikipedia, Monetarism (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 001 (economic terms, concepts and systems).
Macroeconomics 10
A county counts 9,000 employed residents, 1,000 jobless residents who are searching for work, and 5,000 adults who neither work nor search. Which unemployment rate does it report?Wikipedia, Unemployment (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 003 (the national economy).
A tax takes $1,000 from a household earning $20,000 and $3,000 from a household earning $100,000. How is this tax classed?Internal Revenue Service, Understanding Taxes: Regressive Taxes (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 004 (fiscal and monetary policy).
Automated checkouts replace cashiers, who lack the training for the technical jobs now on offer. What type of unemployment is this?Wikipedia, Structural unemployment (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 003 (the national economy).
Each month a statistical agency prices the same market basket of goods and services that households buy. Which indicator is it compiling?Wikipedia, Consumer price index (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 003 (the national economy).
The economy is in a deep recession. Which fiscal policy is expansionary?Wikipedia, Fiscal policy (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 004 (fiscal and monetary policy).
The Federal Reserve buys Treasury securities from dealers in order to steer short-term interest rates. Which tool of monetary policy is it using?Board of Governors of the Federal Reserve System, Open Market Operations (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 004 (fiscal and monetary policy).
The Federal Reserve's "dual mandate" pairs two goals. One is stable prices. What is the other?Board of Governors of the Federal Reserve System, What economic goals does the Federal Reserve seek to achieve through its monetary policy? (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 004 (fiscal and monetary policy).
In the business cycle, which stretch of time is a recession?National Bureau of Economic Research, Business Cycle Dating (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 003 (the national economy).
Nominal GDP rose 5 percent last year while prices rose 3 percent. Why do economists look at real GDP to judge growth?Wikipedia, Real gross domestic product (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 003 (the national economy).
Who votes on the Federal Open Market Committee?Board of Governors of the Federal Reserve System, Federal Open Market Committee (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 004 (fiscal and monetary policy).
International economics 10
A country cannot pay for its imports or service its foreign debt and turns to an international body for an emergency loan tied to policy reforms. Which body is it most likely to approach?Wikipedia, International Monetary Fund (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 006 (international development).
A country that once ran on central plans sells its state firms and lets markets set prices. What do economists call an economy making this change?Wikipedia, Transition economy (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 006 (international development).
The euro rises from $1.00 to $1.25. A U.S. factory still prices its drill at $100. What happens to the drill's price for a buyer in Germany, and to U.S. exports?The answer rests on the text printed in the question and on the wording of the objective (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 005 (international trade).
The European single market rests on "four freedoms." What moves freely among member states?Wikipedia, European single market (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 005 (international trade).
The Human Development Index ranks countries by more than income. Which three dimensions does it combine?United Nations Development Programme, Human Development Index (HDI) (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 006 (international development).
To shelter its dairy farmers, a country lets in a fixed tonnage of foreign cheese each year and not a pound more. Which trade barrier is this?Wikipedia, Import quota (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 005 (international trade).
What is the main work of the World Bank?Wikipedia, World Bank Group (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 006 (international development).
What makes a firm a multinational corporation?Wikipedia, Multinational corporation (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 005 (international trade).
Which three countries are parties to the trade agreement that took effect on July 1, 2020, in place of NAFTA?Office of the United States Trade Representative, United States-Mexico-Canada Agreement (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 005 (international trade).
With the same resources, Country X can grow 10 tons of wheat or make 5 tons of steel, and Country Y can grow 6 tons of wheat or make 2 tons of steel. Which pattern of trade follows from comparative advantage?The answer rests on the text printed in the question and on the wording of the objective (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 005 (international trade).
Consumer economics and personal finance 5
A couple asks how much of their money federal deposit insurance would cover if their bank failed. What is the basic limit?Federal Deposit Insurance Corporation, Deposit Insurance FAQs (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 007 (consumer economics and personal finance).
A student deposits $1,000 in an account that pays 5 percent interest, compounded once a year, and makes no withdrawals. How much is in the account after two years?The answer rests on the text printed in the question and on the wording of the objective (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 007 (consumer economics and personal finance).
An investor spreads her savings among many stocks, bonds and funds instead of buying one company's stock. What is this strategy called, and what is it for?U.S. Securities and Exchange Commission, Investor.gov: Diversification (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 007 (consumer economics and personal finance).
Two applicants earn the same salary. One has paid every bill on time for ten years, and the other has missed several payments. Why will their credit scores differ?Consumer Financial Protection Bureau, What is a credit score? (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 007 (consumer economics and personal finance).
Two lenders quote the same interest rate on a home loan, but one quotes a higher annual percentage rate. What does the higher APR tell the borrower?Consumer Financial Protection Bureau, What is the difference between a mortgage interest rate and an APR? (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 007 (consumer economics and personal finance).
Interdisciplinary perspectives 13
A steel mill is built on a lakeshore, with iron ore arriving by ship from the north and coal by rail from the south. Which factor of economic geography best explains the site?The answer rests on the text printed in the question and on the wording of the objective (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 009 (geography and economics).
A student wants a monthly measure of how hopeful households feel about the economy and their own finances. Which reference source fits?Wikipedia, Consumer confidence (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 011 (core democratic values and public policy questions).
A table of trade statistics lists a country's exports of goods at $310 billion and its imports of goods at $265 billion for the year. What does the table show?The answer rests on the text printed in the question and on the wording of the objective (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 011 (core democratic values and public policy questions).
A teacher wants one graphic that shows how a single year of federal spending is divided among defense, health, Social Security and other categories. Which format suits the data best?The answer rests on the text printed in the question and on the wording of the objective (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 011 (core democratic values and public policy questions).
During Britain's Industrial Revolution, one industry adopted modern production methods before any other and came to lead in employment and output. Which was it?Wikipedia, Industrial Revolution (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 008 (history and economics).
Federal Reserve historians call one failure the Fed's most serious sin of omission in the Great Depression. What was it?Federal Reserve History, The Great Depression (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 008 (history and economics).
In 1913 a plant in Highland Park, Michigan, began building cars on a moving assembly line. What did the method do for the industry?Wikipedia, Highland Park Ford Plant (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 008 (history and economics).
Orchards crowd a belt of West Michigan near the Lake Michigan shore. What about the location favors fruit?Wikipedia, Fruit Belt (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 009 (geography and economics).
Under the Soviet five-year plans that began in 1928, who decided what factories would produce and in what amounts?Wikipedia, Five-year plans of the Soviet Union (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 010 (political science and economics).
Under the U.S. Constitution, which level of government may coin money?National Archives, The Constitution of the United States: A Transcription (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 010 (political science and economics).
What did the opening of the St. Lawrence Seaway in 1959 change for Great Lakes ports?Wikipedia, St. Lawrence Seaway (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 009 (geography and economics).
Where in Michigan is the Copper Country, the nation's leading producer of copper from 1845 until 1887?Wikipedia, Copper mining in Michigan (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 008 (history and economics).
Which New Deal law of 1935 created a federal system of old-age benefits paid for by payroll taxes?Wikipedia, Social Security Act (read 2026-10-13). Outline: MTTC Economics (007) test objectives, objective 010 (political science and economics).
How this list was compiled: Our own questions, written to the test objectives of the Michigan Test for Teacher Certification (MTTC) field 007, Economics, as the MTTC site prints them (https://www.mttc.nesinc.com/Content/STUDYGUIDE/MI_SG_obj_007.htm and the test page https://www.mttc.nesinc.com/TestView.aspx?f=HTML_FRAG/MI007_TestPage.html, read 2026-10-13): Economic concepts and systems, 25%; Macroeconomics, 20%; International economics, 20%; Consumer economics and personal finance, 10%; Interdisciplinary perspectives, 25%; 100 multiple-choice questions, 2 hours 30 minutes of testing time, passing score 220. This bank holds 50 questions, spread 12, 10, 10, 5, 13 over those subareas. Every fact was read on 2026-10-13 in the public page named under its question: the Federal Reserve Board, Federal Reserve History, the National Bureau of Economic Research, the Internal Revenue Service, the Office of the U.S. Trade Representative, the Small Business Administration, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, Investor.gov, the United Nations Development Programme, the National Archives, and the Wikipedia article named for each remaining question. 7 questions rest on the numbers or the set-up printed in the question and on the wording of the objective. Licence: Questions, passages, choices and explanations are original work of this site.
How it works
This free MTTC Economics practice test asks 50 questions of our own for field 007, with a timed exam. Unofficial: not affiliated with the Michigan Department of Education or Pearson, and no question comes from the real test.
Read the full guide
What field 007 covers
By the test objectives read October 13, 2026: economic concepts and systems 25%, macroeconomics 20%, international economics 20%, consumer economics and personal finance 10%, and interdisciplinary perspectives 25%. This bank holds 12, 10, 10, 5 and 13. The timed exam draws all 50 for 75 minutes, the pace of the real test.
Questions you work out
Eight answers come from arithmetic: an opportunity cost, an elasticity, an unemployment rate, a regressive tax, comparative advantage, an exchange rate, compound interest and a trade balance. Each explanation shows the working.
Where the answers come from
Each explanation names its page: the Federal Reserve, the Consumer Financial Protection Bureau, the FDIC, Investor.gov, another agency or a named Wikipedia article. Seven rest on what the question itself prints.
Objective 008 names Michigan's economic history: iron ore and copper mining, developments in transportation, and automobile manufacturing.
Objectives 001 to 007 each include a teaching task: strategies, assessment, standards and technology for that topic.
Questions and answers
How many questions are on the MTTC Economics test?
One hundred, all multiple choice, on a computer. The test page allows 2 hours 30 minutes for them; a 15-minute tutorial and nondisclosure agreement bring the appointment to 2 hours 45 minutes.
What is the passing score for MTTC Economics?
220. MTTC results are scaled scores from 100 to 300, and the Michigan Department of Education sets the passing score. Economics carries endorsement code CA.
Does the MTTC Economics test cover personal finance?
Yes. Subarea IV, consumer economics and personal finance, is about 10% of the test: budgets, credit, consumer rights and protection, insurance, saving, investing, and the institutions that provide financial services.