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WorksheetsMicro-Economics
Total questions: 45
Worksheet time: 25mins
Name
Class
Date
1.
Scarcity can best be
defined as
a)
A Shortage of a product
b)
Where demand is greater than supply
c)
Unlimited wants vs Limited resources
d)
Limited wants vs unlimited resources
2.
(3) Which of the following
is NOT a consumer good?
a)
a bulldozer at a construction site
b)
a Happy Meal at McDonalds
c)
a pack of Doritos in a vending machine
d)
a television set for sale at an appliance store
3.
(2) Which of the following resources would economists
classify as “capital”?
a)
Raw Bauxite in a South African mine
b)
A hammer used in framing a house
c)
A worker hired to repair engines
d)
Trees used to make paper
4.
The United States has
decided to spend more money on military goods and less on education. The
opportunity cost for spending more money on military goods would be which of
the following?
a)
the satisfaction of destroying our enemies
b)
the money used to fund the military
c)
money to spend on education
d)
better paid soldiers
5.
(5) The nation of Namibia is
working hard to eliminate poverty in the country. The government has taken
ownership of the factors of production, and now everyone is guaranteed a job.
Which of the following most likely represents the type of economic system found
in Namibia?
a)
Market
b)
Command
c)
Mixed
d)
Traditional
6.
The law of demand states that
a)
consumers demand a larger quantity of a good when price is low.
b)
consumer demand increases when price is low.
c)
sellers supply a larger quantity of a good when price is high.
d)
sellers increase supply when price is high.
7.
Movement along the Demand curve to the right is called
a)
decrease in demand
b)
decrease in quantity demanded
c)
increase in demand
d)
increase in quantity demanded
8.
As the price of a good rises in a market, it acts as a signal:
a)
consumers that they should buy a greater quantity of the good.
b)
to producers that they should supply a greater quantity of the good.
c)
to consumer that they should increase their demand for the good.
d)
to producers that they should increase their supply of the good.
9.
When the U.S. government purchases a submarine from a company, the government has made a major transaction in the
a)
factor market
b)
public market
c)
product market
d)
foreign exchange market
10.
The ideal price and level of output occurs where
a)
Marginal Revenue and Marginal Cost cross
b)
MR = AVC
c)
Average Fixed Cost equal ATC
d)
MR = MT
11.
A point above the PPF curve represents
a)
efficiency
b)
inefficiency
c)
Unemployment
d)
Unattainable
12.
When economists measure the responsiveness of consumers to changes in price, they are measuring:
a)
the percentage change in price
b)
the price elasticity of demand.
c)
the price elasticity of supply.
d)
income elasticity.
13.
Organizers of many high-interest sporting events such as the Super Bowl and the World Series usually set ticket prices lower than the equilibrium price, citing fairness to the public as their reason. What names do economists give to the resulting set price and disequilibrium situation?
a)
price ceiling; surplus
b)
price ceiling; shortage
c)
price floor; shortage
d)
price floor; surplus
14.
Organizers of many high-interest sporting events such as the Super Bowl and the World Series usually set ticket prices lower than the equilibrium price, citing fairness to the public as their reason. What names do economists give to the resulting set price and disequilibrium situation?
a)
price ceiling; surplus
b)
price ceiling; shortage
c)
price floor; shortage
d)
price floor; surplus
15.
In which market structure does a firm have greatest control over its product’s price?
a)
perfect competition
b)
monopoly
c)
oligopoly
d)
monopolistic competition
16.
In which market structure does a firm have greatest control over its product’s price?
a)
perfect competition
b)
monopoly
c)
oligopoly
d)
monopolistic competition
17.
Interdependence and price leadership are characteristics of firms in what kind of market structure?
a)
monopoly
b)
oligopoly
c)
monopolistic competition
d)
perfect competition
18.
Interdependence and price leadership are characteristics of firms in what kind of market structure?
a)
monopoly
b)
oligopoly
c)
monopolistic competition
d)
perfect competition
19.
Sharon decided to open a dry-cleaning business. She borrowed some money from her sister and took a loan from a bank. She hired one helper. What is one disadvantage of Sharon’s business?
a)
no separation of ownership and control
b)
ease of organizing the firm
c)
unlimited liability
d)
double taxation
20.
Sharon decided to open a dry-cleaning business. She borrowed some money from her sister and took a loan from a bank. She hired one helper. What is one disadvantage of Sharon’s business?
a)
no separation of ownership and control
b)
ease of organizing the firm
c)
unlimited liability
d)
double taxation
21.
Which of the following is true about a shareholder in a corporation?
a)
A shareholder is part owner of that business.
b)
A shareholder may not share in the earnings of that corporation.
c)
A shareholder may not transfer his share to another party without permission.
d)
A shareholder is liable for any debts accumulated by that corporation.
22.
Which of the following is true about a shareholder in a corporation?
a)
A shareholder is part owner of that business.
b)
A shareholder may not share in the earnings of that corporation.
c)
A shareholder may not transfer his share to another party without permission.
d)
A shareholder is liable for any debts accumulated by that corporation.
23.
Which form of business organization is easiest to organize but is LEAST able to benefit from specialization?
a)
sole proprietorship
b)
partnership
c)
limited partnership
d)
corporation
24.
Which form of business organization is easiest to organize but is LEAST able to benefit from specialization?
a)
sole proprietorship
b)
partnership
c)
limited partnership
d)
corporation
25.
Peggy, a recent college graduate, decides to look for a job instead of going to graduate school. If she is unable to find a job that suits her interests right away, what type of unemployment is she MOST likely experiencing?
a)
structural
b)
seasonal
c)
frictional
d)
cyclical
26.
Peggy, a recent college graduate, decides to look for a job instead of going to graduate school. If she is unable to find a job that suits her interests right away, what type of unemployment is she MOST likely experiencing?
a)
structural
b)
seasonal
c)
frictional
d)
cyclical
27.
The Law of Supply:
a)
Is the exact replica of the Law Of Demand
b)
Reflects producers offering more of a good as its price increases and less as its price falls
c)
Has an inverse relationship with price.
d)
Reflects producers offering less of a good as its price increases and more of as its price falls.
28.
The Law of Supply:
a)
Is the exact replica of the Law Of Demand
b)
Reflects producers offering more of a good as its price increases and less as its price falls
c)
Has an inverse relationship with price.
d)
Reflects producers offering less of a good as its price increases and more of as its price falls.
29.
Toal Costs=
a)
Variable Costs- Fixed Costs
b)
Fixed Costs - Variable Costs
c)
Fixed Costs + Variable Costs
d)
Variable Costs Divided By Fixed Costs
30.
Toal Costs=
a)
Variable Costs- Fixed Costs
b)
Fixed Costs - Variable Costs
c)
Fixed Costs + Variable Costs
d)
Variable Costs Divided By Fixed Costs
31.
An Increase in Supply or a shift of the supply curve to the right occurs when:
a)
A rise in input costs happens
b)
If Government pays subsidies for a good.
c)
If producers expect the price to fall in the future.
d)
If government regulates a good.
32.
An Increase in Supply or a shift of the supply curve to the right occurs when:
a)
A rise in input costs happens
b)
If Government pays subsidies for a good.
c)
If producers expect the price to fall in the future.
d)
If government regulates a good.
33.
A decrease in supply or a shift of the supply curve to the left:
a)
If more suppliers enter the market place.
b)
A fall in the cost of an input occurs.
c)
If government ends regulation.
d)
If government places an excise tax on goods.
34.
A decrease in supply or a shift of the supply curve to the left:
a)
If more suppliers enter the market place.
b)
A fall in the cost of an input occurs.
c)
If government ends regulation.
d)
If government places an excise tax on goods.
35.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
36.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
37.
What is the Equilibrium Quantity?
a)
50
b)
60
c)
70
d)
80
38.
What is the Equilibrium Quantity?
a)
50
b)
60
c)
70
d)
80
39.
What Price would make an effective Price to set a Price Ceiling?
a)
340
b)
320
c)
280
40.
What Price would make an effective Price to set a Price Ceiling?
a)
340
b)
320
c)
280
41.
The graph illustrates a ...
a)
Demand Curve
b)
Supply Curve
c)
Elasticity Curve
d)
Price Ceiling
42.
The graph illustrates a ...
a)
Demand Curve
b)
Supply Curve
c)
Elasticity Curve
d)
Price Ceiling
43.
If the Price is $2, there will be...
a)
A surplus of 45
b)
A shortage of 85
c)
A shortage of 45
d)
A surplus of 85
44.
A change in quantity supplied is caused by:
a)
a change in technology
b)
a change in the cost of an input
c)
the price elasticity of supply
d)
a change in the price of the produced good
45.
A change in quantity supplied is caused by:
a)
a change in technology
b)
a change in the cost of an input
c)
the price elasticity of supply
d)
a change in the price of the produced good
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