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WorksheetsPreThanksgiving Econ. Review
Total questions: 18
Worksheet time: 9mins
Name
Class
Date
1.
Under perfection competition which of the following are true?
a)
products are similar but not identical
b)
there are restrictions from entering/exiting the market
c)
all sellers offer his/her products at the prevailing market price
d)
a small group of sellers dominate the market
2.
In business profits are maximized when
a)
Marginal revenue equals marginal cost
b)
marginal revenue is greater than marginal cost
c)
marginal revenue is less than marginal cost
d)
the business is in stage III of production
3.
Total cost is the sum of the
a)
all variable costs
b)
fixed and variable costs
c)
fixed and marginal cost
d)
all fixed cost
4.
The supply of a product normally decreases if
a)
the cost of inputs goes down
b)
more producers enter the market
c)
the price of the product increases
d)
taxes on the product increase
5.
Consumers will replace a costly item with a less costly item is an example of
a)
complements
b)
demand inelasticity
c)
substitution effect
d)
income effect
6.
The situation where non-necessities have a much higher value than necessity items is known as
a)
opportunity cost
b)
trade-offs
c)
paradox of value
d)
economic interdependence
7.
Manufactured goods needed to produce other goods and services are called
a)
GDP
b)
Consumer goods
c)
Capital goods
d)
non-durable goods
8.
The dollar value of all final goods and services and the most comprehensive measure of a country's total production output is
a)
standard of living
b)
financial capital
c)
cost benefit analysis
d)
Gross Domestic Product
9.
This is a popular model that economists use to show the concept of opportunity cost
a)
the production possibilities frontier
b)
paradox of value
c)
supply and demand curves
d)
aggregate demand and aggregate supply graphs
10.
A limited partnership differs from a general partnership by which of the following
a)
all partners equally share liability of the business
b)
the inactive partner has only limited liability and the active partner has unlimited liability for the business
c)
the life of the business is tied to the life of the partners
d)
the business must pay special business taxes
11.
What agency regulates the sale of stocks
a)
labor unions
b)
Securities and Exchange Commission
c)
Stock brokers
d)
Chamber of commerce
12.
A merger of corporations involved in different steps of manufacturing or marketing is known as a
a)
multinational merger
b)
vertical merger
c)
horizontial merger
d)
conglomerate
13.
This organization is responsible for the welfare of its members and the growth of its community
a)
Better Business Bureau
b)
Chamber of commerce
c)
Non-profits
d)
Cooperatives
14.
Which business organization pays special taxes, its owners have limited liability, and the owners are not always active in the day to day operations of the business
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Non-Profits
15.
If the price of milk increases and this causes a decrease in the demand for cereal then the two products must be
a)
compliments
b)
substitutes
c)
non related
d)
elastic in demand
16.
If the price of a product doubles and the quantity demanded for the product does not change very much at all, which of the following must be true?
a)
the product has elastic demand
b)
the product has inelastic demand
c)
the product has elastic supply
d)
the product has inelastic supply
17.
The fundamental economic problem is
a)
crime
b)
hunger
c)
scarcity
d)
opportunity cost
18.
The four factors of production include
a)
land
b)
labor
c)
capital
d)
all the above
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