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WorksheetsEconomic Basics
Total questions: 51
Worksheet time: 1hrs 23mins
Name
Class
Date
1.
Which of these is an example of an inferior good?
a)
Bike
b)
Uber
c)
Taxi
d)
Public Bus
2.
Which of the following would not cause as shift in demand?
a)
Decrease in income
b)
Lower supply
c)
Change in tastes
d)
Increase in price
3.
What is not difficulty in finding equilibrium?
a)
It changes with supply and demand
b)
Markets are unpredictable
c)
Equilibrium is static
4.
What is not an example of a substitute?
a)
Train freight and truck freight
b)
Peanut butter and jelly
c)
Hershey's and Nestle chocolate
d)
Microsoft Word and Google Docs
5.
Which of the following would cause a change in supply?
a)
A change in market price
b)
A change in technology available
c)
A change in the number of sellers
d)
All of the above
6.
What is the difference between a demand schedule and a demand curve?
a)
A schedule is a graph and a curve is a table
b)
A schedule is written on paper and a curve is a 3d model
c)
A schedule is a table and a curve is a graph
d)
All of the above
7.
What is a complement?
a)
When the price of one good increases, the demand for the other decreases
b)
When the price of one good increases, the price of the other increases
c)
When the demand of one good increases, the price of the other decreases
d)
When the supply of one good increases, the demand of that good increases
8.
What is an example of a competitive market?
a)
Walmart
b)
Mid-American Energy
c)
Cell service providers
d)
A small town cable provider
9.
What is market demand?
a)
The dividend of all individual demand
b)
The product of all individual demand
c)
The quotient of all individual demand
d)
The sum of all individual demand
10.
An economist would probably state that in a market economy, prices are generally determined by the interaction between
a)
buyers and sellers
b)
wholesalers and retailers
c)
producers and labor unions
d)
consumers and government officials
11.
In economics, the term demand refers to the quantity of a good that people
a)
will buy at one particular price over a long time period
b)
would like to consume on a given date
c)
will buy at many different prices at a particular time
d)
would like to have available during a given time period
12.
Which of the following is likely to increase the demand for peanut butter?
a)
Fewer children in the population
b)
News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
c)
A big increase in the price of jelly.
d)
A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
13.
Summer is upon us, and people begin purchasing bathing suits in large numbers. What causes this change?
a)
Change in income
b)
Prices or availability of substitutes
c)
Change in the weather or season
d)
Change in the number of buyers
14.
Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store become slow. What causes this change?
a)
Prices or availability of substitutes
b)
Prices or availability of complementary goods
c)
Change in the weather or season
d)
Change in the number of buyers
15.
iTunes increases the price of all of its digital downloadable music to $6 per song. What causes this change?
a)
Prices or availability of substitutes
b)
Prices or availability of complementary goods
c)
Change in the weather or season
d)
Change in the number of buyers
16.
Which one of the following scenarios would NOT result in a demand change for compact discs?
a)
Famous music artists put together a save-the-children CD, with proceeds going towards education
b)
CDs go on sale in an end-of-summer blowout sale.
c)
Auto manufacturers no longer put CD players into cars as a standard feature.
d)
U.S. Government taxes rise for the fourth straight year.
17.
Supply is best defined as the measure of how much producers are willing and able to sell
a)
above the market-clearing price
b)
at any one price at a particular time
c)
at different prices at a particular time
d)
according to their resources and profit motives
18.
Product X is in high demand. The price of Product X rises by 15%. The most likely result of theseevents would be an increase in
a)
supplier output
b)
natural resources
c)
consumer demand
d)
government intervention
19.
Product X is in high demand. The price of Product X rises by 15%. The most likely result of theseevents would be an increase in
a)
supplier output
b)
natural resources
c)
consumer demand
d)
government intervention
20.
An automobile company based out of China starts selling its cars in the United States. Why would the supply change?
a)
Change in cost of production
b)
Changes in number of producers
c)
Changes in expectations
21.
New technology advances the rate at which furniture can be assembled. Why does this change the supply?
a)
Change in cost of production
b)
Changes in number of producers
c)
Changes in expectations
22.
The cost of flour increases due to a drought in the Midwest. It now costs more to create baked goods. Why does this change the supply?
a)
Change in cost of production
b)
Changes in number of producers
c)
Changes in expectations
23.
If bad weather destroys much of the wheat crop, then
a)
the price effect will cause growers to sell less wheat at lower prices.
b)
growers will offer less wheat at each and every price.
c)
no wheat products will be produced that year.
d)
none of the above.
24.
The market equilibrium price is the price at which
a)
surpluses depress the number of goods supplied
b)
shortages and surpluses will have no effect on the market
c)
the government will not intervene in the market
d)
the quantity demanded is the same as the quantity supplied
25.
In economics, a shortage of a product occurs when
a)
the product's price falls below its market-clearing level
b)
the product's market-clearing level reduces overall demand
c)
the people who buy the product consume more than they need
d)
the businesses producing the product become less efficient
26.
Which of the following does NOT explain why market-clearing prices are important in a free enterprise economy?
a)
They help to ration available goods and services.
b)
Equilibrium prices provide incentives for people to produce goods and services.
c)
They provide information about producer costs and consumer wants.
d)
They help to create competition to drive prices upwards in order to create necessary surpluses.
27.
a)
$0.80
b)
$0.50
c)
$0.78
d)
$0,68
28.
a)
$1.62
b)
$0.62
c)
$2.62
d)
$2.82
29.
a)
$5.23
b)
$5.59
c)
$5.54
d)
$5.89
30.
a)
$1.68
b)
$1.78
c)
$1.88
d)
$1.76
31.
a)
$1.85
b)
$1.80
c)
$2.35
d)
$1.60
32.
a)
$0.41
b)
$0.31
c)
$0.26
d)
$0.42
33.
a)
$0.92
b)
$1.27
c)
$0.67
d)
$0.77
34.
a)
$1.07
b)
$1.70
c)
$4.07
d)
$4.17
35.
a)
$0.87
b)
$0.93
c)
$0.82
d)
$1.02
36.
a)
$1.50
b)
$1.20
c)
$2.50
d)
$2.20
37.
a)
$0.37
b)
$0.62
c)
$1.57
d)
$0.67
38.
a)
$2.62
b)
$2.82
c)
$2.52
d)
$2.61
39.
a)
$0.88
b)
$0.85
c)
$0.89
d)
$0.87
40.
What determines a country's wealth?
a)
natural resources
b)
all its tangible and intangible resources
c)
its total of all tangible products
d)
the amount of its goods and services
41.
When people wait in line on Black Friday to get a 70" TV, this is an example of
a)
scarcity
b)
consumerism
c)
product marketing
d)
consumer responsibility
42.
A diamond is worth more than water. This illustrates what concept of economics?
a)
consumerism
b)
paradox of value
c)
specialization
d)
human capital
43.
Reliance on others to produce goods and services is
a)
consumerism
b)
scarcity
c)
economic interdependence
d)
wealth
44.
Choosing to make cars instead of trucks results in
a)
opportunity cost
b)
increased wealth
c)
expanding the production possibilities curve
d)
TINSTAAFL rating upgrade
45.
What is the fundamental problem of every society?
a)
labor costs
b)
scarcity
c)
economic interdependence
d)
market fluctuation
46.
Deciding whether or not a purchase is worth the cost could best be done with a
a)
production possibilities curve
b)
factor market evaluation
c)
online search
d)
cost-benefit analysis
47.
Using resources more efficiently increases
a)
productivity
b)
capital
c)
income
d)
investment
48.
Food is an example of a
a)
durable good
b)
non-durable good
c)
want
d)
resource
49.
A nation whose total output increases is experiencing
a)
decreased GDP
b)
expansion of the possibilities curve
c)
more consumerism
d)
economic growth
50.
Concern about the rights of people who buy things is called
a)
consumer responsibilities
b)
consumerism
c)
interdependence
d)
factor market
51.
When consumers buy goods, they participate in the
a)
factor market
b)
product market
c)
cost benefit exercise
d)
investment market
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