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WorksheetsAP Micro Review I
Total questions: 20
Worksheet time: 12mins
Name
Class
Date
1.
If the cost of producing a good increases, then which of the following will happen in the market for that product?
a)
supply increase
b)
supply decrease
c)
demand increase
d)
demand decrease
2.
Juice and tea are substitutes. If the price of tea increases, what will happen in the market for juice?
a)
supply increase
b)
supply decrease
c)
demand increase
d)
demand decrease
3.
What is the opportunity cost of moving from point B to C on the curve?
a)
30 tons of wheat
b)
30 tons of steel
c)
5 tons of wheat
d)
5 tons of steel
4.
Ford can produce 200 Mustangs or 400 Escapes in their factory. What is the opportunity cost of making each Mustang?
a)
1/2 Escape
b)
1/2 Mustang
c)
2 Escapes
d)
2 Mustangs
5.
Apple can make 1,000 iPhones or 600 iPads in their factory each day. What is the opportunity cost of making each iPhone?
a)
3/5 iPad
b)
3/5 iPhone
c)
5/3 iPads
d)
5/3 iPhones
6.
Comparative advantage is determined by what?
a)
output
b)
benefit
c)
opportunity cost
d)
total cost
7.
Plants and fertilizer are complements. If the price of fertilizer increases, what will happen in the market for plants?
a)
supply increase
b)
supply decrease
c)
demand increase
d)
demand decrease
8.
Housing is a normal good. If average salary increases, what can we expect to happen in the housing market?
a)
rightward shift in supply
b)
leftward shift in supply
c)
rightward shift in demand
d)
leftward shift in demand
9.
Corn Flakes are an inferior good. If minimum wage increases, what will happen in the market for Corn Flakes?
a)
rightward shift in supply
b)
leftward shift in supply
c)
rightward shift in demand
d)
leftward shift in demand
10.
If the demand for Wendy's increases when the price of Starbucks decreases, then what type of goods are Wendy's and Starbucks?
a)
normal
b)
inferior
c)
substitutes
d)
complements
11.
If the income elasticity of demand for iced tea is -1.4, then what does that make iced tea?
a)
normal
b)
inferior
c)
substitute
d)
complement
12.
If the cross-price elasticity of apples and oranges is -0.6, then what does that make these two goods?
a)
normal
b)
inferior
c)
substitutes
d)
complements
13.
If the elasticity of demand for doughnuts is 1.6, then what does that make demand for doughnuts?
a)
perfectly inelastic
b)
relatively inelastic
c)
relatively elastic
d)
perfectly elastic
14.
If Craig buys one pack of cigarettes every single day, no matter the price, what does this make Craig's demand?
a)
perfectly inelastic
b)
relatively inelastic
c)
unit elastic
d)
perfectly elastic
15.
As the price of paper increased by 20%, consumers purchased 20% less paper. What does this make the demand for paper?
a)
perfectly inelastic
b)
unit elastic
c)
perfectly elastic
d)
relatively inelastic
16.
The demand for eggs decreases by 20% when the price of eggs increases by 10%. What is the elasticity of demand for eggs?
a)
2.0
b)
0.5
c)
3.0
d)
0.2
17.
When the price of ham increases by 10%, the demand for ham decreases by 5%, and the demand for turkey increases by 15%. What is the cross-price elasticity between ham and turkey?
a)
2.0
b)
-0.5
c)
-2.0
d)
1.5
18.
If total utility increases from 150 to 210 utils after consuming a 4th candy bar, then what's the marginal utility per dollar of the 4th candy bar if the price is $2?
a)
60 utils per dollar
b)
110 utils per dollar
c)
30 utils per dollar
d)
75 utils per dollar
19.
Which of the following is a condition for maximizing utility?
a)
marginal utility per dollar is maximized
b)
entire budget is spent
c)
equal quantity of both products
d)
marginal utility is maximized
20.
If consumers of a good are relatively inelastic in their demand, and the producer of the good increases price, will the producer's total revenue increase, decrease, or stay the same?
a)
increase
b)
decrease
c)
stay the same
d)
IDK
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