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WorksheetsUnit 2 Review
Total questions: 20
Worksheet time: 20mins
Name
Class
Date
1.
Why does the government promote progress in technology?
a)
To make the economy stronger and more efficient
b)
To reduce the economy’s dependence on government
c)
To slow an economy down for a long period of time
d)
To increase unemployment by making workers unnecessary
2.
Why is legal equality important to the free enterprise system?
a)
Lawyers ensure good legal representation for businesses
b)
It reduces unnecessary competition in the marketplace
c)
to slow an economy down for a long period of time
d)
It allows everyone to compete in the marketplace
3.
The price of cranberry juice suddenly increases. As a result, Glenda begins drinking more grape juice, which is less expensive, but tastes just as good to her. In this case, Glenda’s elastic demand is due to
a)
Availability of substitutes
b)
Relative importance
c)
Necessities versus luxuries
d)
Change over time
4.
The city airport opens a new runway. Neighbors complain that the noise of the airplanes is too loud. What is this noise an example of?
a)
Positive externality
b)
Free rider problem
c)
Negative externality
d)
Market failure
5.
If you create a demand schedule for an individual and for a market for the same product, what will remain the same in both schedules?
a)
Prices of the good or service
b)
Demand curve
c)
Percent difference at each price
d)
Total revenue
6.
Jeff and Margaret qualify for Section 8 housing. This federal program provides housing at a reduced cost. What kind of benefit are Jeff and Margaret receiving?
a)
Cash transfer
b)
In-kind benefit
c)
Social Security benefit
d)
Faith-based initiative
7.
Your public radio station has a campaign to raise funding for the year. You do not contribute, but you still listen to the channel. What is this situation called?
a)
In-kind benefit
b)
Market failure
c)
Negative externality
d)
Free rider problem
8.
What does technology generally do to production?
a)
It lowers cost and decreases supply
b)
It lowers cost and increases supply
c)
It increases cost and decreases supply
d)
It has very little effect on production
9.
A comic book store holds a one-day half-price sale on comics. Consumers react to the sale by buying more comics than on a typical day. This action is an example of
a)
Elasticity of demand
b)
The substitution effect
c)
The law of demand
d)
Total Revenue
10.
Variable costs would include everything EXCEPT
a)
rent
b)
labor
c)
raw materials
d)
utilities
11.
the desire to own something and the ability to pay for it
a)
supply
b)
demand
c)
income effect
d)
substitute
12.
goods that are used in place of one another
a)
complements
b)
normal goods
c)
substitutes
d)
profit motive
13.
producers offer more of a good as its price increases and less as its price falls
a)
law of demand
b)
supply
c)
demand
d)
law of supply
14.
the principle that anyone can compete in the marketplace
a)
open opportunity
b)
competition
c)
profit motive
d)
economic freedom
15.
the change in output from hiring one additional unit of labor
a)
marginal product of labor
b)
marginal revenue
c)
variable cost
d)
fixed cost
16.
a table that lists the quantity of a good a person will buy at various prices in a market
a)
law of demand
b)
supply schedule
c)
demand schedule
d)
law of supply
17.
consumers will buy more of a good when its price is lower and less when its price is higher
a)
law of demand
b)
supply
c)
demand
d)
law of supply
18.
the right of a government to take private property for public use
a)
legal equality
b)
taxation
c)
eminent domain
d)
property rights
19.
a chart that lists how much of a good a supplier will offer at various prices
a)
law of demand
b)
supply schedule
c)
demand schedule
d)
law of supply
20.
the incentive that drives individuals and business owners
a)
open opportunity
b)
competition
c)
profit motive
d)
economic freedom
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