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WorksheetsYear 12 Economics AOS 2 [2] Economic activity
Total questions: 20
Worksheet time: 7mins
Name
Class
Date
1.
GDP per capita is
a)
The population divided by total GDP.
b)
Investment as a percentage of GDP.
c)
Total GDP divided by total population.
d)
The same as GDP per worker.
2.
High levels of GDP per capita indicate...
a)
Higher levels of happiness
b)
Higher standard of living
c)
Equal levels of wealth
d)
Self-sufficient communities
3.
What are inferior goods?
a)
goods that are not well produced
b)
goods no one wants to buy
c)
goods for which the demand rises when income falls
d)
goods for which the demand rises when income rises
4.
Millions of people see a famous sports star drinking apple juice on television. The fans think apple juice helps make the athlete strong. What will happen to the price of apple juice?
a)
The price will go up.
b)
The price will go down.
5.
What are the factors of production?
a)
capital, entrepreneurship, labor, price
b)
labor, natural, entrepreneurship, resources
c)
human, labor, capital, entrepreneurship
d)
natural, human, capital, entrepreneurship
6.
When the price of a product goes up, what will happen to supply and demand?
a)
a. Supply will decrease, and demand will increase.
b)
a. Supply will increase, and demand will decrease.
c)
a. Supply will increase, and demand will stay the same.
d)
a. Supply will stay the same, and demand will increase.
7.
Oreo cookies are now extremely expensive to purchase. Instead of buying Oreo cookies, I now want to buy Chips Ahoy. What determinant of demand does this likely fall under?
a)
Change in Price of Complementary Good
b)
Change in Price of Substitute Good
c)
Change in Consumer Price Expectations
d)
Change in Number of Consumers in the Market
8.
Jennifer Lopez is seen wearing a new short and sleek dress. People now want this dress. Which demand determinant is this most likely to fall under?
a)
Change in Consumer Income
b)
Change in Consumer Tastes
c)
Change in Price of Substitute Good
d)
Change in Consumer Price Expectations
9.
The government is giving every individual 18 and above an extra $1,000.00 this year. What determinant of demand does this likely fall under?
a)
Change in Consumer Tastes
b)
Change in Consumer Price Expectations
c)
Change in Number of Consumers in the Market
d)
Change in Consumer Income
10.
I know that the iPhone 8 is coming out next year but really need a phone badly. I'm thinking about buying an iPhone 7 when the new iPhone comes to the market because it will be much cheaper than today's price. What determinant of demand does this suggest?
a)
Change in Price of Complementary Good
b)
Change in Consumer Price Expectations
c)
Change in Number of Consumers in the Market
d)
Change in Consumer Income
11.
McDonald's is having a special on their Big Mac purchases this week. Every Big Mac is $3 cheaper! When burger prices go down, this means you can buy more fries and a drink. What demand factor does this relate to?
a)
Change in Consumer Tastes
b)
Change in Price of Substitute Good
c)
Change in Price of Complementary Good
d)
Change in Number of Consumers in the Market
12.
Labor costs are rising through the roof! Minimum wages are now at $25 an hour. This means even the basic item will need to cost more to keep up with rising costs. What determinant of supply does this most relate to?
a)
Change in Technology
b)
Change in Number of Sellers in the Market
c)
Change in Cost of Factors of Production
13.
A brand new machine cooks, cleans, and never messes up a fast food order. This means we can sell more fast food than ever before, leading to producers cutting cost of fast food. Which supply factor does this most likely relate to?
a)
Change in Technology
b)
Change in Profit Opportunities Producing other Products
c)
Change in Producers' Price Expectations
14.
The sellers of Twinkies also sell healthy foods. With all the health regulations we have now, the sellers of Twinkies want to sell more healthy foods. The supply of Twinkies will decrease. What supply factor does this best relate to?
a)
Change in Technology
b)
Change in Number of Sellers in the Market
c)
Change in Profit Opportunities Producing other Products
15.
What is the most likely cause of an increase in demand?
a)
Lower costs
b)
Price changes
c)
Higher salaries
16.
What is the most likely cause of an increase in supply?
a)
Lower costs
b)
Higher Salaries
c)
Price changes
17.
What does an interest rate cut usually mean?
a)
Higher costs
b)
Higher sales
c)
Higher taxes
18.
With respect to supply, "costs" refer to:
a)
How much consumers pay to purchase products
b)
The amount producers spend to produce a product
c)
All of the bills everyone in an economy has to pay
d)
Hidden charges people don't expect when they sign agreements
19.
A shift in the supply curve to the RIGHT indicates
a)
An overall increase in the amount of a product created for a market
b)
An overall decrease in the amount of a product created for a market
c)
A politically conservative government has been elected
d)
Economists made correct projections about what would happen
20.
Advances in robotics, microchips and computerization have:
a)
Shifted the supply curve of most industries to the right
b)
Created a demand for more nerds in society
c)
Made manufacturing more boring for workers
d)
Shifted the supply curve of most industries to the left
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