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WorksheetsMicroeconomics Unit Test Review 3
Total questions: 25
Worksheet time: 24mins
Name
Class
Date
1.
Look at the picture. What should replace Y?
a)
Consumers
b)
Firms
c)
Factors
d)
Revenue
2.
IN the picture, what should replace Z?
a)
Factor Market
b)
Firms
c)
Product Market
d)
Consumers
3.
In the picture, what should replace V?
a)
Income
b)
Payments
c)
Products
d)
Firms
4.
In the picture, what should replace W?
a)
Factor Market
b)
Product Market
c)
Consumers
d)
Firms
5.
The circular flow is made up of a continuous interaction of which three groups?
a)
Workers, government and transportation
b)
Homeowners, business owners, car dealers
c)
Factories, farmers, and workers
d)
Households, government, and businesses
6.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
7.
Which arrows on this diagram would represent the transaction between Joe who rents his office to Homework Inc., a company that provides tutoring services?
a)
2,3
b)
4,7
c)
1,2
d)
5,6
8.
The arrows 1 to 2 in this diagram represent which aspect of the economy?
a)
goods and services flow
b)
money flow
c)
taxes
d)
factors of production
9.
The circular flow model of a market economy shows
a)
how profits are made
b)
what inputs are required for what outputs
c)
how many firms can support the needs of how many households
d)
the interactions between households and firms in the free market
10.
Which statement is true about the circular flow diagram?
a)
A Households are demanders in the product market and suppliers in the factor market
b)
A Business are demanders in the product market and suppliers in the factor market.
c)
A Households are demanders in the factor market and suppliers in the product market.
d)
A Businesses and households are not components of the circular flow diagram.
11.
People are willing to accept money as payment. This means it is a
a)
store of value
b)
medium of exchange
c)
unit of account
d)
an evil tool of capitalism
12.
The following is a factor that will not cause the demand curve to shift:
a)
Advertising
b)
Population
c)
Price
d)
Consumer expectations
13.
The law of demand has a _____ relationship
a)
Inverse
b)
Direct
14.
The law of supply has a ______ relationship
a)
Inverse
b)
Direct
15.
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
16.
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
17.
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
18.
Takis have been taking the market by storm! Everyone and their mom wants in on selling this delicious treats! Companies that never thought about selling Takis-like products are now selling their version of a hot chip. What supply factor is this?
a)
Change in Technology
b)
Government Action
c)
Change in Number of Sellers in the Market
19.
A decrease in the price of ketchup could affect the demand for french fries.
a)
True
b)
False
20.
All markets move toward...
a)
extinction
b)
surplus
c)
equilibrium
d)
profits
21.
What does this graph show?
a)
Shortage
b)
Surplus
c)
Supply Table
d)
Equilibrium
22.
Which of these will likely create a shortage?
a)
A. A market price
b)
B. A price ceiling
23.
If the government set the price at $300, what would be the result?
a)
Surplus of 4,000
b)
Surplus of 2,000
c)
Shortage of 4,000
d)
Shortage of 2,000
24.
The minimum wage is a type of ____________
a)
price floor
b)
price ceiling
c)
equilibrium price
d)
marginal price
25.
Cost of steel increases. What happens to market for cars?
a)
Supply shifts left
b)
Supply shifts right
c)
No change in supply
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