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Economics #3

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

These are examples of what?

a)

Complements

b)

Substitutes

c)

Inferior goods

d)

Transfer goods

2.

An increase in consumer income will cause what for an inferior good?

a)

The demand curve will shift right

b)

The demand curve will shift left

c)

The supply curve will shift right

d)

The supply curve will shift left

3.

Which refers to the ability, desire, and willingness to buy a good or service?

a)

utility

b)

demand

c)

price

d)

supply

4.

If the price of printers goes down, what happens to the market for for ink cartridges?

a)

demand decreases

b)

demand increases

c)

quantity demanded decreases

d)

quantity demanded increases

5.

What is the Law of Demand?

a)

consumers will buy more of something when price goes up

b)

consumers will buy less of something when price goes down

c)

consumers will not refuse to buy something when price goes down

d)

consumers will buy more of something when price goes down

6.

If the price of a good or service increase what will happen to the demand for it?

a)

Increase

b)

No change

c)

Decrease

7.

What does this graph represent?

a)

Supply

b)

Equilibrium

c)

Demand

8.

What does Microeconomics study?

a)

Individual consumers

b)

Households

c)

Large corporations

d)

All apply

9.

Normal goods are those goods for which the demand rises as consumer income rises.

a)

True

b)

False

10.

What is not an example of an inferior good?

a)

instant noodles

b)

cheap cars

c)

discount stores

d)

gym memberships

11.

If the price of a good or service decreases what will happen to the demand for it?

a)

Increase

b)

Decrease

c)

No change

12.

The price of elasticity of demand measures how much of what?

a)

the demand responds to a change in price

b)

quantity demanded responds to a change in demand

c)

quantity demanded responds to a change in price

d)

quantity demanded does not take measure of anything

13.

The graph represents when demand is what?

a)

Elastic

b)

Inelastic

c)

Perfectly inelastic

d)

Perfectly elastic

14.

This graph represents what?

a)

Elastic demand

b)

Inelastic demand

c)

Perfectly elastic demand

d)

Perfectly inelastic demand

15.

What is a factor that will cause the demand curve to shift?

a)

Tastes

b)

Income

c)

Expectations

d)

All apply

16.

Total Revenue is calculated how?

a)

Price x demand = Total Revenue

b)

Price x new price = Total Revenue

c)

Price - quantity demanded = Total Revenue

d)

Price x quantity demanded = Total Revenue

17.

Which is an elastic good?

a)

Salt

b)

New cars

c)

Insulin

d)

Gasoline purchased one day after a 20% price increase

18.

Fixed costs + variable cost = ?

a)

Total revenue

b)

Profit

c)

Total cost

d)

Net profit

19.

Which are complements?

a)

Xbox and PS4

b)

Ford and Chevy

c)

Pancakes and syrup

d)

IPhone and Galaxy

20.

What does this graph represent?

a)

Elastic demand

b)

Inelastic demand

c)

Perfectly elastic demand

d)

Perfectly inelastic demand

21.

What is the demand for a ball point pen?

a)

Elastic

b)

Inelastic

22.

What is the demand for sugar?

a)

Elastic

b)

Inelastic

23.

What happens to the current demand if the price of pens (a pencil substitute) increases?

a)

Increases

b)

Decreases

c)

No change

24.

What happens to the current demand if pencil consumers experience and increase in income?

a)

Increases

b)

Decreases

c)

No change

25.

A movie theater owner finds that her total revenue stays when she raises the price of tickets.

a)

Elastic

b)

Inelastic

c)

Unit-Elastic