wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

ECONOMIC TEST

Total questions: 96

Worksheet time: 59mins

Name
Class
Date
1.
The law of demand states that if the price of CD’s rise, consumers will
a)
Buy more CDs
b)
Buy fewer CDs
c)
Quantity demanded will not change
2.
The law of supply states that if the price of CD’s rise, suppliers will
a)
Supply more CDs
b)
Supply fewer CDs
c)
Quantity supplied will not change
3.
Which of the following will cause an increase in demand for snowboards?
a)
More costly production methods 
b)
A decrease in the price of lift tickets at resorts in Colorado 
c)
A decrease in consumer income   
d)
A decrease in the population 
4.
Costs of producing gasoline has increased due to rising energy costs. What happens to the market for gasoline?
a)
Supply for gasoline will decrease 
b)
Supply for gasoline will increase
c)
Supply for gasoline will stay the same
5.

What will happen to the price of tomatoes if more farmers decide to start growing tomatoes?

a)

The price will increase

b)

The price will decrease

6.

What will happen to the price of wheat if Farmers have to start paying more for fertilizer?

a)

The price will increase

b)

The price will decrease

7.

Demand means

a)

the amount of a good or service that consumers are willing to buy.

b)

is the amount of a good or service produced.

c)

is the price that is demanded by consumers.

d)

None of the above.

8.

What does the law of demand say

a)

consumers will buy less of something when price goes down.

b)

consumers will buy more of something when price increases.

c)

consumers will buy more of something when prices go down.

d)

None of the above.

9.
Market demand curves are obtained by
a)
determining the price each consumer is willing to pay for the good & summing those prices across all consumers
b)
observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph
c)
summing the quantities every consumer is willing to buy at each different price
d)
observing the behavior of an individual consumer in a market
10.

If Mary used to buy 10 units at $4 each and now buys 15 units when the price is $3, her

a)

quantity demanded has increased

b)

quantity demanded has decreased

c)

supply has increased

d)

supply has decreased

11.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
12.
If a price is above equilibrium price, it creates a...
a)
shortage
b)
surplus
c)
market price
d)
demand
13.
When quantity supplied and quantity demanded is equal
a)
surplus
b)
shortage
c)
equilibrium
d)
law of demand
14.

Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?

a)

The demand will probably go up

b)

The demand will probably go down

15.

A Market Economy is based on?

a)

Goods and Services

b)

Goods and Products

c)

Supply and Demand

d)

Service

16.

This image best represents:

a)

An increase in demand

b)

A decrease in demand

c)

A decrease in quantity demanded

d)

An increase in quantity demanded

17.

This image best represents a:

a)

demand schedule

b)

demand curve

c)

supply schedule

d)

supply curve

18.

According to the law of demand, the relationship between "price" and "quantity demanded" is:

a)

Inverse

b)

Direct

c)

Not correlated

19.

The "quantity demanded by all consumers in a market" is known as the:

a)

Individual demand

b)

Market demand

c)

Market supply

d)

Supply and demand

20.
Demand is unit elastic if it is less than 1.0
a)
True
b)
False
21.
Suppose that elasticity of demand of socks is 0.7.  If the price of socks is reduced by 10%, how will sales be effected?
a)
sales will grow by more than 10%
b)
Sales will grow by 10%
c)
Sales will grow by less than 10%
d)
Sales will decrease by 10%
22.
The formula for calculating elasticity of demand is:
a)
The % change in price over the % change in quantity demanded
b)
The % change in quantity demanded over the % change in price
c)
The change in price over the change in quantity demaned
d)
The change in quantity demanded over the change in price
23.
The elasticity of demand for tissues is 0.66. This means the demand for tissues is
a)
elastic
b)
unit elastic
c)
inelastic
d)
really expensive
24.

Elasticity refers to

a)

how producers of goods and services react to price changes

b)

how consumers of goods and services react to price changes

c)

how far a supply of scarce goods can be stretched

d)

how often the price of a good or service changes when quantity demanded changes

25.

Wheat has seen a decrease in demand of 5%, while the price has increased 7%

a)

1.4 inelastic

b)

1.4 elastic

c)

.71 inelastic

d)

.71 elastic

26.
Demand is almost always more elastic at higher prices and less elastic at lower prices.
a)
True
b)
False
27.
The quantity of peanuts supplied increased from 40 tons/week to 60 tons/week when the price of peanuts increased from $4/ton to $5/ton. The price elasticity of supply for peanuts over this price range is:
a)
Elastic
b)
Inelastic
c)
Unit Elastic
d)
Perfectly Inelastic
28.
If a 10 percent increase in the price of a good leads to a 25 percent decrease in the quantity demanded of a good, demand is:
a)
Relatively inelastic
b)
Relatively elastic
c)
Perfectly elastic
d)
Perfectly inelastic
29.
For an inferior good, an increase in consumer income will cause:
a)
The demand curve to shift left
b)
The demand curve to shift right
c)
The supply curve to shift left
d)
The supply curve to shift right
30.
A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-Cola is:
a)
50
b)
0.20
c)
10
d)
5
31.
A 10 percent decrease in income decreases the quantity demanded of scented candles by 3 percent. The income elasticity of demand for scented candles is:
a)
0.3
b)
-0.3
c)
3
d)
-3.3
32.

Define Income Elasticity of Demand

a)

YED measures the degree of responsiveness of quantity demanded for a good to a change in consumer's income, ceteris paribus

b)

YED measures the degree of responsiveness of demand for a good to a change in consumer's income, ceteris paribus

c)

YED measures the degree of responsiveness of consumer's income to a change in quantity demanded for a good, ceteris paribus

d)

YED measures the degree of responsiveness of consumer's income to a change in demand for a good, ceteris paribus

33.

If the income elasticity of market demand is negative, most consumers view the good as:

a)

a luxury good

b)

having many imperfect substitutes.

c)

an inferior good.

d)

a normal good.

34.

Which one is the correct formula for Income Elasticity of demand?

a)

Percentage change in income / Percentage change in quantity demand for a good

b)

Percentage change in quantity demand for a good / Percentage change in income

c)

Percentage change in supplied for a good / Percentage change in income

d)

Percentage change in quantity demand for a good / Percentage change in its price

35.

YED = 0 is referring to

a)

Normal Goods

b)

Inferior Goods

c)

Luxury Goods

d)

Necessity Goods

36.

What do both elasticity of demand and elasticity of supply measure

a)

responsiveness to price

b)

responsiveness to quantity

c)

desires to consumers

d)

desires of producers

37.

If the firm have more spare capacity, then it will be possible for the firm to increase supply. This means supply is

a)

Elastic

b)

Inelastic

c)

Unitary elasticity

38.

If there are more firms producing more luxury items then supply of luxury items will increase. In such case, if there is any increase in price, the firms can supply more to make use of this rise in price.

a)

True

b)

False

39.

Supply is more price elastic if more time is available as the firms can adjust the supply and increase the supply when price are increasing.

a)

True

b)

False

40.

When the marginal product is negative, the total product is ______________.

a)

decreasing

b)

positive

c)

negative

d)

maximum

41.

The following table shows output quantities at the several of labour. At the level of 3rd labours, average production is _________units.

a)

10.4

b)

23.5

c)

25.3

d)

28.3

42.

The law of decreasing returns begins when the marginal production curve____________.

a)

reaches a maximum point

b)

rises

c)

falls

d)

intersects the X axis

43.

Which of the following costs will zero if a firm decides to produce no output in the short run?

a)

Its total cost.

b)

Its fixed cost.

c)

Its average cost.

d)

Its variable cost.

44.

Which of the following short run cost continues to decrease as output increases?

a)

Average variable cost.

b)

Average fixed cost.

c)

Marginal cost.

d)

Average cost

45.

The marginal product curve (MP) and the average product curve (AP) intersect ______________.

a)

at the maximum point of the marginal product curves.

b)

where the total product is at its maximum.

c)

where the marginal product equals zero.

d)

at the maximum point of the average product curves.

46.

The vertical distance between the firm’s average cost and average variable cost curves represents ___________________.

a)

average fixed cost.

b)

marginal cost.

c)

total cost.

d)

variable cost.

47.

A firm will experience lower long run average cost when its production increases. This is because __________________.

a)

Fixed factors are utilized efficiently.

b)

The firm can prevent other firms from entering the market.

c)

The firm enjoys the benefits of economics of scale.

d)

The firm receives financial assistance from the government.

48.

“When one unit of variable input is added to fixed input, it will decrease the production”. This situation can be described as ____________________.

a)

law of marginal return.

b)

law of negative marginal return.

c)

law of increasing marginal return.

d)

law of decreasing marginal return.

49.

An increase in total production due to an increase of one unit of variable input is known as _____________________.

a)

marginal cost

b)

average cost

c)

marginal production

d)

average production.

50.

Which of the following is most likely to be a variable cost?

a)

Property insurance premiums.

b)

Interest on bonded indebtedness.

c)

Rental payments on IBM requirement.

d)

Payment for raw materials purchased from Company Y.

51.

As output increases, average fixed costs _____________.

a)

fall

b)

increase

c)

remain constant

d)

initially fall, and then increase

52.

If a firm decides to produce no output in the short run, its cost will be ______________.

a)

zero.

b)

its fixed cost.

c)

its variable cost.

d)

its marginal cost.

53.

When the average cost is equal to marginal cost, ___________________.

a)

the average cost is at its maximum.

b)

the marginal cost is at its maximum.

c)

the average cost is at its minimum.

d)

the marginal cost is at its minimum.

54.

The average fixed cost curve is ________________.

a)

the AVC curve that shift downward.

b)

the AC curve that shift downward.

c)

the MC curve that shift downward.

d)

None of the above.

55.

In the short run, which of the following statements is correct?

a)

Marginal cost intersects average variable cost and average fixed costs at their minimum points.

b)

Average variable cost declines continuously as total output increases.

c)

If the inputs of all resources are increased by equal amounts, total output will expand by diminishing amount.

d)

Total costs always exceed variable cost.

56.

Which of the following curves is not U-shaped?

a)

AFC

b)

MC

c)

AVC

d)

AC

57.

Which of the following short run costs continue to decrease as output increases?

a)

Average variable cost.

b)

Marginal cost.

c)

Average fixed cost.

d)

Average cost.

58.

Which of the following is most likely to be a fixed cost?

a)

Shipping charger.

b)

Property insurance premium.

c)

Wages for unskilled labor.

d)

Expenditure for raw materials.

59.

Diseconomies of scale are reflected by the _____________________.

a)

decrease in the long run average rate.

b)

increase in the long run average cost.

c)

increases in short run marginal cost.

d)

decrease in long run price.

60.

Marginal product is __________________.

a)

the change in the total product due to the increase in employment of workers.

b)

the change in the total product due to the increase in employment of workers.

c)

total product divided by the number of worker employed.

d)

the change in total cost due to the increase in employment of worker.

61.

Economies and diseconomies of scale explain ___________________.

a)

the profit-maximization level of production.

b)

the distinction between fixed and variable costs.

c)

why the firm’s long run average cost curve is U-shaped.

d)

why the firm’s short run marginal cost curve cuts the short-run average variable cost curve at its minimum point.

62.

In the long run, ______________________.

a)

all costs are fixed costs.

b)

all costs are variable cost.

c)

at least one is a fixed cost.

d)

none of the above occurs

63.

The relationship between a series of short run average cost curves (SRAC) and the long-run average cost curve (LRAC) is such that )___________________.

a)

the SRAC and the LRAC do not meet at any point.

b)

all of the SRACs are tangent to the LRAC and lie above it.

c)

some of the SRACs are tangent to the LRAC and lie above it.

d)

some of the SRACs are tangent to the LRAC and lie below it.

64.

Fixed costs are costs related to____________________.

a)

Inputs

b)

Fixed inputs

c)

Variable input

d)

Fixed inputs and variable inputs

65.

Of the following, which is not avariable cost?

a)

Labour costs

b)

Raw material costs

c)

Transportation fuel costs

d)

Machinery purchase costs

66.

The difference between total cost and variable cost is___________________.

a)

fixed cost.

b)

average cost.

c)

marginal cost

d)

average fixed cost.

67.

The formula for total revenue is...

a)

Total revenue - total costs

b)

Total costs - total profits

c)

Price x quantity

d)

Average cost x price

68.

The formula for average revenue is...

a)

Total revenue/quantity

b)

Total costs - total profits

c)

Price x quantity

d)

Average cost x price

69.

The formula for marginal revenue is...

a)

TR − TCTR\ -\ TC

b)

TR÷QTR\div Q

c)

ΔTR÷ΔQ\Delta TR\div\Delta Q

d)

Average cos⁡t ÷ quantityAverage\ \cos t\ \div\ quantity

70.

When price is constant

a)

the total revenue curve is horizontal.

b)

the total revenue curve is downward sloping.

c)

the total revenue curve is upward sloping.

d)

the total revenue curve is a parabola.

71.
The additional income received from each increase of one unit in sales is called the  
a)
marginal benefit. 
b)
marginal profit. 
c)
marginal revenue.
d)
total revenue.  
72.
What is meant by the short run?
a)
at least one factor of production is fixed
b)
all factors of production are fixed
c)
land is fixed
d)
Less than a year
73.
........do not change with output, firms must pay these even if they shut down
a)
Fixed costs
b)
Variable costs
74.
Average fixed costs must fall continuously as output increases because total fixed costs are...
a)
being spread over a higher level of production.
b)
being spread over a smaller level of production.
c)
being spread over a larger number of workers
d)
being spread over a larger number of machines
75.
LRAC is the cost per unit of output feasible when all factors of production are variable
a)
True
b)
False
76.
In the LR all costs are variable and the scale of production can change (i.e. no fixed inputs)
a)
True
b)
False
77.
Amazon has 60% share the eBooks market, and uses this power to reduce prices. .
a)
Marketing economies of scale
b)
Technical economies of scale
c)
Managerial Economies of Scale
d)
Financial economies of scale
78.
Which is NOT a characteristic of a monopoly?
a)
Seller sets the market price
b)
Entry into the market is easy
c)
Firm sells a unique product
d)
One seller
79.
Perfect competition involves:
a)
Sellers working together to set prices
b)
A large number of buyers & sellers
c)
Difficulty entering & exiting the market
d)
Little information is available to buyers
80.
The market for milk is an example of perfect competition. Why?
a)
Sellers offer a nearly identical product
b)
Anyone can start a dairy farm or leave the dairy business at any time
c)
Many people buy and sell milk
d)
All of the above
81.
Which of the following statements is true?
a)
Monopolistic competitors have an incentive to differentiate their products so customers have choices, but monopolies do not have this incentive.
b)
Monopolistic competitors & monopolies have the same amount of influence over the price of their products.
c)
Both oligopolies & industries with monopolistic competition involve a large number of sellers.
d)
All industries fit neatly into one type of market structure.
82.
There are many sellers of blue jeans.  Each blue jean seller makes their product slightly different to set it apart from others. There is free entry and exit into the blue jean market. Which market structure does this describe?
a)
Perfect Competition
b)
Oligopoly
c)
Monopoly
d)
Monopolistic Competition
83.
What is not part of perfect competition?
a)
buyer/ seller are well informed
b)
sellers cannot enter/ exit market easily
c)
low prices
d)
few barriers of entry
84.

What prevents firms from entering a monopoly?

a)

Barriers to Entry

b)

Technology

c)

Price

d)

Barriers to Travel

85.
Economics is the study of
a)
how society manages its unlimited resources.
b)
how to reduce our wants until we are satisfied.
c)
how to fully satisfy our unlimited wants.
d)
how to avoid having to make trade-offs.
86.
Which of the following will not shift a country's production possibilities frontier outward?
a)
an advance in technology
b)
an increase in the labour force
c)
an increase in the capital stock
d)
a reduction in unemployment
87.
What is the slope of PPC
a)
Downward  concave
b)
Downward  convex
c)
 Upward  concave
d)
Upward concave
88.
The condition of consumer equilibrium under cardinal approach in case of one commodity is 
a)
price of commodity should be rising
b)
price of commodity should equal to be marginal utility
c)
price of commodity should be decreasing
d)
none of these
89.
At equilibrium under ordinal approach the MRS should be equal to
a)
MRTS
b)
Price Ratio
c)
Price
d)
Income
90.
The slope  of indifference curve is equal to
a)
price ratio
b)
marginal opportunity cost
c)
marginal rate of substitution 
d)
all of these
91.
The gap between TC and TVC is 
a)
rising
b)
decreasing 
c)
constant
d)
increases than decreases
92.
The condition of consumer equilibrium under cardinal approach in case of one commodity is 
a)
price of commodity should be rising
b)
price of commodity should equal to be marginal utility
c)
price of commodity should be decreasing
d)
none of these
93.
MU is zero when TU is....?
a)
Minimum
b)
Falling
c)
Maximum
d)
Increasing
94.
A consumer will be in equilibrium when........
a)
MUX=PX
b)
PX = PY
c)
MUX=MUY
d)
ALL OF ABOVE
95.
WHAT IS SLOPE OF IC.....
a)
MRSXY
b)
PX/PY
c)
MRTSXY
d)
MOC
96.
WHEN TP FALLS , MP IS
a)
POSITIVE
b)
ZERO
c)
NEGATIVE 
d)
NON OF ABOVE

Similar Resources on Wayground

QUIZ LABKOM 2023

100 questions

QUIZ LABKOM 2023

quiz

Worksheet

•

University

Babak Penyisihan OESN Siswa 2021

100 questions

Babak Penyisihan OESN Siswa 2021

quiz

Worksheet

•

10th - 12th Grade

Simulasi UTBK Akhir

91 questions

Simulasi UTBK Akhir

quiz

Worksheet

•

12th Grade

Tentang Teknologi Layanan Jaringan

100 questions

Tentang Teknologi Layanan Jaringan

quiz

Worksheet

•

12th Grade

TO FR JILID 3

100 questions

TO FR JILID 3

quiz

Worksheet

•

University

Government EOC Practice

100 questions

Government EOC Practice

quiz

Worksheet

•

9th Grade - University

Unit 2 Review

93 questions

Unit 2 Review

quiz

Worksheet

•

9th - 12th Grade

management midterm

100 questions

management midterm

quiz

Worksheet

•

University