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Microeconomics Review (Unit 2)

Total questions: 64

Worksheet time: 44mins

Name
Class
Date
1.

What is economics? (the study of...)

a)

Money

b)

The Stock Market

c)

Decision Making

d)

Supply and Demand

2.

(a)   is where goods and services are sold.

3.

Which is NOT one of the factors of production?

a)

Land

b)

Entrepreneurship

c)

Labor

d)

Capital

e)

All of these are factors of production.

4.

(a)   is where the factors of production are sold.

5.

Which is NOT one of the three basic economic questions?

a)

What to produce?

b)

Where to produce?

c)

How to produce?

d)

For whom to produce?

6.

(a)   purchase goods and services from businesses and firms.

7.

(a)   purchase the factors of production from households.

8.

What is represented by the flow of money in the Circular Flow Diagram?

a)

Expenditures

b)

Goods and services

c)

Trade offs

d)

Natural Resources

9.

The law of (a)   is influenced by consumers.

10.

The law of (a)   is influenced by producers.

11.

(a)   is a graph that represents the law of demand.

12.

(a)   is a graph that represents the law of supply.

13.

What factors cause shifts in quantity demanded and supplied?

a)

Technology

b)

Determinants

c)

Resources

d)

Goods and Services

14.

If there is an increase in consumer income, the demand for a product will (a)   .

15.

If there is a decrease in the price of a complementary good, the demand for a product would (a)   .

16.

If there is an increase in the cost of resources, the supply of a product would (a)   .

17.

If there is a decrease in producer expectations for future prices, the supply would (a)   (in the present.)

18.

As prices increase, supply will generally (a)   .

19.

As prices decrease, demand will generally (a)   .

20.

As prices decrease, supply will generally (a)   .

21.

As prices increase, demand will generally (a)   .

22.

If there is an increase in supply, which direction will the curve shift?

a)

Right

b)

Left

c)

Up

d)

Down

23.

If there is a decrease in supply, which direction will the curve shift?

a)

Right

b)

Left

c)

Up

d)

Down

24.

If there is a decrease in demand, which direction will the curve shift?

a)

Right

b)

Left

c)

Up

d)

Down

25.

If there is an increase in demand, which direction will the curve shift?

a)

Right

b)

Left

c)

Up

d)

Down

26.

Which direction does the demand curve always flow in?

a)

Up

b)

Down

c)

Right

d)

Left

27.

What direction does the supply curve always flow in?

a)

Up

b)

Down

c)

Right

d)

Left

28.

(a)   is the amount of a good, service, or resource buyers are willing and able to purchase at one specific price.

29.

The market demand curve represents all the quantities of a good, service, or resource buyers are willing and able to buy at each price.

a)

True

b)

False

30.

Change in price does NOT cause the demand curve to shift.

a)

False

b)

True

31.

Which is a table that represents the relationship between price and quantity demanded?

a)

Supply Schedule

b)

Supply Curve

c)

Demand Schedule

d)

Demand Curve

32.

Which of these ARE demand determinants?

a)

Change in the price of related goods.

b)

Change in consumer income.

c)

Change in consumer expectations for future prices.

d)

Changes in consumer tastes and preferences.

e)

Change in the number of consumers in a market.

33.

What are related goods?

a)

Substitute goods

b)

Complementary goods

c)

Both A & B

d)

None of these

34.

(a)   is the amount of goods, services, or resources that sellers are willing and able to sell at one specific price.

35.

Which refers to ALL the quantities of a good, service, or resource sellers are willing and able to sell at each price?

a)

Demand Curve

b)

Supply Curve

c)

Supply Schedule

d)

Demand Schedule

36.

Change in price does NOT cause a shift in the supply curve.

a)

True

b)

False

37.

Which is a chart that represents the relationship between price and quantity supplied?

a)

Supply Curve

b)

Demand Curve

c)

Supply Schedule

d)

Demand Schedule

38.

Which ARE determinants of supply?

a)

Change in the cost of productive resources.

b)

Change in government regulations.

c)

Change in the number of sellers.

d)

Change in producer expectations for future prices.

e)

Change in technology.

39.

Decline in technology is unusual, but still possible.

a)

False

b)

True

40.

Which of these might cause a decline in technology?

a)

Natural Disaster

b)

Cyber Attack

c)

Both A & B

d)

Neither A nor B

41.

Which of these is NOT a basic business organization?

a)

Corporation

b)

Partnership

c)

Sole Proprietorship

d)

Monopoly

42.

Which business is owned by two or more individuals?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

43.

Which business is owned by only one individual?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

44.

Which business is owned by stockholders?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

45.

In which business does the owner have the most control over decisions, but the most liability?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

46.

Which business has an unlimited lifespan and has the most access to funds?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

47.

Which business confronts the most government regulations and taxation?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

48.

Walmart is an example of which business organization?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

49.

Al's Pancake World is an example of which business organization?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

50.

Smith & Sons Accounting Firm is an example of which business organization?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

51.

Which businesses have limited lifespans?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

52.

It is easiest to start up which business organization?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

53.

(a)   refers to businesses and firms adjusting prices and products to attract consumers?

54.

Which of these is/ are the basic market structures?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Monopoly

d)

Oligopoly

e)

All of the above

55.

Which market structure has numerous buyers and sellers?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Both A & B

d)

Neither A nor B

56.

Which of the following market structures has high barriers to entry?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Monopoly

d)

None of these

57.

Which of the following market structures has strong control over prices?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Monopoly

d)

None of these

58.

Which of the following market structures has no product differentiation?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

59.

Which of the following market structures has only one seller?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

60.

Which of the following market structures must utilize non-price competition?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

e)

Both B & C

61.

Which is an example of Perfect Competition?

a)

Bottled Water

b)

Cars

c)

Oranges

d)

Microsoft

e)

Cell phones

62.

Which is an example of an Oligopoly?

a)

Cell-Phone Companies

b)

Fast Food Restaurants

c)

Natural Gas

d)

Laundry Detergent

e)

Car Manufacturers

63.

Which is an example of Monopolistic Competition?

a)

Natural-Gas Companies

b)

Cars

c)

Fast-Food Restaurants

d)

Laundry Detergent

e)

Oranges

64.

Which is an example of a Monopoly?

a)

Laundry Detergent

b)

Microsoft

c)

Bottled Water

d)

Cell Phones

e)

Natural Gas