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4th Year Economics Summer Test 2021

Total questions: 30

Worksheet time: 18mins

Name
Class
Date
1.

Money that the government collects from individuals and businesses to pay for public goods and services

a)

Rand

b)

Tax

c)

dollar

d)

serving

2.

what do we call someone who took a risk and start a business?

a)

manager

b)

entrepreneurship

c)

entrepreneur

d)

enterprise

3.

What is the remuneration of an entrepreneur?

a)

profit

b)

wage

c)

salary

d)

rent

4.

Another name for natural resources

a)

land

b)

unnatural resources

c)

water

d)

air

5.

The study of factors of production falls under_

a)

economic pursuit

b)

contemporary economic

c)

microeconomics

d)

macroeconomics

6.

The definition of the law of diminishing marginal utility

a)

As more units are consumed the marginal utility falls.

b)

As more units are consumed the marginal utility increases.

c)

As price decreases quantity demanded increases.

d)

As price increases consumers are willing to pay more.

7.

The total utility definition states:

a)

The usefulness, benefit or satisfaction a consumer gains from life

b)

The satisfaction gained from consuming a quantity of an economic good, measured in utils.

c)

The added consumer satisfaction from consuming a quantity of a good.

d)

The consumer's satisfaction from consuming a quantity of a good.

8.

The wish to have something is_

a)

Desire

b)

Want

c)

Need

d)

Demand

9.

Willingness to pay for the want is_

a)

Need

b)

Desire

c)

Demand

d)

Show off

10.

If a consumer was to act rational, they would....

a)

will spend their income in such a way that they will achieve the most satisfaction from these goods and services

b)

see two identical products priced differently in two different shops they will buy the cheaper good

c)

will not demand something that does not provide satisfaction

11.

The law of demand argues that as prices rise

a)

the quantity demanded will fall

b)

the quantity demanded will rise

c)

the demand curve will shift to the right

d)

quantity demanded will fall due to a decrease in demand

12.

The 'law of supply' suggests that

a)

price and quantity supplied are directly related

b)

price and quantity supplied are inversely related

c)

movements along the supply curve are caused by a price fall

d)

supply will expand until market equilibrium is reached

13.
This part of the market determines DEMAND
a)
buyers
b)
sellers
c)
suppliers
d)
store owners
14.
This part of the market determines SUPPLY
a)
buyers
b)
sellers
c)
consumers
d)
us
15.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
16.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
17.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
18.
The movement from Point A to Point B represents a(n)
a)
increase in the price.
b)
decrease in the quantity supplied.
c)
shift in the supply curve.
d)
Both Orange and Blue are correct.
19.
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 
20.
Point at which supply and demand come together
a)
price ceiling
b)
excess demand
c)
equilibrium
d)
disequilibrium
21.

At equilibrium price:

a)

Quantity supplied = quantity demanded

b)

Price increases to soak up excess demand

c)

Price decreases to soak up excess supply

d)

Demand increases in response to the price of related goods

22.
The amount of goods available:
a)
Supply
b)
Demand
c)
Utility
d)
Equilibrium
23.
When the price is below the equilibrium price, more people are willing to buy alot of the product.
a)
false
b)
true
24.
A supply curve slopes:
a)
Upward
b)
Downward
c)
Vertical
d)
Not at All
25.

Market forces are best described as

a)

supply and demand determining prices

b)

the government set a minimum price for corn so farmers can make more money

c)

the government setting a maximum price on gas so people can save money

d)

a group of buyers and sellers for a particular good or service

26.

Which of the following demonstrates price equilibrium?

a)
b)
c)
d)
27.

Which of these demonstrates a surplus of goods?

a)
b)
c)
d)
28.
If Ann gets 100 units of utility from reading a book and 500 units of utility from playing with her cat, we know that Ann
a)
does not enjoy reading books
b)
does not enjoy playing with her cat
c)
prefers reading a book to playing with her cat
d)
prefers playing with her cat to reading a book
29.
As more of a good is consumed, total utility
a)
increases
b)
decreases
c)
remains the same
d)
becomes negative and then turns positive
30.
Marginal utility is equal to which of the following
a)
total income divided by the price of the product
b)
the change in total utility from consuming one more unit of a good
c)
the satisfaction obtained from consuming any number of units of a good
d)
none of the above is correct