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WorksheetsMicroeconomics Review
Total questions: 38
Worksheet time: 20mins
Which of the following would be a compliment to a hamburger patty?
hotdog wiener
hamburger bun
pizza
bubble bath
Chocoloto is a company that makes chocolate bars. The cost of chocolate, which is used to make the bars, goes up. Which graph correctly shows what will happen?
Look at the graph. If the price of the good is at P1, what does the space between Q1 and Q3 (marked by the red line) indicate?
surplus
equilibrium
shortage
quantity supply shift
Look at the market supply and demand schedule. Which price would there be equilibrium?
$7
$5
$3
$1
Disney has partnered with Adidas shoes to create a new line of Star Wars shoes. Everyone who loves Star Wars rushes to buy the shoes. What determinant of demand does this example illustrate?
Change in Consumer Income
Change in Price of Subsitute
Change in Taste and Preferences
Change in Number of Consumers
Which of the following would NOT cause a shift in demand for pork chops?
An increase in consumer income.
A change in the price of pork chops.
A rise in price of chicken.
A study released saying pork chops will extend your life.
Study the supply and demand model. Which statement best explain the change shown in the model?
10 more producers enter the market.
The government places a tax on the product.
An popular athlete endorses the product.
A new machine is introduced making it easier to produce the product.
Study the demand curve. The price of the product decrease from 40 to 20. Which of the following statements would be true?
The quantity demanded increased from 20 to 40
The quantity demanded decreased from 50 to 10
The quantity demanded increased from 10 to 30
The curve would shift to the right
As price increased of a product the quantity demanded will decrease. What is this?
The Law of Supply
The Law of Demand
The Law of Market Equilibrium
Newton's Law
The price of chicken and fish are both $10 a pound. The price of chicken rises to $20 a pound. What effect will this have on the demand for fish?
There will not be change in demand for fish.
The price of fish will increase to $15 a pound.
The demand curve for chicken will shift to the left.
The demand curve for fish will shift to the right.
The capital of Alpacastan, Floofytown, see 15 new restuarants that serve oat burgers. Which statement is true?
There will be an increase in demand for substitute foods like corn.
The price of oat burgers will rise.
The supply of oat burgers will increase.
The demand for oat burgers will decrease.
Movement on the demand and supply curves can only be caused by...
price
increase in consumer income
decrease in resource production
change in consumer tastes
Study the graph on Bananas. If the price increased for $1.00 to $1.25 what will be created?
a surplus
a shortage
equilibrium
a shift in the supply curve.
The Law of Supply states. As price ________________ the amount suppled will decrease.
rises
decreases
remains the same
in demand rises
Which of the following business models has the fewest number of firms?
perfect competition
oligopoly
monopoly
monopolistic competition
John owns a sole proprietorship and Jane works for a corportion. How do there businesses differ?
Jane's business is owned by only one person
John has no liability in something goes wrong in his business
Jane's business sells stock to raise money.
John's business requires a legal charter to start
Larry wants to open an Arby's franchise. What is a franchise?
A small business where one person starts the bunsiness and has complete contol over all parts of running the business.
A business arrangement where a small business owner pays a larger company to use their name and business model.
A small business that slightly changes the name and business model of a larger business to imitate it.
A type of monopoly that requires carefully monitoring legal issues.
Which of the following market types has only a few competing firms?
monopoly
oligopoly
pefect competition
monopolistic competition
In pefect competition there are...
a few firms making similar products.
lots of firms making different products.
one firm making one product.
lots of firms making identical products.
David's Toupee Tent, is a small business owned and operated only by David. What type of business is this?
sole proprietorship
partnership
limited liability company
corporation
A barrier to entry is...
illegal in the United States
a stairway to heaven
anything that protects a from new firms opening and competiting against them
the economic term for diseconomy of scale
Lee sells his home and decides to invest $100,001 of his money in a business. He wants to invest in the business that has the least amount of liability. What should he invest in?
sole proprietorship
partnership
limited liability corporation
corporation
Which of the above diagrams illustrate(s) the effect of a decrease in incomes upon the market for secondhand clothing?
A
B
C
D
Refer to the above diagram. A price of $20 in this market will result in:
equilibrium.
a shortage of 50 units.
a shortage of 100 units.
a surplus of 100 units.
Refer to the above diagram. The equilibrium price and quantity in this market will be:
$1.00 and 200.
$1.60 and 130.
$.50 and 130.
$1.60 and 290.
Which of the following will not cause the demand for product K to change?
a change in the price of close-substitute product J
an increase in consumer incomes
a change in the price of K
a change in consumer tastes
An effective ceiling price will:
induce new firms to enter the industry.
result in a product surplus.
result in a product shortage.
clear the market.
Uptown Charlotte has a large number of upscale restaurants. Some of the restaurtants begin to close as rent prices become to high. What will hapeen to the equilibrium price and quantity of upscale restaurants as they begin to close? (Hint: Graph It on Paper)
The equalibrium price and quantity will increase.
The equalibrium price and quantity will decrease.
The equalibrium price will decrease and the quantity will increase.
The equilibrium price will increase and the quantity will decrease.
In Washington DC, rent on apartments began to rise so high that people could no longer afford to rent and homelessness increased. The city decided to put a limit rent increases. What economic concept is this?
price ceiling
price floor
law of market equilibrium
law of shifting priorities
The city of Seattle raised the minimum wage to $20/hour. Now no worker in the city can be paid below $20/hour for any job. Which economic principle is this?
price ceiling
price floor
the law of price equilibirum
the law of market deficit
There is more demand for a good than the supplier is willing to provide at a given price. What economic term is this?
surplus
shortage
equilibrium
circular flow
Wages of bus drivers increase. At the same time, incomes of consumers generally increase. In the market for bus rides (an inferior service), we should expect to see curves shift. Which statement is true?
we cannot tell the change in price but the quantity will decrease
the equilibrium price and quantity will both decrease
the equilibrium price will increase and the quantity will decrease
the equilibrium price decrease and the quantity will increase
The price of computer memory chips increases. In the market for computers, we would expect to see:
Equilibrium price and quantity increase
Equilibirum price and quantity decrease
Equilibirum price increase and quantity decrease
Equilibrium price decrease and quantity increase
The Southeastern states have the highest number of Right-to-Work Laws. Which statement would be true about southeastern states?
Wages in the southeastern states should be higher than every other parts of the country.
Unemployment should be higher in the southeastern states than other parts of the country.
Wages in the southerastern states should be lower than other parts of the country.
Union dues would be highest in the southeastern states.
At Disney World, shop stewards are sent to negotiate with the management every year to get higher wages and better benefits. What is the name of this type of union negotiations?
collective bargaining
strike
walk-out
aggressive negotiations
Computer programmers at all he major computer companies go on strike. Which graph represents what would happen to the supply and demand?
A
B
C
D
The government gives money to farmers to make sure they keep their prices low and grow enough crops. What economic term does this refer to?
tax
subsidy
scale
tariff
When workers refuse work in order to force their employers to meet their demands, what union tactic is this?
collective bargaining
strike
sweatshop
slow go
