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Eco Review Questions

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

It emphasizes that people have to consider what they are sacrificing when they decide what to buy, what job to do and what to produce and when governments are deciding what to spend their tax revenue on.

a)

Mircroeconomics

b)

Macroeconomics

c)

Opportunity cost

d)

Economic system

2.

A person decides to take vocational course for 2 years. If he had not gone, he could have taken up a job which could have paid him $10,500 a year. After he graduates he expects to find a job paying him $30,000 a year. What is the opportunity cost of taking vocational course?

a)

$10,500

b)

$21,000

c)

$30,000

d)

$15,000

3.

An increase in quantity or quality of resources will shift PPC to the __________.

a)

right

b)

left

4.

A fall in price causes ______________ of the demand curve while a rise in price causes ____________ of the demand.

a)

shift to the right, shift to left

b)

. shift to left, shift to right

c)

extension, contraction

d)

contraction, extension

5.

The price of Tuna decreases causing the demand curve of Salmon to __________.

_____________________ causes the demand curve to change.

a)

shift to left changes in taste and fashion

b)

shift to right changes in income

c)

shift to left changes in price of related products

d)

shift to right changes in price of related products

6.

The price of car increases causing the demand for car tires to ____________. How do you classify the latter good?

a)

increase complement good

b)

decrease complement good

c)

increase substitute goods

d)

decrease substitute goods

7.

The market system relies on _______________________ to allocate resources

a)

price mechanism

b)

directives

c)

needs of consumers

d)

needs of suppliers

8.

An increase in the average age of population will _________________________________.

a)

likely to increase demand for all types of products

b)

likely to increase demand for toys

c)

likely to increase demand for wheelchairs

9.

The price of Airasia airline tickets decreases causing its demand curve to ________________. The price of Malaysian Airline tickets didn't change causing its demand curve to ________________.

a)

shift to left shift to right

b)

shift to right shift to left

c)

contract shift to right

d)

extend shift to left

10.

A product that is used together with another product is called _____________________ wherein a product that can be used in place of another is termed as ___________________.

a)

inferior good normal good

b)

complement normal good

c)

complement substitute

d)

substitute complement