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Economics Review - Week 3

Total questions: 35

Worksheet time: 1hrs 10mins

Name
Class
Date
1.

What determines the prices of goods and services?

a)

Supply

b)

Demand

c)

Supply and demand

d)

Goods

2.

What exists when quantity supplied is greater than quantity demanded?

a)

Surplus

b)

Shortage

c)

Overflow

d)

Mass outrage

3.

A market is said to be in equilibrium when

a)

when demand is higher than the supply

b)

when demand is lower than the supply

c)

when the demand and supply quantities are equal

d)

when the supply is doubled the demand

4.

the price at which a good is bought and sold in a market equilibrium is called

a)

retail price

b)

equilibrium price

c)

discount price

d)

base price

5.

Kanye West's new shoe the Yeezy Boost sold out in stores. This is an example of...

a)

shortage

b)

surplus

c)

equilibrium

d)

supply

6.

What happens to price when the market has a surplus

a)

price drops

b)

price stays the same

c)

price increases

d)

price triples

7.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
8.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
9.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
10.
Goods that are bought and used together are 
a)
complementary goods
b)
substitute goods
c)
income goods
d)
unrelated goods
11.
Which of the following is likely to increase the demand for peanut butter?
a)
Fewer children in the population
b)
News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
c)
A big increase in the price of jelly.
d)
A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
12.
Which statement expresses a central idea of how the laws of supply and demand work?
a)
The government sets the prices for goods and services.
b)
Prices are determined by the interaction of producers and consumers.
c)
Consumers alone determine the prices for goods and services.
d)
Technology dictates the prices charged for goods and services.
13.
What does this graph show?
a)
Shortage
b)
Surplus
c)
Supply Table
d)
Equilibrium
14.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
15.
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.
16.
The opportunity cost of increasing production from 7 to 9 trucks is
a)
Scarcity
b)
2 boats
c)
2 trucks
d)
3 boats
17.

What does point B represent?

a)

Production at greater than the country's minimum potential

b)

Production is less than the country's minimum potential

c)

Production is greater than the country's maximum potential

d)

Production at the country's maximum potential

18.
What does point Y represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
19.

Which of the following are the choices in case the technology is fixed and all resources are efficiently employed. Choose the correct option/s.

a)

G

b)

C

c)

A

d)

E

e)

B

20.

Which coordinate(s) is/are inefficient to produce both products? Choose the correct option/s.

a)

B

b)

F

c)

G

d)

E

21.

What is macroeconomic policy objective?

a)

to increase employment

b)

to increase the output of the car industry

c)

to reduce the price level

d)

to reduce economic growth

22.

It is the study of the economy of the nation as a whole.

a)

Microeconomics

b)

National economy

c)

National output

d)

Macroeconomics

23.

It is the measure of a country's total production of final goods and services in a given period of time.

a)

Gross National Product

b)

Gross Domestic Product

c)

Exports

d)

Imports

24.

It is the continuing increase of the general price level in the market.

a)

Inflation

b)

Deflation

c)

Stagflation

d)

Recession

25.

It is the decrease in the general level of prices of basic commodities.

a)

Inflation

b)

Deflation

c)

Stagflation

d)

Stagnation

26.

Which of the following situation describes unemployment?

a)

Robert is a full-time student.

b)

Sharon just graduated from college.

c)

George earns 70 pesos an hour.

d)

Gene works after school as a bagger at a local grocery store.

27.

Macroeconomics approaches the study of economics from the viewpoints of

a)

individual firms

b)

individual consumers

c)

government units

d)

the entire economy

28.

The three major macroeconomic goals do not include

a)

full employment

b)

price level stability

c)

sustained economic growth

d)

high levels of environmental quality

29.

A country is said to be experiencing inflation when…

a)

Prices of most goods and services are rising over time

b)

Total output is falling over time

c)

Total output is rising over time

d)

Prices of most goods and services are falling over time

30.

Define the unemployment

a)

State of having a paid job being to employ someone to pay them to work

b)

Labour force participants being available and willing to work , but are unable to find jobs

c)

Measure of the extent to which available labour resources

d)

Legislation that provides for financial compensation for employees injured at work

31.

What measure shows how well the economy is doing over time?

a)

Gross Domestic Product

b)

Unemployment Rate

c)

Inflation Rate

32.

Select the three macroeconomic policy goals from the following list.

a)

Keep the economy growing over time

b)

Limit unemployment

c)

Keep prices stable

d)

Raise unemployment

e)

Keep the economy shrinking over time

33.

Which of the following is not concerned with Macroeconomics?

a)

National Income Accounting

b)

Inflation

c)

International Trade

d)

Individual Firm

34.

One measure of the economy macroeconomists pay attention to to study the pace of growth in the economy is

a)

supply

b)

inflation

c)

demand

d)

equilibrium price

35.

Which of the following best defines “unemployment”?

a)

When a person is not earning a wage.

b)

When a person is actively looking for a job, but is unable to find one.

c)

When a person is actively working, but not earning a wage or salary.

d)

When a person is earning a wage while working at a regular job.