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Worksheets

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Total questions: 25

Worksheet time: 20mins

Name
Class
Date
1.
In this type of economy, the people decide the supply, demand, and price.  
a)
Market 
b)
Traditional
c)
Command 
d)
Mixed
2.

Privatization refers to ....

a)

Transfer of assets from people to government

b)

Transfer of assets from public to private organizations

c)

Transfer of assets from corporate to public

d)

Transfer of assets from corporate to government

3.

What is a consumer?

a)

a person who takes things

b)

a person who purchases goods and services for personal use

c)

a person who takes good away

d)

the economic factors affecting the price, demand, and availability of a commodity

4.

What is a free market economy?

a)

An economy based on supply and demand with little or no government control

b)

The international exchange of goods

c)

An economy in which decisions are made by the government

d)

An economy that is communist

5.

If the supply of a good is higher than the demand, what happens to the price?

a)

stays the same

b)

price increases

c)

price decreases

6.
How do most people obtain goods or services today in America?
a)
Money
b)
Trading
c)
Bartering
7.
What do you need to produce other goods and services?
a)
consumer goods
b)
capital goods
c)
nondurable goods
d)
Gross Domestic Product (GDP)
8.
Money remaining after expenses have been paid.
a)
wage
b)
interest
c)
profit
d)
leftover
9.
The ability to buy something with a promise to pay later
a)
barter
b)
credit
10.
Money kept in a checking account
a)
demand deposit
b)
medium of exchange
11.
When there is not enough of a certain item, it is called 
a)
plenty
b)
supply
c)
demand
d)
scarcity
12.
If there is something for which people want more, what frequently happens in an open market?
a)
Prices go up
b)
Prices go down
c)
Prices stay the same
13.
When there is not enough of something that people need, such as food or water, what word describes what the government might do in order for as many people as possible to get what they need?
a)
gouging
b)
allocation
c)
demand
14.

Banknotes and coins are collectively called (a)   .

15.

List the four key functions of money.

4 lines
16.

What is an advantage of Market Economic System in the following list? (there could be one or more answers)

a)

Wealth inequalities

b)

Incentives

c)

Factor mobility

d)

Efficiency

17.

What is right list of Economic Freedom, from free to repressed?

a)

Singapore, New Zealand, Australia, Chile

b)

Chile, Ireland, Hong Kong, New Zealand

c)

Hong Kong, Singapore, Switzerland, Ireland

18.

What is Pester Power?

4 lines
19.
An increase in demand will shift the demand curve...
a)
Right 
b)
Left 
c)
no movement 
d)
no change
20.

If the firm have more spare capacity, then it will be possible for the firm to increase supply. This means supply is

a)

Elastic

b)

Inelastic

c)

Unitary elasticity

21.

When the price is more and the firms are able to produce more to take the benefit of this increase in price, then supply is said to be....

a)

Elastic

b)

Inelastic

c)

Unitary elasticity

d)

None of the above

22.

Supply is more price elastic if more time is available as the firms can adjust the supply and increase the supply when price are increasing.

a)

True

b)

False

23.
Demand is unit elastic if it is less than 1.0
a)
True
b)
False
24.
The formula for calculating elasticity of demand is:
a)
The % change in price over the % change in quantity demanded
b)
The % change in quantity demanded over the % change in price
c)
The change in price over the change in quantity demaned
d)
The change in quantity demanded over the change in price
25.

What does it mean?

Ed = 0

a)

Perfectly inelastic demand

b)

Inelastic demand

c)

Unitarily elastic demand

d)

Elastic demand

e)

Perfectly elastic demand