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ECONOMICS QUIZ

Total questions: 50

Worksheet time: 2hrs 40mins

Name
Class
Date
1.

Microeconomics deals with

a)

economy as a whole

b)

individual

c)

none of these

d)

both economy as whole and individual

2.

study of Microsoft company profit for the year 2020-21 is an example of?

a)

Microeconomics

b)

Macroeconomics

c)

Any of the two-microeconomics or macroeconomics

d)

None of these

3.

Macroeconomics deals with

a)

Economy as a whole

b)

Individual

c)

Both Economy as a whole as well as individual

d)

None of these

4.

"Studying the GDP contribution made by three sectors of the economy i.e. Primary sector, Secondary sector and Tertiary sector" is an example of?

a)

Microeconomics

b)

Macroeconomics

c)

Any of these

d)

None of these

5.

Land includes...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

the tools, equipment, and factories used in production of goods and services

c)

people with all their efforts and abilities

d)

individuals who start a new business or bring a product to market.

6.

What are the four factors of production?

a)

Natural Resources, Capital, Need & Want

b)

Natural Resources, Labor, Capital, Entrepreneurs

c)

Water, Air, Food & Shelter

d)

Land, Capital, Goods & Services

7.

Natural Resources includes...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

the tools, equipment, and factories used in production of goods and services

c)

people with all their efforts and abilities

d)

individuals who start a new business or bring a product to market.

8.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

9.

Labor refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

10.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

The "gifts of nature" or natural resources not created by human effort.

d)

the tools, equipment, and factories used in production of goods and services

11.

A herd of cattle is an example of ...

a)

Natural Resources

b)

Labor

c)

Entrepreneur

d)

Capital

12.

Forests are examples of...

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

13.

A bulldozer is an example of...

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

14.

Your garbage man is an example of

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

15.

Your Mail lady is an example of...

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

16.

A steel factory is an example of

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

17.

TheiPads you are using are examples of

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

18.

Bill Gates is an example of...

a)

Natural Resources

b)

Labor

c)

Entrepreneur

d)

Capital

19.

Cashiers at McDonalds are examples of ….

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

20.

What are the three essential questions economics must answer to address scarcity?

CHECK ALL THAT APPLY

a)

HOW to produce

b)

FOR WHOM to produce

c)

WHAT to produce

d)

WHEN to produce

e)

WHY to produce

21.

Labor refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

22.

Forests are examples of...

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

23.

A bulldozer is an example of...

a)

Natural Resources

b)

Labor

c)

Entrepreneurs

d)

Capital

24.

Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store are reduced. What causes this change?

a)

Prices or availability of substitutes

b)

Prices or availability of complementary goods

c)

Change in the weather or season

d)

Change in the number of buyers

25.

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

a)

There is a change in cost of production.

b)

The number of producers changes.

c)

The expectations of consumers changes.

d)

The output rate declines.

26.

Which of the following best refers to the market equilibrium price?

a)

Surpluses depress the number of goods supplied.

b)

Shortages and surpluses will have no effect on the market.

c)

The government will not intervene in the market.

d)

The quantity demanded is the same as the quantity supplied.

27.

Mr Coyote goes to the ticket booth to buy tickets for a Spurs game. Mr. Coyote is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available?

a)

The arena forgot to print enough tickets.

b)

The supply of tickets was greater than the demand.

c)

The arena charged too much money for each ticket.

d)

The demand for tickets was greater than the supply.

28.
Which situation is most likely to lead to the lowest prices?
a)
There is only one producer making the good.
b)
Businesses secretly agree to share their profits.
c)
Competition between businesses is prohibited.
d)
Several producers compete to sell goods to the public.
29.

Suppose you like banana cream pie made with vanilla pudding. Assuming all other things are constant, you notice that the price of bananas is higher. How would your demand for vanilla pudding be affected by this?

a)

It would decrease.

b)

It would increase.

c)

It would be unaffected.

d)

There is insufficient information given to answer the question.

30.

Refer to Graph 4-1. The movement from point A to point B on the graph shows

a)

a decrease in demand.

b)

an increase in demand.

c)

an increase in quantity demanded.

d)

a decrease in quantity demanded.

31.

Refer to Graph 4-4. On the graph, what could most likely cause the movement from S to S1?

a)

A decrease in the price of the good.

b)

An increase in income.

c)

An improvement in technology.

d)

An increase in input prices.

32.

Which economic system promotes competition?

a)

Communism

b)

Capitalism

c)

Socialism

33.

Who controls the means of production in a socialist society?

a)

The people

b)

Working class

c)

Government

d)

Private companies & individuals

34.
Scarcity causes economic problem. Which of the following statements is true about scarcity?
a)
Scarcity is our inability to satisfy all of our wants.
b)
Scarcity problem arises because our wants are greater than resources available.
c)
The poor and the rich both face scarcity.
d)
All of the above.
35.

Which the following does NOT illustrate opportunity cost?

a)

If I spent more on food, I must spend less on clothes.

b)

If I buy computer, I could nit own on a 29” television.

c)

If I study today, I must give up going to the football game.

d)

If I buy book, I also can buy new shoes.

36.

Economics is defined as ___________________.

a)

a study of social science that studies man’s behavior in the distribution of limited factors of production.

b)

a study if the behavior of individuals in the determination of the optimum level of production at the minimum cost.

c)

the science of wealth in a community, focus on the distribution of factors production an income.

d)

a study of social science that focuses on behavior of individuals in the allocation of limited production factors to fulfill unlimited wants.

37.

Opportunity cost is defined as ________________.

a)

the cost of the second best option that will have to be forgone in order to select the best option.

b)

the fixed cost involved in the short term.

c)

the cost used in a factor of production.

d)

the cost related to the optimum level of production.

38.
If a natural disaster strikes, the production possibilities curve can shift
a)
No shift
b)
To the left
c)
To the right
d)
Outward on one axis only
39.
If a mass immigration occurs, the production possibilities curve can shift
a)
No shift
b)
To the left
c)
To the right
d)
Outward on one axis only
40.
If there is improved technique of Production in both the goods , how the PPC will be affected?
a)
Leftward shift of PPC
b)
Rightward shift of PPC
c)
Rotation of PPC
d)
None of the above
41.

Economics can be divided into two major branches which is

a)

international economics and macroeconomics

b)

labor economics and microeconomics

c)

microeconomics and macroeconomics

d)

international economics and domestic economics

42.

Bill Gates, the founder of Microsoft makes millions in a second. One day as he was walking along Jalan UMS, he found RM1,000. Should Bill Gates pick up the money he found and keep it for himself?

a)

Yes, RM1,000 is a lot of money. Bill Gates can use the money for his needs. If he did not pick it up his opportunity cost will be high.

b)

Yes, RM1,000 might be picked up by another person. Might as well Bill Gates pick it up. His opportunity cost is low.

c)

No. RM1,000 is much lower than what Bill Gates earns in a second. He should not waste time bending over to pick the money. His opportunity cost is high.

d)

RM1,000 is much lower than what Bill Gates earns in a second. He should not pick it up because his opportunity cost is low.

43.

PTPTN is an education loan given to Malaysian students pursuing their education in the local university. Malaysia practices (a)   economic system

44.

An increase in supply causes the supply curve to shift to the

a)

right

b)

left

c)

no change

45.

A government subsidy will usually cause supply to

a)

increase

b)

decrease

c)

not change

46.

If a firm can use the same resources to produce goods A and B and good A is selling at a higher price, what will happen to the supply of good B?

a)

It will decrease

b)

It will increase

c)

It will not change

47.

When the quantity demanded is greater than the quantity supplied it is known as

a)

equilibrium

b)

a shortage

c)

a surplus

d)

an opportunity cost

48.

Which of the following is a way that a firm can eliminate a surplus?

a)

raise prices

b)

create a new product

c)

offer a sale on the item

49.

When demand increases, the equilibrium price and quantity supplied will both

a)

increase

b)

decrease

c)

stay the same

50.

The diagram shows a tax on a good rising supply from S1 to S2.

The price to the consumer rises from $4 to $5. What is the amount of tax?

a)

$2

b)

$3

c)

$4

d)

$5