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WorksheetsEconomics Unit 2 Revision
Total questions: 10
Worksheet time: 8mins
Name
Class
Date
1.
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
2.
Price elasticity of demand measures:
a)
the responsiveness of the quantity demanded of a good to a change in income.
b)
the responsiveness of the quantity demanded of a good to a change in consumers’ preferences.
c)
the responsiveness of the quantity demanded of a good to a one percent change in price.
d)
the reduction in the quantity demanded of a good when the price is reduced.
3.
If demand price elasticity measures 2, this implies that consumers would:
a)
buy twice as much of the product if the price drops 10 per cent.
b)
require a 2 per cent drop in price to increase their purchases by 1 per cent.
c)
buy 2 per cent more of the product in response to a 1 per cent drop in price.
d)
require at least a $2 increase in price before showing any response to the price increase.
4.
Price elasticity of demand measures:
a)
the responsiveness of the quantity demanded of a good to a change in income.
b)
the responsiveness of the quantity demanded of a good to a change in consumers’ preferences.
c)
the responsiveness of the quantity demanded of a good to a change in the price of that good.
d)
the reduction in the quantity demanded of a good when the price of that good is reduced.
5.
Which statement about price elasticity of demand along a linear demand curve is true?
a)
As the quantity demanded increases, so does the buyer’s sensitivity to price.
b)
When price elasticity of demand is equal to 1, consumers are indifferent to subtle price changes.
c)
The ratio of current price to quantity demanded is a good estimate of the elasticity of demand.
d)
The elasticity of demand is less elastic at a lower price.
6.
The number of computers bought increased by 20 per cent when the price of online services declined by 10 per cent. Assuming other factors are held constant, computers and online services are classified as:
a)
complements.
b)
unrelated goods.
c)
substitutes.
d)
social goods.
7.
The cross elasticity between two goods, X and Y, is positive. From this, we can conclude that goods X and Y are:
a)
substitute goods.
b)
complementary goods.
c)
unrelated goods.
d)
inferior goods.
8.
If the price elasticity of supply equals zero, this implies that:
a)
suppliers can easily change the quantity supplied of the product as the price of the product changes.
b)
the period under consideration is a very long time period.
c)
the supply curve is perfectly vertical.
d)
the percentage change in quantity supplied exceeds the percentage change in product price.
9.
What area represents producer surplus in the graph shown here if this market is in equilibrium?
a)
P2MP0
b)
P4MP2
c)
LMN
d)
P4PLN
e)
P0MP4
10.
What area represents producer surplus in the graph shown here if this market is in equilibrium?
a)
P2MP0
b)
P4MP2
c)
LMN
d)
P4PLN
e)
P0MP4
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