NEW
Font size
WorksheetsQUIZ#1 ECON
Total questions: 30
Worksheet time: 5mins
Normally the demand curve will have a _______________ shape.
Upward Sloping
Vertical
Horizontal
Downward Sloping
Which of the following is not a cause of the shift in demand for a product?
Change in the price of substitutes
Change in the income of a consumer
None of the above
Change in the price of the product
When the quantity demanded of a goods is equal to the quantity supplied of that goods, then _.
There is a surplus
The government is intervening in the market
There is a shortage
None of the above
The law of demand states, with increase in price there is
Increase in quantity demanded
Decreased demand
Increased demand
Decrease in quantity demanded
The following would cause a change in the quantity demanded for a product?
Decreasing price of product
increasing consumer income
changing consumer tastes
changing prices of related products
The Law of Demand is measured from the perspective of
Consumer
Firm
Wholesaler
Manufacturer
Goods for which demand goes down when income goes up are called
Inferior Goods
Normal Goods
Private Goods
Public Goods
Mini Case: Suppose there is excess supply of “Tusok Tusok,Kwek Kwek” in a market and the price decreases. Which of the following combinations of this events will occur?
There will be a fall in quantity supplied and a rise in demand.
There will be a fall in quantity supplied and a rise in quantity demanded
There will be a fall in supply and a rise in quantity demanded.
There will be a fall in supply and a rise in demand.
In a circular flow model, the purpose of Government intervention is for:
Taxes
Expenditure
Savings
Borrowings
A modern monetary economy comprises a network of four sector economy these are:
Household, Firm, Banking and Consumer
Firm, Producing Sector, Banking and Consumer
Household, Firm, Banking and Producing Sector
Household, Producing Sector, Banking and Government Sector
Is the best alternative that is forgone to produce or consume something else.
Opportunity Cost
Trade-off
Choice
PPF
This shows all the different combinations of output of two goods that can be produced using available resources and technology.
PPF
PPC
PPB
All of the above
If an economy is operating inside its current PPF then it must be experiencing:
Unemployment
Inflation
Efficient use of resources
Decifit
Which point on the PPF diagram is currently not achievable?
Z
A
B
X
The production possibilities curve is an illustration of what?
Opportunity costs and trade-Off
Only opportunity costs
Only trade-offs
None of the above
What do points outside of the PPF indicate?
Unattainable combinations of goods
Inefficient combinations of goods
Ideal combinations of goods
Unattainable and Inefficient
Economic growth affects the PPF by:
turning it into a straight line
causing no change at all
Shifting inward
Shifting outward
Which point represents "resources are not being used efficiently, or resources are being wasted or idle"?
X
A
Y
All of the above
As we move from point A to point D,
the opportunity cost of eggs in terms of bacon rises.
the economy becomes less efficient.
the opportunity cost of eggs in terms of bacon is constant.
the opportunity cost of eggs in terms of bacon falls.
True or False: Everything that is scarce requires a choice, and these choices always involve a tradeoff.
TRUE
FALSE
What is the production possibilities curve?
a graph that shows how much an economy can produce between 2 goods
the opportunity one must give up gaining something else
how much money something is
land, labor, capital, entrepreneurs
What is opportunity cost?
the opportunity one has to give up in order to gain something else
a graph that shows how much an economy can produce between 2 goods
how much money something is
land, labor, capital, entrepreneurs
How do you satisfy your unlimited wants in a world of limited resources?
by making choices
by setting a budget
by borrowing
making more money
What is the fundamental problem of every society?
Scarcity
Market Fluctiations
Labor costs
Economic sabotage
Land, Labor, Capital, and Entrepreneurship
Factors of production
Diversification
Portfolio
Resources
Changes in technology do not usually affect production
False
True
What is the Equilibrium Price?
3
1
2
4
The diagram represents a(n)
increase in supply
change in quantity supplied
decrease in supply
none of the above
On the market demand and supply graph, the vertical axis shows
Prices
Demand
Quantity
Equilibrium
A supply schedule is related to a supply curve because
the supply curve shows the data from the supply schedule in graphic form
the supply curve shows the data from many supply schedules
the supply curve shows the data from many supply curves
the supply schedule shows the data from the supply curve in graphic form
