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WorksheetsC&E Microeconomics
Total questions: 18
Worksheet time: 18mins
If the government determines that coffee provides added health benefits, what will happen to the demand for coffee?
Demand will increase (right shift)
Demand will decrease (left shift)
Quantity demanded will increase
Quantity Demanded will decrease
The chocolate factory received a new machine that speeds up production. What will happen to the supply of chocolate?
Supply will increase (right shift)
Supply will decrease (left shift)
Quantity supplied will increase
Quantity supplied will decrease
Primary functions of business income include: provide worker compensation, maintain business facilities, pay for other business overhead, and which of these?
Create a company hierarchical system
Establish community training programs
Donate to charitable foundations
Ensure maximum amount of profit
What type of market structure is dominated by a few large firms, companies sell identical goods, and producers face high barriers to enter the industry?
Monopoly
Oligopoly
Pure Competition
Monopolistic Competition
Today there are a several different operating systems for personal computers. Every computer needs a single operating system. Selecting the best system can be difficult, since each has a different set of strengths and weaknesses.
Which type of market is associated with these characteristics?
Monopoly
Oligopoly
Pure Competition
Monopolistic Competition
The Intercoastal Aluminum Company makes aluminum products. It buys a fixed amount of aluminum through yearly contracts. Business in aluminum beverage cans is growing rapidly, while the market for aluminum foil has declined. This year, Intercoastal decides to use more of its aluminum for cans and less for foil.
In this scenario, what is the opportunity cost of producing more cans?
the price of the total foil being produced
the profits for the foil that was being produced
the profits for the total number of cans being produced
the price of the extra cans now being produced
Which statement BEST explains the importance of economic decision making when scarcity is a factor?
Each choice results in an opportunity cost.
Economic decisions are made by the majority.
Economic decisions provide access to more resources
Each choice must be made with incomplete information.
Land, Labor, Capital, and ______________ are the four factors of production.
Entrepreneurship
Consumer Demand
Regulation
Urban Growth
In which market structure do many producers sell products that are identical to one another?
Monopoly
Monopolistic Competition
Oligopoly
Pure Competition
On a supply & demand graph, what do the X and Y axis represent?
Price & Quantity
Efficiency & Quality
Efficiency & Resources
Resources & Price
If the price of Coke increases, what happens to the demand for Pepsi?
Demand will increase
Demand will decrease
Quantity demanded will increase
Quantity demanded will decrease
Which economic change best explains a reduction in coffee prices?
increased need for subsistence farming
improved technology for commercial production
rapid wage increases for factory workers
adoption of tariffs on imported goods
Why does the U.S. government enforce antitrust laws?
to ensure the development of public goods and services
to create incentives for research and development
to develop large-scale efficient industries
to ensure competition in the marketplace
In countries with socialist governments, large industries are sometimes controlled by the government.
Why doesn’t the government of the United States control any large industries?
because the United States places more importance on the value of private property
because the United States supports a greater departure from a market system
because the United States places less emphasis on encouraging competition
because the United States supports less investment for infrastructure development
A significant increase to the minimum wage is likely to
decrease worker productivity levels.
improve job stability
increase prices of consumer products.
decrease the unemployment rate
An owner of a landscaping business received extra income in the previous month. She is considering either buying a new lawnmower or spending the money on an advertising campaign in order to increase business in the next few months.
If the business owner chooses to spend the money on an advertising campaign, what is the opportunity cost?
next month’s income
increased business
the extra income
the lawnmower
Which is the most likely explanation for an excess supply of apples in a competitive market?
Demand exceeds supply in the current market.
The current price is lower than the equilibrium price.
The current price is higher than the equilibrium price.
There is a scarcity of apple producers in the current market.
Seller X charges $5 for a medium cheese pizza. Seller Y raises the price for its medium cheese pizza from $5 to $7.
What effect will the price change most likely have on demand?
The demand will increase for both sellers.
The demand will increase for pizza from Seller Y.
The demand will decrease for pizza from Seller X.
The demand will decrease for pizza from Seller Y.
