WorksheetsECONOMICS Review
Total questions: 84
Worksheet time: 1hrs 26mins
Which of these is an example of an inferior good?
What is the definition by economists of a successful business?
One that is able to generate an enormous amount of profit
A business that is able to stay open with minimal debt
One that generates just enough income to cover all costs
Any business that sells shares on the NYSE
What concept does this image show?
A production possibilities schedule
A market demand curve
A supply schedule
Supply elasticity
Which is an example of technology increasing productivity?
A new computer system crashes and work comes to a halt.
Management trains and motivates workers to increase their output.
New packaging looks better but does nothing to reduce costs.
A new machine in a factory is twice as fast as its predecessor.
Which is the only factor that would cause a change in quantity supplied?
Change in price
Change in cost of resources
Change in cost of technology
Change in government regulations
Which is the best paraphrase of the Law of Supply?
More will be offered for sale at lower prices than at higher prices.
Supply is affected only by demand.
More will be offered for sale at high prices than at lower prices.
The quantity offered for sale at all possible prices in a market changes frequently.
A change in the number of sellers affects
the elasticity of supply.
only the market supply curve.
only the change in price.
only the Law of Supply.
Which is an example of a change in quantity supplied?
Because the market price went up, a producer made 10 more items to sell.
If a crop is damaged in a bad storm, the farmer will have less to offer.
If taxes go up, a business plans to produce less.
If the cost of doing business is high, a producer changes location.
Which statement about elasticity is true?
If a firm adapts quickly to new prices, its supply is likely inelastic.
If a company takes a long time to adjust to production changes, its supply is likely elastic.
If a company can make changes to production quickly, its supply is likely elastic.
If a firm adapts slowly to new prices, its supply is elastic.
What is the main difference between short-run and long-run production periods?
Any change in output in the short run is caused by a change in only one variable input, usually labor.
Short-run production periods always last two weeks. Long-run periods last for a month or more.
Only the number of workers can change in the short run, but in the long run, all inputs are fixed.
A firm can adjust the quantities of all inputs in the short run.
What is one cause of negative marginal returns?
If the firm does not train its workers properly, total output will fall.
If the firm does not hire enough workers, it will not be able to produce enough output.
If the firm fires more than half its workers, it will not be able to produce enough output.
If the firm hires too many workers, they will get in each other's way or otherwise interfere with production, causing total output to fall.
What is the difference between a fixed cost and a variable cost?
A fixed cost does not change when output changes, whereas a variable cost does.
A fixed cost includes all costs associated with production. A variable cost only includes the extra cost of producing one additional unit of production.
A variable cost includes all costs associated with production. A fixed cost only includes the extra cost of producing one additional unit of production.
A fixed cost changes when output changes, whereas a variable cost does not.
Labor and raw materials are usually associated with
Overhead
Variable costs
Fixed costs
Profit-maximizing quantity of output
What is the difference between average revenue and marginal revenue?
The average revenue is all the revenue that a business receives. Marginal revenue is the extra revenue a business receives from the production and sale of one additional unit of output.
The average revenue is simply the average price that every unit of output sells for. Marginal revenue is all the revenue that a business receives.
The average revenue is simply the average price that every unit of output sells for. Marginal revenue is the extra revenue a business receives from the production and sale of one additional unit of output.
The average revenue is all the revenue that a business receives. Marginal revenue is simply the average price that every unit of output sells for
The lowest legal price that can be paid for a product
Neutral
Nonrecourse Loan
Equilibrium Price
Price Floor
The monetary value of a product
Target Price
Price
Surplus
Rationing
System of allocating goods and services without prices
Arbitrary
Rationing
Voluntary
Stabilize
Situation where quantity supplied is less than quantity demanded at a given price
Price Floor
Surplus
Rationing
Shortage
Quantity of output supplied that is exactly equal to the quantity demanded at the equilibrium price
Economic Model
Price Ceiling
Equilibrium Quantity
Surplus
Done or brought about by free choice
Motivated
Arbitrarily
Voluntary
Good Service
Randomly or by chance
Motivated
Arbitrarily
Voluntary
Good Service
Price where quantity supplied equals quantity demanded
Price Balance
Equality
Target Price
Equilibrium Price
The highest legal price that can be charged for a product
Price Ceiling
Price Maximum
Surplus Price
Government Price Max
Situation where quantity supplied is greater than quantity demanded at a given price
Product Ceiling
Shortage
Voluntary
Surplus
To make steady or unchanging
Fluctuate
Stabilize
Equal
Balance
Which of these best describes prices in a market economy?
A signal for consumers to purchase less
A signal for producers to manufacture less
A set of compromises between buyers and sellers
A set of compromises between the government and citizens
What are the causes of price changes most of the time?
Change in demand only
Changes in supply only
Changes in supply and demand
Government policy
Who among the following benefits the most from rent control?
People with children and pets
Tenants in rent-controlled apartments
Owners of rent-controlled apartments
People who perform maintenance and repairs on buildings
In the United States, prices are determined entirely by the actions of buyers and sellers.
True
False
The government sometimes “fixes” prices to achieve a socially desirable goal.
True
False
Price floors and price ceilings keep items from attaining their equilibrium prices.
True
False
The minimum wage is an example of a government price control.
True
False
An equilibrium price is the goal of a price floor or a price ceiling.
True
False
The wage in which the number of workers needed equals the number of workers available
Law of Supply
Labor productivity
Equilibrium Wage
Derived demand
__________ has lead to the extinction of other jobs.
Trade off
politics
Technology
Education
Which is a financial transaction?
minting
loan
interest
debt
Money in either form of banknotes or coins.
cash
value added tax
interest
debt
Which is not a financial transaction?
currency exchange
loan
deposit
debt
In which economic system is the protection of private property rights essential?
Command
Traditional
Market
Socialism
In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)
Command
Socialism
Market
Traditional
Based on the passage, East Germany's government planned to transform its economy from: Click the magnifying glass for a better view.
Traditional to mixed
Command to traditional
Market to mixed
Command to mixed
Which of the following best explains a mixed economy?
Private ownership of the factors of production and regulation of businesses by government
Market exchanges answer all three of the big economic questions
Family customs and traditions determine what and how to produce a good
Government answers all three of the big economic questions
_____________ are a positive incentive for entrepreneurs to start a business despite the risks.
Pride
Wealth
Profits
Being an employer
What does government provide with the revenue it takes in from taxes?
Headaches
Public goods and services
More Congressmen
Greater control of the media
Which of the following is not a function of money?
Store of value
Medium of exchange
Standard of currency
Unit of account
The difference between representative money and fiat money is that
representative money is worth more than fiat money.
fiat money is counted in coins; representative money is counted in paper dollars.
fiat money is more durable than representative money.
representative money is backed by silver or gold, ; fiat money is not.
During times of hyperinflation
people often adopt something other than the official currency to use as money
people hoard the official currency
the purchasing power of the currency increases rapidly
the money supply is decreasing
What type of bank is run by it's members?
Commercial Bank
Credit Union
Paycheck Advance
Retail Bank
Demand deposit account that can keep your money safe, and easily withdraw at any time is called?
Savings Account
Checking Account
Money Market Account
Retirement Account
What type of card allows you to withdraw money you have in your bank account?
Credit Card
Debit Card
Bank Card
ID Card
Money set aside on which interest is paid is called?
Principal
Rate
Time
Interest
a place to keep money safe
bank
school
grocery store
hospital
How do banks make profits?
By charging people interest to borrow money.
By charging people interest to keep their money there.
By charging a fee every time a customer writes a check or uses a debit card.
None of the above - banks are nonprofit institutions
What is the difference between a credit card and a debit card?
A debit card is issued by a bank, a credit card is not.
A debit card can only be used at an ATM, while a credit card can be used to by things at stores or online.
A debit card takes money directly from your checking account,while using a credit card is a form of borrowing
Debit card users must pay interest to banks; credit card users collect interest from banks.
Anything of value
asset
equity
liability
medium of exchange
