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WorksheetsYear 11 Economics Revision
Total questions: 100
Worksheet time: 1hrs 13mins
the most frequently occurring value(s) in a set of data
mode
median
shape
range
a statistical measure of data, often the mean or median
mode
measure of central tendency
interquartile range
dot plot
the difference between the highest and lowest values in a set of data
median
range
mode
shape
What is the median of the Math test scores 35, 22, 36, 18, 25, 30, and 15?
15
18
22
25
Julia got the following Final Grades in her 8 subjects: 92, 88, 90, 89, 93, 87, 90, and 91.
What is her General Average?
87
89
90
91
100, 101, 102, 100, 101, 102, 100, 101, 102, 100
Which of the following is not a measure of dispersion?
Range
Mean Deviation
Geometric Mean
Standard Deviation
Which measure is based on all observation?
Mean Deviation
Range
Quartile Deviation
None of the above
In Calculating Standard Deviation, which of the Measure of central tendency is used
Mean
Median
Mode
All the above can be used
If the salary of 10 employees are identical i.e. $4000, then its mean deviation from Mean is
4000
0
1
None of these
Definition of Marginal Utility
the satisfaction from consumption
to total satisfaction from consuming a product
the extra satisfaction from the last unit consumed
the extra consumption from last unit consumed
The definition of the law of diminishing marginal utility
As more units are consumed the marginal utility falls.
As more units are consumed the marginal utility increases.
As price decreases quantity demanded increases.
As price increases consumers are willing to pay more.
The total utility definition states:
The usefulness, benefit or satisfaction a consumer gains from consuming a product.
The satisfaction gained from consuming a quantity of an economic good, measured in utils.
The added consumer satisfaction from consuming a quantity of a good.
The consumer's satisfaction from consuming a quantity of a good.
The relationship between demand and marginal utility is best explained as ...
the marginal utility a person gets from consuming a good determines their demand for the good.
the total utility a person gets from consuming a good determines their demand for the good.
the marginal utility a person gets from consuming a good determines their market demand for the good.
the total utility a person gets from consuming a good determines their market demand for the good.
Total utility is the benefit received from consuming an extra unit of a good.
TRUE
FALSE
If Ann gets 100 units of utility from reading a book and 500 units of utility from playing with her cat, What can we determine about Ann?
She does not enjoy reading books.
She does not enjoy playing with her cat.
She prefers reading a book to playing with her cat.
She prefers playing with her cat to reading a book.
The first four dinner rolls Joan consumes have total utility of 15, 27, 37, and 45 respectively. What is the marginal utility of the 4th dinner roll?
124 units of utility
45 units of utility
11.25 units of utility
8 units of utility
What best reflects the goal of a consumer?
To acquire the largest possible quantity of goods.
To acquire the largest possible variety of goods.
To maximize utility.
To save money.
You made a good decision if:
Marginal cost is greater then marginal benefit
Marginal cost is less than marginal benefit
Marginal benefit is greater then marginal cost
Marginal benefit is less then marginal cost
Total Utility will be greatest when marginal utility equals
0
1
2
3
Consumer equilibrium occurs when ...
they have spent all of their income.
a person consumes quantities of three goods.
a person consumes quantities of two goods.
satisfaction is maximised for a given level of income.
Harry Munkee loves eating bananas. His total utility for for 3 bananas is ?
70
71
72
73
Harry's marginal utility for 2 bananas is ?
23
32
25
26
Consumers will maximize satisfaction when;
Marginal utility is equal to average utility
The price of each good is exactly equal to the price of every other good consumed
The price of each good is exactly equal to the total utility derived from the consumption of every other good
The marginal utility of the last dollar spent on each good is exactly equal to the marginal utility of the last dollar spent on any other good
The substitution effect explains that when the price of a good increases, consumers will consume;
Less of the good because their real incomes are lower after the price increase
More of the more expensive good and less of some other good
Less of the more expensive good and more of some other good
More of the good because their real incomes are lower after the price increase
Which of the following best expresses the law of diminishing marginal utility?
The less a person consumes of a product, the smaller becomes the total utility that he receives from its consumption
The more a person consumes of a product the smaller becomes the total utility that he receives from its consumption
The more a person consumes of a product, the smaller becomes the additional utility that he receives from consuming each additional unit
The less a person consumes of a product, the smaller becomes the additional utility that he receives from consuming each additional unit
Marginal utility refers to;
The additional utility that a consumer derives from consuming one additional unit of a good
The additional product produced as the firm ads one additional unit of an input
The amount of utility divided by the number of units produced
All of the above
Which of the following is true if consuming one unit of good yields 100 utils and consuming the second unit of the good increase satisfaction by 20 utils?
The total utility of consuming two units us 120
The marginal utility if the second unit is 120
The marginal utility of the first unit is 20
The marginal utility of the second unit is 80
Suppose the price of burgers increases from $2 to $3 each. The degree to which the quantity demanded responds to this price increase depends on the
price elasticity of demand.
price elasticity of supply.
income elasticity of demand.
cross elasticity of demand.
The price elasticity of demand is calculated as the absolute value of the
percentage change in quantity demanded divided by the percentage change in price.
percentage change in price divided by the percentage change in quantity demanded.
change in quantity demanded divided by the change in price.
change in price divided by the change in quantity demanded.
The price elasticity of demand can range between
0 to 1
negative infinity and infinity.
zero and infinity.
negative one and one.
If the quantity demanded changes by a relatively small amount for a given change in price, then demand is
perfectly inelastic.
perfectly elastic.
elastic.
inelastic.
A good with a vertical demand curve has a price elasticity of demand that ________ .
is equal to 1
is equal to infinite
is equal to zero
varies between 0 and 1
Demand is price elastic if a
relatively large price increase leads to a relatively small decrease in the quantity demanded.
relatively small price increase leads to a relatively large decrease in the quantity demanded.
price increase leads to a decrease in the quantity demanded.
price increase leads to an increase in the quantity demanded.
The price elasticity of demand when the price of a popsicle increase from $0.30 to $0.50 and the quantity decrease from 25 to 15 is ________.
0
1
0.5
2
The elasticity of supply does NOT depend on
resource substitution possibilities.
the fraction of income spent on the product.
the time elapsed since the price change.
none of the above because all of the factors listed affect the elasticity of supply.
When demand is ________, a decrease in price ________ total revenue.
elastic; decreases
inelastic; decreases
unit elastic; increases
elastic; does not change
movement along the demand curve showing that a different quantity is purchased in response to a change in price
Change in quantity demanded
Change in demand
Change in market equilibrium
Change in supply
We are looking at a shift of the demand curve, either to the left or the the right. (PINET).
Change in quantity demanded
Change in demand
Change in market equilibrium
Change in supply
Which one is not a "change of demand":
Tastes and Prefereces
Prices of related goods
Productivity/Technology
Numbers of Consumers
Mrs. Winch goes to the store, and realizes Colgate is cheaper than Aqua-fresh...she purchases Colgate. This is an example of:
Expectations for the Future
Numbers of Consumers
Prices of Related Goods
Consumer's Income
Rachel just got a raise! she can now buy more pizza on the weekend.
Price of Related Goods
Expectations for the Future
Tastes and Prefereces
Consumer's Income
Low rise jeans are out of style, causing the demand for those jeans to decrease.
Prices of Related goods
Income Effect
Tastes and Prefereces
Expectations for the Future.
What is the ONLY factor that change QD? (quantity demanded)
price
supply
wages
When we SHIFT the entire demand curve, we draw a NEW LINE parallel to the original one.
True
False
What kind of relationship exist between price and quantity demanded?
Inverse
Positive
Propotionate
None of these
Expansion and contraction in demand is caused by
Change in income of the buyer
Change in price of the commodity
Change in price of related goods
Change in taste of the buyer
With an increase in the price of petrol, demand curve of cars
Shifts rightward
Moves upward
Shifts leftward
Moves downward
A movement along the demand curve is due to
Increase in demand
Decrease in demand
Change in price
Change in income
With an increase in income of the consumer the demand of normal goods
Decrease
Increase
Demain same
None of these
If the price of goods x rises and the demand for goods y decreases then the two goods are called
Substitute goods
Complementary goods
Normal goods
Inferior goods
Inferior goods are those whose income effect is
Negative
Positive
Zero
None of these
Cell phone and cell services are
Complementary goods
Substitute goods
Unrelated good
None of these
Define Income Elasticity of Demand
YED measures the degree of responsiveness of quantity demanded for a good to a change in consumer's income, ceteris paribus
YED measures the degree of responsiveness of demand for a good to a change in consumer's income, ceteris paribus
YED measures the degree of responsiveness of consumer's income to a change in quantity demanded for a good, ceteris paribus
YED measures the degree of responsiveness of consumer's income to a change in demand for a good, ceteris paribus
Consumers demand less of this type of goods when their income increases.
Low grade rice
salt
bungalore
furniture
If the income elasticity of market demand is negative, most consumers view the good as:
a luxury good
having many imperfect substitutes.
an inferior good.
a normal good.
Which one is the correct formula for Income Elasticity of demand?
Percentage change in income / Percentage change in quantity demand for a good
Percentage change in quantity demand for a good / Percentage change in income
Percentage change in supplied for a good / Percentage change in income
Percentage change in quantity demand for a good / Percentage change in its price
This car are referring to
Normal Goods
Inferior Goods
Luxury Goods
Compulsary Goods
YED = 0 is referring to
Normal Goods
Inferior Goods
Luxury Goods
Necessity Goods
When YED value is positive and the value is 0.5
Normal Good
Inferior Good
Luxury Good
Necessity Goods
Income elasticity is can be measured by
comparing the percentage change in demanded with the percentage change in income
comparing the percentage change in quantity demanded with the percentage change in price
comparing the percentage change in quantity demanded with the percentage change in income
comparing the percentage change in quantity supply with the percentage change in income
The cross elasticity of demand for substitutes will always be negative because the when the price of product A increases the quantity demanded of product B also increases
TRUE
FALSE
If the cross elasticity of demand for product A is zero then product A and Product B are complements
TRUE
FALSE
If the cross-price elasticity between two commodities is 1.5,
the two goods are luxury goods.
the two goods are complements.
the two goods are substitutes.
the two goods are normal goods.
Why does demand generally become more elastic over time?
People don't change their shopping behavior over time.
Few substitutes become available.
People buy more products over time.
People have time to find substitutes and change behaviors.
If two goods have negative price cross‑elasticities of demand, the goods are:
inferior goods.
luxury goods.
complementary goods:
substitute goods.
What is the relationship between two good if Ex = -2
Substitutes
No relationship
Complements
Complementary goods have:
the same elasticities of demand.
very low price elasticities of demand.
negative cross price elasticities of demand with respect to each other.
positive cross elasticities of demand.with respect to each other
Companies utilize cross-elasticity of demand for all the following EXCEPT:
Expand more branches of their business
Establish what price they should sell their goods for
Ascertain which goods are complements for their products
Ascertain which goods are substitutes for their products
When a price ceiling is imposed in a market:
A surplus results
Sellers of the product are made better off
A shortage results
Quantity supplied is greater than the quantity demanded
At the price, neither a surplus or a shortage exists
equilibrium
consumer surplus
producer's surplus
dead weight
A _______________ is a maximum price sellers are allowed to charge for a good. It's an upper limit for the price.
equilibrium
shortage
surplus
price ceiling
This is the minimum price buyers are required to pay for a good. It's a lower limit for the price.
equilibrium
shortage
price floor
price ceiling
A price ceiling will result in a
shortage
surplus
equilibrium price
equilibrium quantity
A price floor will result in a
shortage
surplus
equilibrium price
equilibrium quantity
Price elasticity of supply is the responsiveness of
demand to a change in price.
price to a change in supply.
quantity supplied to a change in price.
price to a change in supply.
If the supply curve of a product is vertical, PES is equal to
0.
1.
-1.
infinity.
If storage of a good is cheap and readily available, supply is likely to be
relatively elastic.
relatively inelastic.
perfectly inelastic.
perfectly elastic.
