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WorksheetsG9: Econ. Review Quiz: Sections 1-2
Total questions: 17
Worksheet time: 19mins
The diagram shows market demand and supply curves.
Which points show a shortage?
Q1 – Q3
Q3 – Q5
Q2 – Q4
Q1 – Q2
What is the basic economic problem?
recession
scarcity of resources
excess supply of goods and services
lack of profits
Which person makes macroeconomic decisions?
a worker
a bank manager
a shareholder in a firm
a government finance minister
The diagram shows an economy’s production possibility curve (PPC). The economy moves from point X to point Y.
What is the most likely effect of this change?
Different quantities of the goods are produced.
There is an immediate fall in gross domestic product.
More people are employed.
There is an increase in investment.
Which combination of a factor of production (FP) and its factor income (FI) is not correct?
FP: capital
FI: interest
FP: land
FI: rent
FP: enterprise
FI: profit
FP: labor
FI: dividends
What is an example of a macroeconomic aim?
to provide consumers with greater information when buying goods and services
to encourage greater occupational mobility of labor
to create and maintain full employment
to improve efficiency in the manufacturing sector of the economy
The diagram shows a shift in the supply curve for cars in China from S1 to S2
What is the most likely cause of this shift in the supply curve?
an increase in the wages of Chinese car workers
an increase in an indirect tax on petrol in China
a new subsidy given to Chinese car manufacturers
an increase in the price of cars in China
The diagram shows the global market for copper with an equilibrium point of X. Which point represents the new equilibrium after the copper producers’ costs increase and there is rapid global economic growth?
A
B
C
D
In 2018 the UK government introduced a tax on the production of sugary drinks. How would this affect the market for sugary drinks as shown on a demand and supply diagram?
A
B
C
D
In the diagram, suppliers have set the price of a product at PS. Economic theory predicts that the equilibrium price of the product will rise to PE.
What is the reason for this movement in price?
No more of the product can be supplied.
Some consumers are willing to pay higher prices.
Demand for the product will increase.
Suppliers are facing rising costs.
What is demand?
the willingness to buy
the willingness and ability to sell
the willingness and ability to buy
the ability to sell
Define supply.
the willingness and ability to buy
the ability to sell
the willingness buy
the willingness and ability to sell
What is the law of demand?
As demand falls, price rises and vice versa
As price increases, demand decreases and vice versa
As price decreases, demand decreases and vice versa
As demand rises, the price rises as well and vice versa
What is the law of supply?
As price rises, supply rises and vice versa
As supply rises, price rises, and vice versa
As supply increases, price decreases and vice versa
As price decreases, supply increases and vice versa
What is most likely the reason for this change in demand?
a tax was imposed by government on producers
there was an increase in income
there was severe unemployment
no one is buying any products
Children of poor families tend to skip school or not enroll at all. Explain why the graph shows a shortage about this event?
there is demand for schools but since no enrolment, some schools have to close down
there is no demand for schools but schools continue to operate
there is demand for schools but since no enrolment, schools are forced to continue to operate
Schools don't like poor people
Cash benefits by the government were given to poor families to encourage enrollment and attendance of their children in school. Explain how this graph will go back to equilibrium.
With the cash benefits, they can now afford to go to malls and be happy so schools will be happy for them
With the cash benefits, they can now afford to go to schools and schools are encouraged to reopen and charge the original tuition fees
With the cash benefits, they can now keep it as savings, so schools will continue to be closed.
With the cash benefits, they can now afford to open their own schools so with more schools, equilibrium is reached
