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MHRS Intro to Business - Economics

Total questions: 25

Worksheet time: 20mins

Name
Class
Date
1.

The 5 types of economic utilities are Time Utility, Place Utility, Form Utility, Possession Utility, and Information Utility

a)

True

b)

False

2.
What type of business did the Sherman Antitrust Act try to break up?
a)

Monopolies

b)

Small Business

c)

Meat Packaging

d)

Joint-Stock Companies

3.

This market structure has the least competition

a)

Oligopoly

b)

Monopoly

c)

Termopoly

d)

Hetermopoly

4.

If there is more supply than there is demand--what can happen?

a)

The price doubles.

b)

The products/goods become more expensive!

c)

The product becomes harder to find in stores.

d)

The product can become cheaper/less expensive

5.
Which type of economy is based on traditions and beliefs?
a)
Command
b)
Market
c)
Traditional
d)
Mixed
6.
If you choose an apple instead of a banana, the banana is the opportunity cost.
a)
True
b)
False
7.
Convenience stores open 24 hours a day usually provide both time and place utility. 
a)
True
b)
False
8.

The market for automobiles is an oligopoly

a)

True

b)

False

9.

Suppose that the market for coats is described as follows: What is the equilibrium price of coats?

a)

120

b)

100

c)

80

d)

60

10.

When demand increases, the equilibrium price and quantity supplied will both

a)

increase

b)

decrease

c)

stay the same

11.

If there is more demand than there is supply, what will happen?

a)

The product/goods becomes more expensive.

b)

Things for free!

c)

The prices come down!

d)

Buy-one-get-one-free!

12.

Refer to Graph 4-5. According to the graph, what are the equilibrium price and quantity?

a)

$7, 20.

b)

$7, 60.

c)

$5, 40.

d)

$3, 60.

13.

Interest rate is

a)

The price of goods and services

b)

Price of money - tells you how high the cost of borrowing is, or high the rewards are for saving.

c)

The price you have to pay when you want to buy sth cash

d)

Not very important number you will see when borrowing money

14.
Does increasing the money supply cause inflation or deflation?
a)
Inflation
b)
Deflation
15.

Many companies selling similar (not identical) products

a)

Natural Monopoly

b)

Proprietorship

c)

Government Cooperative

d)

Monopolistic Competition

16.
What will probably happen if something people want to buy is scarce?
a)
The price will go up.
b)
The price will go down.
c)
You will be able to get it for free.
17.
Offering auto leases rather than requiring customers to pay the full purchase price provides possession utility. 
a)
True
b)
False
18.

Which of the following industries is an example of a monopoly?

a)

utilities/water

b)

departments stores

c)

auto industry

d)

commercial airlines

19.
a choice between two things that cannot be had at the same time
a)
opportunity cost
b)
opportunity costs are the opposite of trade offs
c)
trade offs
20.

What type of economy does the United States have?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

21.

The law of DEMAND says that ________

a)

The lower the price, the greater the demand.

b)

The higher the price, the lower the demand.

c)

The higher the price, the higher the demand.

d)

The lower the price, the lower the demand.

22.
Which situation is most likely to lead to the lowest prices?
a)

There is only one producer making the good.

b)

Businesses secretly agree to share their profits.

c)

Competition between businesses is prohibited.

d)

Several producers compete to sell goods to the public.

23.

What are three causes of Inflation?

a)

Supply Chain (Lack of goods available)

b)

Overspending

c)

Federal Reserve (interest rate is too low)

d)

Gas Prices

24.

There are many fast food franchises that sell hamburgers. Each one has its own flagship hamburger product that distinguishes itself amongst the competition.

a)

monopoly

b)

monopolistic competition

c)

oligolpoly

d)

perfect competition

25.

The Law of Supply says that when prices go up, supply does what?

a)

goes up

b)

stays the same

c)

goes down

d)

goes away