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WorksheetsQuiz 1,2 (2022-2023-2)
Total questions: 14
Worksheet time: 8mins
Economics is best defined as the study of
how society manages its scarce resources
how to run a business most profitably
how to predict inflation, unemployment, and stockprices
how the government can stop the harm fromunchecked self-interest
Your opportunity cost of going to a movie is.............
the price of the ticket
the price of the ticket plus the cost of any sodaand popcorn you buy at the theater
the total cash expenditure needed to go to themovie plus the value of your time
zero, as long as you enjoy the movie and considerit a worthwhile use of time and money
A marginal change is one that
is not important for public policy
incrementally alters an existing plan
makes an outcome inefficient
does not influence incentives
Adam Smith’s “invisible hand” refers to
the subtle and often hidden methods that businesses use to profit at consumers’ expense
the ability of free markets to reach desirableoutcomes, despite the self-interest of marketparticipants
the ability of government regulation to benefit consumers, even if the consumers are unaware of theregulations
the way in which producers or consumers inunregulated markets impose costs on innocentbystanders
Governments may intervene in a market economy inorder to
protect property rights
correct a market failure due to externalities
achieve a more equal distribution of income
All of the above
If a nation has high and persistent inflation, the mostlikely explanation is
unions bargaining for excessively high wages
the government imposing excessive levels of taxation
the central bank creating excessive amounts ofmoney
firms using their monopoly power to enforce excessive price hikes
A change in which of the following will NOT shift the demand curve for hamburgers?
the price of hot dogs
the price of hamburgers
the price of hamburger buns
the income of hamburger consumers
An increase in ________ will cause a movement along a given demand curve, which is called a change in________.
supply, demand
supply, quantity demanded
demand, supply
demand, quantity supplied
Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets?
The supply curve shifts to the left
The supply curve shifts to the right
The demand curve shifts to the left
The demand curve shifts to the right
The discovery of a large new reserve of crude oil willshift the ________ curve for gasoline, leading to a________ equilibrium price.
supply, lower
supply, higher
demand, higher
demand, lower
If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods?
Prices and quantities both rise
Prices and quantities both fall
Prices rise and quantities fall
Prices fall and quantities rise
Which of the following might lead to an increase inthe equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold?
an increase in the price of peanut better,a complement to jelly
an increase in the price of Marshmallow Fluff,a substitute for jelly
an increase in the price of grapes, an input into jelly
an increase in consumers’ incomes,as long as jelly is a normal good
(a) is the study of how agents choose to allocate scarce resource and how those choices affect society
__________ ____________ are things that people want, where the quantity that people want exceeds the quantity that is available
(a)
