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WorksheetsEcon Unit 2 Review
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
When the price of something increases, the quantity demanded ____
a)
increases
b)
remains unchanged
c)
decreases
d)
reverses
2.
A change in quantity demanded is represented by _____
a)
Substitution.
b)
A shift of the demand curve.
c)
Movement along the demand curve.
d)
Complements.
3.
A hungry man is willing to pay a high price for food. After he is no longer hungry, he is not willing to pay the same high price. Which of the following best defines this example?
a)
a complement
b)
unit elasticity
c)
the substitution effect
d)
diminishing marginal utility
4.
2B On a demand curve, movement along the curve, as opposed to a shift in the entire curve, is a result of ___
a)
an increase in demand.
b)
a change in price.
c)
a decrease in demand.
d)
a change in demand.
5.
2B Which would an economist consider a likely complement for coffee?
a)
tea
b)
donuts
c)
chicken
d)
water
6.
2C Why is a demand curve downward sloping?
a)
because quantity demanded increases as price decreases
b)
because of the natural elasticity of the market
c)
because it shows how increasing incentives changes demand
d)
because it reflects the desire, ability, and willingness of consumers
7.
2C Which of these is the best description of a normal supply curve?
a)
Its slope goes down when the diagram is read from left to right
b)
Its slope is completely horizontal.
c)
Its slope goes up when the diagram is read from left to right.
d)
Its slope is mostly horizontal, with occasional vertical fluctuations.
8.
8A Under perfect competition, what sets the equilibrium price in the market?
a)
nonprice competition
b)
supply and demand
c)
the government
d)
a monopoly
9.
8A Which market structure is defined by a single producer?
a)
monopoly
b)
monopolistic competition
c)
oligopoly
d)
pure competition
10.
8B A person who wishes to incorporate a business needs to:
a)
pay the government dividends.
b)
find stockholders.
c)
do all of the above.
d)
file for permission with the government.
11.
8B The government does not try to eliminate all monopolies. Why?
a)
It would be impossible.
b)
The government itself is a monopoly.
c)
Not all monopolies are bad.
d)
There aren't any monopolies anymore.
12.
2. 3B As a result of globalization,
a)
standardized products all over the world are manufactured and shipped from a few industrial nations.
b)
standardized products are manufactured in facilities throughout the world.
c)
workers in manufacturing facilities throughout the world receive high salaries.
d)
workers in manufacturing facilities in industrial nations receive low salaries.
13.
3B Corporations such as Ford Motor Company, Apple, and British Petroleum, which produce and sell products in different countries, are called
a)
globals.
b)
industries.
c)
mega companies.
d)
multinationals.
14.
3B One trend associated with globalization is
a)
a growing economic interdependence among nations.
b)
a growing reliance on the World Bank among nations.
c)
less political stability among nations.
d)
less political cooperation among nations.
15.
3C Under flexible exchange rates, trade deficits tend to correct themselves automatically through _____.
a)
supply and demand
b)
government subsidies
c)
price ceilings
d)
price floors
16.
3C Exchange rates among the currencies of the world change _____.
a)
rarely
b)
constantly
c)
annually
d)
slowly
17.
3A In international trade, comparative advantage means a nation ___.
a)
has a currency at a higher rate in the foreign exchange
b)
can produce a product more efficiently than another nation can.
c)
can produce a product in greater volume than another nation can.
d)
can sell more products domestically, and doesn’t have to depend on exports.
18.
3A Country A can produce more coal than Country B. An economist would say that Country A has ______ over country B.
a)
a comparative advantage
b)
an export advantage
c)
a production possibility advantage
d)
an absolute advantage
19.
10C A major step for the European Union was the introduction of
a)
the euro.
b)
pollution permits.
c)
a free-trade policy with the world.
d)
a free-trade policy with Mexico, Canada, and the United States.
20.
10C Which of the following statements best describes trade between two nations?
a)
It is legally required.
b)
It avoids specialization.
c)
It is mutually beneficial.
d)
It involves low cost for both nations.
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