Free Printable Year 11 Easter Term Revision Book Economics

1.

What is the definition of the economic term Opportunity Cost?

a)

the value of the next best alternative that is given up due to the choice you made

b)

The price you pay to purchase something

c)

The benefit you gain by making a decision

d)

The amount of debt you take on by making a decision

2.

What does point B represent?

a)

Production at greater than the country's minimum potential

b)

Production is less than the country's minimum potential

c)

Production is greater than the country's maximum potential

d)

Production at the country's maximum potential

3.

What does point Y represent on the PPC?

a)

Efficiency

b)

Unattainable / impossible

c)

Inefficency

d)

Nothing

4.

What is the Opportunity Cost of moving from C to A? (Think in the terms of what do we have to forgo in the process.)

(a)

5.

What does PPC show? Select Multiple options.

a)

Describes the production of only two products in economy.

b)

It explains the production when there is full and efficient utilisation all resources in economy

c)

It explains the consumption pattern in economy

d)

It is the combination of all possible output points of two goods given that technology and resources are fixed.

6.

Which of the following are the choices in case the technology is fixed and all resources are efficiently employed. Choose the correct option/s.

a)

G

b)

C

c)

A

d)

E

e)

B

7.

Which coordinate(s) is/are inefficient to produce both products? Choose the correct option/s.

a)

B

b)

F

c)

G

d)

E

8.

Which scenario contributes towards the shifting of the curve in the picture above?

a)

When a country is struck by a natural disaster, natural resources are either exhausted or reduced due to the incident.

b)

Huge reduction in Construction Expenses and equipment manufacturing

c)

Economic decline due to Covid 19

d)

None of the above

9.

The following diagram shows the production possibility frontier for an economy that produces bread and honey.

If the economy is initially at point W, then the opportunity cost of moving to point X is

a)

6 units of honey.

b)

8 units of honey.

c)

12 units of bread.

d)

23 units of bread.

10.

The table shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility?

a)

5 pairs of shoes and 28 pizzas

b)

3 pairs of shoes and 23 pizzas

c)

2 pairs of shoes and 20 pizzas

d)

4 pairs of shoes and 15 pizzas

11.

What does the red line represent?

a)

Fixed Costs

b)

Variable Costs

c)

Total Costs

d)

Direct Costs

12.

What does the red line represent?

a)

Fixed Costs

b)

Variable Costs

c)

Total Costs

d)

Indirect Costs

13.

What does the red line represent?

a)

Fixed Costs

b)

Variable Costs

c)

Total Costs

d)

Total Revenue

14.

Match the following

a)

Revenue

1.

Q x P

b)

Total Costs

2.

FC + VC

c)

Profit

3.

R - TC

d)

Per Unit Cost

4.

FC + VC / Q

15.

Profit is the amount of money that a business gets to keep after (a) have been subtracted from (b)

Choose from the below words

TC

R

FC

VC

16.

The income that a firm gets from any of its specific business activities.

a)

Revenue Stream

b)

Profit

c)

Per Unit Income

d)

Indirect Income

17.

What is paid by the business for resources, materials, labor - any amount spent by the firm to create or get something of value.

a)

Costs

b)

Per Unit Costs

c)

Opportunity costs

d)

Start up Costs

18.

Match the following

a)

Labor costs

1.

Costs of physical or mental effort

b)

Capital Costs

2.

The cost of a good that is used by firm to produce other goods

c)

Transportation costs

3.

Costs incurred when getting a firm's products to consumers

d)

Production costs

4.

Costs incurred to manufacture goods or services

e)

Running Costs

5.

Costs incurred from day to day operations

19.

(a) costs are any benefits that a firm misses out on by choosing another option. (b) costs are the costs of missing out on the alternative option PLUS the (c) cost of the choice that was made.

Choose from the below words

Opportunity

True

Actual

Indirect

20.

Costs that are specifically related to an individual project or the output of a particular product.

a)

Indirect Costs

b)

Direct Costs

c)

Total Costs

d)

None of the answers are correct

21.

Costs that cannot be clearly traced to the production or sale of any single product.

a)

Direct Costs

b)

Indirect Costs

c)

Variable Costs

d)

Total Costs

22.

Another name for Indirect Costs:

a)

Capital Costs

b)

Running Costs

c)

Overheads

d)

None of the answers are correct

23.

CMR Ltd sells each product it produces for $10 each and has average variable costs of $4 per unit. CMR Ltd’s Fixed costs are $5,000 per month and the monthly sales volume is 1,500 units. Calculate the profit per month for CMR Ltd.

24.

Provident is a manufacturer of hammers. They have monthly fixed costs of $3,000 and unit variable costs of $2. Its current level of demand is 3,000 units each month. The average unit price is $6. Calculate the firm’s current average costs each month.

25.

A firm's fixed costs are $100,000 and variable costs are $50,000. If the firm sells 300 units, what are the average costs per unit?

26.

This is the term given to how many products/services a business produces.

a)

Output

b)

Cost

c)

Fixed Cost

d)

Variable cost

27.

The things a business has to pay for in order to start-up and operate on a daily basis.

a)

Output

b)

Costs

c)

Profit

d)

Revenue

28.

Costs that do not change depending on output

a)

Variable costs

b)

Fixed costs

c)

Total costs

d)

Output

29.

These are the costs that change based on output.

a)

Fixed costs

b)

Variable costs

c)

Output

30.

Rent is...

a)

variable cost

b)

fixed cost

c)

total cost

31.

Advertising is...

a)

output

b)

fixed cost

c)

variable cost

32.

Raw materials are...

a)

fixed cost

b)

variable cost

33.

Insurance is...

a)

fixed cost

b)

variable cost

34.

Salaries are...

a)

fixed cost

b)

variable cost

35.

Loan repayment is...

a)

fixed cost

b)

variable cost

36.

Packaging is...

a)

fixed cost

b)

variable cost

37.

Wages are...

a)

fixed cost

b)

variable cost

38.

Utilities are...

a)

fixed cost

b)

variable cost

39.

All the fixed costs added together with all the variable costs.

a)

output

b)

fixed costs

c)

variable costs

d)

total costs

40.

The formula for total costs is:

a)

fixed costs+variable costs= total costs

b)

output+fixed costs=total costs

c)

output+variable costs=total costs

41.

Revenue is...

a)

Sales revenue – total costs

b)

Selling price x number of units sold

c)

Fixed costs + variable costs

d)

cost that is independent of output

42.

Profit/Loss...

a)

Sales revenue – total costs

b)

Selling price x number of units sold

43.

Revenue =

a)

Costs - Profit

b)

Costs + Profit

c)

Costs x profit

d)

Costs / Profit

44.

When MR is zero, then,

a)

TR is minimum

b)

TR is 0

c)

TR is maximum

d)

TR is equal to MR

45.

Average revenue is equal to

a)

Price

b)

Total revenue

c)

Total cost

46.

Total revenue curve in perfect market is

a)

Upward sloping

b)

Downward sloping

c)

Both

47.

Which of the following statements is appropriate in case of monopoly?

a)

AR curve slopes upward while MR curve slopes downward

b)

Slopes of both AR and MR curves is upwards

c)

Slope of both AR & MR curve is downwards & MR curve is below AR curve

d)

Slope of both AR & MR curve is downwards & MR curve is above AR curve

48.

Under perfect competition:

a)

MR curve is below AR curve

b)

Price = AR = MR

c)

AR remains constant

d)

AR is zero

49.

When a firm is able to sell more quantity of output at the same price, then:

a)

AR>MR

b)

AR=MR

c)

AR<MR

d)

none of these

50.

Write T or F with a reason: AR = 0, when TR is maximum

4 lines

51.

Write T or F with reason: Under perfect competition, AR & MR curves tend to slope downwards

4 lines

52.

A balloon seller has decided that he will sell all his balloons at a fixed price of Rs.10/- each. In such a case, TR curve will be

a)

horizontal straight line parallel to x axis

b)

Vertical straight line parallel to Y axis

c)

Positively sloped straight line passing from the point of origin

d)

Downward sloping straight line

53.

Which of the following is the best definition of REVENUE?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has LEFT over after paying for their costs.

c)

The total amount of money a business spends.

d)

The amount of money a business loses every month.

54.

Which of the following is the best definition of PROFIT?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has left over after paying for their costs.

c)

The total amount of money a business spends.

55.

Which of the following is the best definition of COSTS?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has left over after paying for materials.

c)

The total amount of money a business spends.

56.

Which of the following is the equation for figuring out PROFIT?

a)

Profit = Revenue - Cost

b)

Profit = Cost - Revenue

c)

Revenue = Profit - Cost

d)

Costs = Profit - Revenue

57.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total REVENUE?

a)

$25

b)

$225

c)

$375

d)

$750

58.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total COST?

a)

$25

b)

$225

c)

$375

d)

$750

59.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total PROFIT?

a)

$25

b)

$225

c)

$375

d)

$750

60.

Your business rents a building on Main Street in Cedar Falls. Every month you pay exactly $750 to rent the building. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

61.

If you own a home, you must pay for electricity you use. The amount you pay changes every month depending on how much you use. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

62.

You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses. This is a...

a)

FIXED cost.

b)

VARIABLE cost.

63.

You own a lawn-care business and you have two employees. You pay these employees a salary meaning you pay each of these workers $900 every month no matter how much they work. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

64.

You have a straight-talk cell phone plan. This means that your cell phone bill is always changing depending on how many texts you send, how much internet you use, and how many calls you make. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

65.

You have just bought a new car for your 16th birthday. However, you didn't have enough money to pay for the whole car so you took out a loan. Now, every month you must pay exactly $100 for a loan on your car. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

66.

Eric wants to start being an Uber driver in the Waterloo/Cedar Falls area. Eric knows that he can make $30 per Uber ride he gives. Eric owns his own car, so his only expense is to pay $5 in gas for every ride he gives. Eric gives 15 rides this week, his REVENUE for the week will be...

a)

$30

b)

$75

c)

$375

d)

$450

67.

Eric wants to start being an Uber driver in the Waterloo/Cedar Falls area. Eric knows that he can make $30 per Uber ride he gives. Eric owns his own car, so his only expense is to pay $5 in gas for every ride he gives. Eric gives 15 rides this week, his COSTS for the week will be...

a)

$30

b)

$75

c)

$375

d)

$450

68.

Eric wants to start being an Uber driver in the Waterloo/Cedar Falls area. Eric knows that he can make $30 per Uber ride he gives. Eric owns his own car, so his only expense is to pay $5 in gas for every ride he gives. Eric gives 15 rides this week, his PROFIT for the week will be...

a)

$30

b)

$75

c)

$375

d)

$450

69.

Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's REVENUE over the summer?

a)

$150

b)

$200

c)

$300

d)

$500

70.

Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's COSTS over the summer?

a)

$150

b)

$200

c)

$300

d)

$500

71.

Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's PROFIT over the summer?

a)

$150

b)

$200

c)

$300

d)

$500

72.

A ____ economy is an economic system in which people, families, clans, or tribes produce and distribute goods according to customs.

a)

command

b)

market

c)

traditional

73.

A ____ economy is an economic system in which the government plans and makes all economic decisions.

a)

traditional

b)

market

c)

command

74.

A ____ economy is an economic system in which individual choice and voluntary exchange without government regulations direct economic decisions.

a)

traditional

b)

market

c)

command

75.

Adam Smith's The Wealth of Nations (1776) describes the benefits of a _____ economic system.

a)

command

b)

traditional

c)

market

76.

In 1949, Albert Einstein wrote a long essay defending and promoting the economic system of _______.

a)

socialism

b)

communism

c)

capitalism

d)

authoritarianism

77.

A centrally-planned economy is an example of a ____ economy.

a)

command

b)

market

c)

traditional

78.

Socialism and communism are examples of _____ economies.

a)

command

b)

market

c)

traditional

79.

The Communist Manifesto was written in 1848 by Friedrich Engels and ______.

a)

Vladimir Lenin

b)

Fidel Castro

c)

Joseph Stalin

d)

Karl Marx

80.

____ is an economic system in which the government owns some of the industries (centrally planned) and other industries are privately owned.

a)

capitalism

b)

socialism

c)

communism

81.

In a _____ economic system, the government owns ALL of the factors of production.

a)

communism

b)

capitalism

c)

socialism

82.

According to Karl Marx, tensions between workers and owners was inevitable in a capitalist system. This is because factory owners, according to Marx, look at ____ as just another commodity that could be bought and it was in the interest of greater profits to keep wages low.

a)

labor

b)

machines

c)

healthcare

d)

markets

83.

_____ is an economic system based on private ownership of factors of production.

a)

capitalism

b)

socialism

c)

communism

84.

Laissez-faire is a French term loosely meaning "leave things alone" that means the government should ______.

a)

not interfere in the economy at all

b)

regulate the economy when needed

c)

strictly regulate the economy

d)

be lazy at the fair

85.

Capitalism and market economies are characterized by the concept of _______, which means fair prices naturally set themselves due to multiple people/businesses producing the same product/service.

a)

profit

b)

competition

c)

exchange

86.

Capitalism and market economies are also characterized by ____, which is the financial gain that a seller makes from a business transcation.

a)

taxes

b)

competition

c)

profit

d)

exchange

87.

_______ is the concept in a market economy (capitalism) that a person will naturally concentrate their efforts in the economy on ways in which they have advantages or skills.

a)

Sovereignty

b)

Consumerism

c)

Specialization

d)

Voluntary Exchange

88.

This is called the _____.

a)

Production Possibilities Chart

b)

Circular Flow Model

c)

Free Market Table

d)

Capitalism Model Graph

89.

An advantage of the market economy is that it ______.

a)

provides more economic freedom and choice as well as profit as an incentive

b)

provides essential public goods such as healthcare and national defense

c)

spreads economic wealth relatively equally

90.

Most economies in the world today are a _______ economy.

a)

capitalist

b)

communist

c)

mixed

d)

free market

91.

Workers will be more willing to work in an industry if: (multiple correct answers)

a)

overtime is available.

b)

they place a high value on leisure time.

c)

there are opportunities to advance.

d)

there are lots of training schemes on offer.

92.

The demand for labour in an industry has decreased. This could be because

a)

The economy has entered a recession.

b)

The economy is recovering from a recession.

c)

The price of capital has risen.

d)

The price of capital has fallen.

e)

The wage rate in substitute occupations has fallen.

93.

An oligopoly market is more likely to be collusive if: (multiple correct answers)

a)

there is a large number of firms.

b)

firms have similar costs.

c)

there is high degree of consumer inertia.

d)

new entry is possible.

e)

there is an effective competition policy.

94.

The demand for labour is said to be

a)

Derived

b)

in excess of supply

c)

Infinite

d)

Direct

95.

Which statement about the supply of labour is the most accurate

a)

Trade unions only seek to raise the wages of their members

b)

The supply curve of labour of an economy can be affected by the migration policy of the country

c)

The supply of an individual unit of labour slopes upward continuously

d)

The supply of skilled is not greatly affected by barriers to entry into the market

96.

A monopsonist is

a)

A single supplier to the market

b)

A supplier of labour in a competitive market

c)

A monopolist in the labour market

d)

A single buyer in a market

97.

As the wage rate increases the quantity __________ ____ labour increases.

a)

supplied of

b)

demanded for

98.

As the wage rate decreases the quantity __________ ____ labour increases.

a)

supplied of

b)

demanded for

99.

What is a trade union?

a)

a business organisation in which all workers share ownership

b)

an area where there are no barriers to trade

c)

an organisation of employers from an industry

d)

an organisation that represents the interests of workers

100.

What could affect the size of the labour force in an economy?

a)

the existence of a trade union

b)

the government’s immigration policy

c)

the quality of university graduates

d)

the ratio of male to female employees

101.

What might cause an increase in the earnings of a doctor in a government health service?

a)

an increasing number of doctors graduate from university each year

b)

an increasing number of people need health care

c)

the government spends less on the nation’s health services

d)

the population becomes more aware of healthy eating

102.

The demand for labour is a 'derived demand', meaning that ...

a)

the demand for labour is dependent on the supply of the inputs in the production process

b)

the demand for labour is completely independent of the demand for the product

c)

the demand for labour is dependent upon the demand for whatever the labour produces

d)

the demand for labour is greater than the demand for the product that the labour makes

103.

All of the following are likely to increase the supply of labour EXCEPT:

a)

an increase in migration

b)

an increase in the retirement age

c)

an increase in the school leaving age

d)

an increase in the female working population

104.

The demand for labour is said be

a)

Derived

b)

Infinite

c)

Direct

d)

Elastic

105.

Demand for labour will shift outwards if: (select all that apply)

a)

there is a boom in the economy

b)

if there is a recession

c)

if demand for goods and service increases

d)

business confidence rises

106.

What is a trade union?

a)

a business organisation in which all workers share ownership

b)

an area where there are no barriers to trade

c)

an organisation of employers from an industry

d)

an organisation that represents the interests of workers

107.

What is most likely to increase the occupational mobility of labour?

a)

building more houses

b)

increased spending on re-training schemes

c)

increased total government spending

d)

increasing the information on job availability

108.

What is the most important factor that affects how much a family saves?

a)

the income of the family

b)

the level of taxation

c)

the rate of inflation

d)

the reliability of banks

109.

What could affect the size of the labour force in an economy?

a)

the existence of a trade union

b)

the government’s immigration policy

c)

the quality of university graduates

d)

the ratio of male to female employees

110.

When is a trade union likely to have more power to increase its members’ wages?

a)

When imports are increasing

b)

when labour supply is increasing

c)

when output is increasing

d)

when unemployment is increasing

111.

All of the following are essential characteristics of a perfectly competitive industry EXCEPT:

a)

All products produced by the firms in the industry are homogeneous.

b)

All firms in the industry are price takers.

c)

Price is equal to marginal revenue for every firm in the industry.

d)

There are barriers to entry into and exit from the industry.

112.

Perfect competition is best described as a market with

a)

few firms producing essentially the same product

b)

many firms producing essentially the same product

c)

many firms producing very different products

d)

few firms producing very different products

113.

In a perfectly competitive market, a firm

a)

commands a large share of a very small market

b)

can only control how much it decides to produce at the prevailing market price

c)

has some market power due to high barriers to entry into the market

d)

can influence demand across the market through advertising

114.

Total Revenue (minus) Explicit and Implicit cost =

a)

Accounting Profit

b)

Economic Profit

c)

Economic Cost

d)

Total Profit

115.

All of the following are essential characteristics of a perfectly competitive industry EXCEPT:

a)

All products produced by the firms in the industry are homogeneous.

b)

All firms in the industry are price takers.

c)

Price is equal to marginal revenue for every firm in the industry.

d)

There are barriers to entry into and exit from the industry.

116.

Perfect competition is best described as a market with

a)

few firms producing essentially the same product

b)

many firms producing essentially the same product

c)

many firms producing very different products

d)

few firms producing very different products

117.

In a perfectly competitive market, a firm

a)

commands a large share of a very small market

b)

can only control how much it decides to produce at the prevailing market price

c)

has some market power due to high barriers to entry into the market

d)

can influence demand across the market through advertising

118.

The demand curve for a perfectly competitive firm is:

a)

perfectly inelastic at the market quantity

b)

downward sloping just like the industry demand curve

c)

perfectly elastic at the market price

d)

relatively but not perfectly elastic

119.

Which of the following indicates that a perfectly competitive firm is in long run equilibrium?

a)

Price equals marginal cost

b)

Price equals average revenue

c)

Price equals marginal cost, which equals average total cost

d)

Price equals average revenue, which equals marginal revenue

e)

Price equals average fixed cost

120.

The nature of a product under conditions of monopolistic competition is …?

a)

Homogenous

b)

Differentiated

c)

Static

d)

Environmental friendly

121.

A market structure where only a few sellers operate is …?

a)

Perfect market

b)

Monopoly

c)

Perfect competition

d)

Oligopoly

122.

What are the main characteristics of oligopoly?

a)

Few firms, independent, high barriers of entry

b)

Few firms, interdependent, high barriers of entry

c)

Many firms, interdependent, low barriers of entry

d)

Many firm, independent, low barriers of entry

123.

In a normally functioning monopoly, if the firm's total revenue is falling, it marginal revenue must be

a)

positive

b)

negative

c)

zero

d)

greater than TR

124.

Market is

a)

place where buyers meet sellers

b)

Mandi /bazar

c)

Is a situation where optimum customers meet optimum sellers

d)

online market

125.

Perfect competitive market is

a)

price taker

b)

huge no. of buyer and huge no.f sellers

c)

single seller and single buyer

d)

marginal revenue is more than marginal cost

126.

perfect market has

a)

homogeneous product

b)

heterogeneous goods

c)

special goods

d)

only industrial goods

127.

from the following ________________________market is an example of perfect competitive market .

a)

vegetable market

b)

fruit market

c)

panipuri market

d)

All the above

128.

_______________________ is a type of monopoly market .

a)

Railways

b)

postal service

c)

Reserve bank of India

d)

All the above

129.

Duopoly is a type of

a)

perfect competitive market

b)

monopolistic competition

c)

monopoly market

d)

oligopoly market

130.

oligopoly is a market which has

a)

few large firms

b)

huge number of sellers

c)

limited product to be sold

d)

firms with huge usp

131.

Monopolistic competition means

a)

its features are similar to oligopoly market

b)

its features are similar to imperfect market

c)

its features are similar to monopoly market

d)

its features are similar to duopoly market

132.

oligopsony has

a)

huge buyers

b)

a few buyers

c)

specified buyers

d)

single buyers

133.

______________is a factor to determine type of market

a)

income of consumer

b)

quantity of goods produced

c)

size of business firm

d)

freedom of entry and exit of the firm

134.

there is absence of transportation cost in

a)

monopolistic competitive market

b)

monopsony

c)

oligopsony

d)

perfect competitive market

135.

They are known as price takers

a)

Monopoly market

b)

perfect market

c)

imperfect market

d)

duopoly

Year 11 Easter Term Revision Book Economics

Total questions: 135

Worksheet time: 2hrs 15mins