Font size
WorksheetsBasic Economics
Total questions: 74
Worksheet time: 47mins
What is the driving force of economics?
Scarcity
Money
Trade Offs
Economic Systems
Nigeria has which type of economic system?
Command
Capitalist
Mixed
Traditional
Communist countries or countries with dictators often have mainly which type of economic system?
Command
Capitalist
Mixed
Traditional
Who is noted as being the "founding father" of capitalism, as seen in his book The Wealth of Nations?
John Maynard
David Ricardo
Karl Marx
Adam Smith
Which of the following are characteristics of the Nigerian economy? CHOOSE ALL THAT APPLY.
Freedom of Choice
Ability to Own Private Property
Total Government Regulation
Competition
The Law of Supply says that when prices go up, suppliers should -
make more product
make less product
increase cost of production
decrease cost of production
The Law of Demand says when prices go up, people's demand -
goes up
goes down
equilibrium changes
equilibrium remains constant
When demand is high, but resources are limited, what happens to price?
it stays the same
it goes down
it goes up
it doubles itself
Landon wants to mow grass in his neigborhood to earn money to buy a bike. Two other boys his age live on the same street and want to do this, too. What will he have to do to get the lawn mowing jobs?
Offer the same price as the others
Offer a lower price than the others
Offer a high price than the others
how much of a good or service consumers want
demand
spending
producer
scarcity
alternative cost
money cost
production cost
Opportunity Cost
_____________ are things that people make or use to satisfy their needs and wants.
Goods
Services
Producers
Consumers
In which type of economy does the government own property and control resources?
Command
Traditional
Free Market
Mixed
Which type of economy occurs in developing countries and often relies on the barter system?
Command
Free Market
Traditional
Sub-Market
As the supply of something decreases what will happen to the value?
Stay the Same
Increase
Decrease
No one knows
Which motivates businesses and individuals in a free market economy?
Equilibrium
Profit
Demand
Laws
During the summer months why do gas prices tend to go up?
Heat makes cars burn more fuel
People tend to travel more
The days are longer
Students get summer jobs
If the price of printers goes down, what happens in the market for ink cartridges?
Supply increases.
Supply decreases.
Demand increases.
Demand decreases
The price of petrol/gas is expected to increase next week. Then today the demand for petrol/gas will_____
increase
decrease
stay the same
become zero
Which of the following is a likely cause of the shift in the demand curve??
Decrease in income
Increase in Income
Increase in price of substitute
Decrease in price of complement
A situation in which quantity demanded is greater than quantity supplied is
a shortage
a surplus
a price floor
a price ceiling
A situation in which a maximum price is set is referred to as
a shortage
a surplus
a price ceiling
a price floor
Why does Inferior goods have a negative income elasticity of demand?
as consumers' income rises, they buy fewer inferior goods
as consumers' income falls, they buy fewer inferior goods
as consumers' income rises, they buy more inferior goods
Demand is unitary elastic if it is less than 1.0
True
False
What does it mean?
Ed = ∞
Perfectly inelastic demand
Inelastic demand
Unitarily elastic demand
Perfectly elastic demand
factor of production that includes natural resources not created by humans
scarcity
need
land
capital
factor of production that includes tools, equipment, machinery, and factories used in the production of goods and services
scarcity
need
land
capital
where consumers and privately owned businesses answer the three basic economic questions
trade-offs
production possibilities frontier
standard of living
free enterprise economy
What does this symbol represents?
Mean
Variance
Standard deviation
What does this symbol represents?
Mean
Variance
Standard deviation
Determine the standard deviation of the set of data 5, 7, 6, 9, 12, 10, 10, 13.
9
7
2.646
Determine the variance of the set of data 5, 7, 6, 9, 12, 10, 10, 13.
9
7
2.646
The heights of some students are given.
158cm 172cm 164cm
164cm 167cm 159cm
What is the range of the heights?
13cm
14cm
164cm
330cm
5,11,2,12,4,2
Your business rents a building on David Mark Street in Durumi. Every month you pay exactly ₦750 to rent the building. This is an example of a _______
fixed cost
variable cost
average cost
overhead cost
Costs that change based on the amount of goods and services produced.
Total costs
Fixed costs
Variable costs
Costs
Average revenue is equal to ______
Price
Total revenue
Total cost
Turnover
This is the term given to how many products/services a business produces.
Output
Quantity demanded
Commodity
production possibility
Calculate the revenue if a business sells 20,000 units at £2 each
£4000
£40,000
$40,000
£400,000
In the long run...
All inputs are fixed
All input are variable
at least one input is variable and one input is fixes
at most one input is variable and one input is fixed
Which of the following is the least variable input?
Worker
Building
Raw materials
Tools
At the level of 5 labors, average production is __________.
4 units
6 units
7 units
8 units
The marginal production from 3 to 4 labors is _________.
2
7
4
8
Average variable cost (AVC) is
Explicit costs
Variable cost divided by output
The increase in output that arises from an additional unit of input
Costs that do not vary with the quantity of output produced
What does marginal cost (MC) tell us?
Is cost from fixed input
Is variable cost
The increase in output that arises from an additional unit of input
The increase in total cost that arises from producing an additional unit of output
Suppose the first four units of a variable input generates corresponding total outputs of 200, 350, 450, 500. The marginal product of the third unit of input is:
50
100
150
200
In the third of the three stages of production:
the total product curve has an increasing slope
the marginal product curve lies completely below the average product curve.
the marginal product curve has a positive slope
marginal product is negative
The measurable benefit of trade refers to
the gain in potential consumption for both partners that results from specialization and trade.
the gain received by the trading partner with the absolute advantage in both products.
the terms of trade agreed upon by both trading partners.
The greater profits that global firms experience.
Who has the ABSOLUTE advantage in making earrings?
Marie
Isabella
Who has the COMPARATIVE advantage in making earrings?
Marie
Isabella
What do you mean by the supply of goods?
Stock available for sale
Total stock in the warehouse
The actual production of the good
Quantity of the good offered for sale at a particular price per unit of time
Which of the following people are taking part in the economy?
Check all that are true.
Carmen sells her old tablet online.
Shane rents an apartment.
Eric purchases a new dinner table.
Nick buys a new bicycle.
Nick needs to buy groceries for the month. While getting groceries, he sees a new video game that he really wants. As a consumer, what choices could Nick make?
Check all that are true.
buy groceries from a cheaper producer to have money left over for the video game
wait to see if another store has the video game for sale at a lower price
do not buy the groceries and get the video game
buy the groceries and purchase a cheaper video game
The factors of production include:
Check all that are true.
capital resources
natural resources
human resources
factory resources
Each day you have $5 for lunch. Today, you decide to save $2 and buy the chicken salad tomorrow for 6.50. How is the money being used in this case?
As a unit of accounting
As a store of value
As a medium of exchange
As an indicator of debt
As a buyer, which market structure would be worst for you?
Pure competition
Oligopoly
Monopoly
Monopolistic Competiton
When money is used to compare the value of different products it is used:
As a store of value
As a medium of exchange
As an indicator of debt
As a unit of accounting
Which of the following is NOT a part of pure competition?
No seller or buyer has control of the market
Buyers are familiar with the product
Barriers to market entry exist
Many buyers and sellers
What is the main purpose of a market?
To provide a place for buyers to spend time
To allow for the exchange of products
To provide jobs for sellers
To provide a method to raise government taxes
Bartering is defined as:
An object used to pay for a product
The value placed on a product
Taking a product with the promise to return it
Trading a product for another product
Which market structure requires a large number of suppliers?
Monopoly
Oligopoly
Pure Competition
Which of the following is NOT a part of pure competition?
No seller or buyer has control of the market
Buyers are familiar with the product
Barriers to market entry exist
Many buyers and sellers
