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WorksheetsUnit 1: Basic Economics Review
Total questions: 20
Worksheet time: 10mins
How can you increase your human capital?
I can get more training and certifications that employers are looking for
I can ask my employer for a pay raise
I can quit my job and find another job that pays less
Which of the following is an example of mass production?
Chic-Fil-A makes all of their chicken nuggets by hand, but diners have to wait longer for their order
McDonald's only has 4 shapes of Chicken McNuggets to make producing them in a factory much quicker
Subway has one employee who cuts bread, another employee who adds veggies and meat, and another employee who rings customers up at the cash register
A city has decided to build a new park. What is the opportunity cost of the new park?
The time it will take workers to build the park, pay for their health insurance and wages, the loss of fun experience by children when the park is closed for renovations
There is not opportunity cost because city parks are a public good from which everyone benefits
Anything the city has given up in exchange for building the park, such as other things that could build on the land or other ways to spend the money
What is the quantity demanded with the price is $4?
6
12
13
16
What is the price when the quantity supplied is 12?
$4
$8
$9
$12
Which of the following is true about the graph?
There has been an increase in demand
There has been a decrease in demand
There has been an increase in supply
There has been a decrease in supply
Which situation is represented by the line where the price is $14?
shortage
surplus
equilibrium
scarcity
What is the amount of the SHORTAGE at the given price represented in the graph (the difference between the quantity demanded and the quantity supplied)?
3
4
15
11
14
What is the amount of the SURPLUS at the given price represented in the graph (the difference between the quantity demanded and the quantity supplied)?
3
4
15
11
14
According to Mrs. Presnell's preferences for pizza described in the prompt, what does she consider Domino's pizza and Papa Johns pizza to be?
substitute goods
complementary goods
capital goods
services
Mrs. Presnell has looked at both pizza apps and has found the Papa Johns pizza is more affordable. Which of the following is true about her demand for Domino's and Papa Johns pizza?
Her demand for Domino's pizza will decrease and her demand for Papa Johns pizza will increase.
Her demand for Domino's pizza will decrease and her demand for Papa Johns pizza will decrease as well.
Her demand for Domino's pizza will increase and her demand for Papa Johns pizza will decrease.
Her demand for Domino's pizza will increase and her demand for Papa John's pizza will decrease as well.
Available resources will never be enough to satisfy all human needs and wants. This basic problem of economics leads to which outcome?
Inflation expands purchasing power.
Workers earn more through overtime pay.
Scarcity requires people to make choices.
Personal expenses increase on an annual basis.
Which statement best supports the shift demonstrated in this graph?
A decrease in the price of frozen yogurt increases the supply of ice cream.
An increase in the price of sugar reduces the supply of ice cream.
A decrease in the price of dairy products increases the supply of ice cream.
An increase in the price of frozen yogurt decreases the supply of ice cream.
During periods of extremely high crop yields, the U. S. government pays farmers to withhold their products from the market. What is the purpose of this economic subsidy?
to keep food prices more stable and price competitive
to make farmers use crops for animal feed
to encourage farmers to consider other careers
to allow market forces to improve the cost of living
Suppose a severe drought affects the tea crop in a major tea-producing country, leading to a significant decrease in tea supply. What would happen to the price of tea?
It would increase
It would decrease
It would stay the same
Which of the following scenarios occur in the FACTOR Market of the circular flow model? Check all that apply!
Mrs. Presnell buys breakfast from Starbucks.
Apple decides to hire 100 new software developers.
In an effort to attract new hires, Wendy’s is raising their starting hourly wage to $15/hr.
A used book store has a 50% off sale to try to clear out inventory.
An apple farmer regularly sold a portion of his crop at a local farmer's market once each month. Most Saturdays, the farmer charged $1.50 per pound of apples. Two months in a row, the farmer sold all of the apples within a few hours. The next month, the farmer returned to the market, and priced his apples for $3.00 per pound. However, the farmer failed to sell all of his apples and was forced to bring many of them home.
Which principle of economics does the passage BEST illustrate?
the law of demand, which states that as a product’s price increases, demand for the product decreases
the law of supply, which states that as a product’s price increases, demand for the product increases
the law of demand, which states that as a product’s price increases, demand for the product increases
the law of supply, which states that as a product’s price increases, demand for the product decreases
Fresh cherries have a growing season from June through August. In some years the conditions are perfect, causing the harvest to be twice what is normally available. How would an increase in the supply of cherries most likely affect the price?
A surplus of cherries would increase prices.
A surplus of cherries would reduce prices.
Prices would likely decrease until sales increased.
Prices would likely increase until demand decreased.
How would a global scarcity of raw cocoa (an ingredient in chocolate) affect the retail price of candy bars in North Carolina?
Manufacturers would have to pay more to find and buy cocoa, and then they would have to raise the price of candy bars sold to cover those increased costs.
Manufacturers would pay more for cocoa, but would keep the cost of the finished candy bars the same since demand for candy bars would be down.
Candy bar prices would go down since manufacturers would need to keep customers happy with fewer bars available.
Candy bar prices would stay the same for consumers, but there would be fewer candy bars for people to buy.
A company introduces a new sports drink to the market. Once the product is released, a famous athlete endorses it. She frequently stars in commercials and advertisements for the drink. Demand for this product then quickly exceeds supply.
Based on the text, how would the rise in demand for the sports drink most likely affect the quantity produced?
The quantity produced would likely increase, because the company needs to increase the supply in order to lower the selling cost as much as possible.
The quantity produced would likely decrease, because the company needs to reduce the supply in order to attain the equilibrium price.
The quantity produced would likely decrease, because the company needs to reduce the supply to make the maximum profit.
. The quantity produced would likely increase, because the company needs to increase the supply to meet consumer demand.
