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WorksheetsECON Chapter 3 Test
Total questions: 48
Worksheet time: 30mins
Name
Class
Date
1.
What will happen to the price of corn if almost no rain falls on corn crops?
a)
The price will increase
b)
The price will decrease
2.
What will happen to the price of teddy bears if puppy dogs become the most popular stuffed toy?
a)
The price will increase
b)
The price will decrease
3.
What will happen to the price of soccer balls if more and more boys and girls are learning to play soccer?
a)
The price will increase
b)
The price will decrease
4.
What will happen to the price of shoes if shoe producers have to pay higher wages to their workers?
a)
The price will increase
b)
The price will decrease
5.
This part of the market determines DEMAND
a)
buyers
b)
sellers
c)
suppliers
d)
store owners
6.
This part of the market determines SUPPLY
a)
buyers
b)
sellers
c)
consumers
d)
us
7.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
8.
When quantity supplied and quantity demanded is equal
a)
surplus
b)
shortage
c)
equilibrium
d)
law of demand
9.
Goods that are bought and used together are
a)
complementary goods
b)
substitute goods
c)
income goods
d)
unrelated goods
10.
Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store become slow. What causes this change?
a)
Prices or availability of substitutes
b)
Prices or availability of complementary goods
c)
Change in the weather or season
d)
Change in the number of buyers
11.
Which of the following is likely to increase the demand for peanut butter?
a)
Fewer children in the population
b)
News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
c)
A big increase in the price of jelly.
d)
A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
12.
Which statement expresses a central idea of how the laws of supply and demand work?
a)
The government sets the prices for goods and services.
b)
Prices are determined by the interaction of producers and consumers.
c)
Consumers alone determine the prices for goods and services.
d)
Technology dictates the prices charged for goods and services.
13.
Which of the following would not shift the supply curve for iphones?
a)
an increase in the price of iphones
b)
a decrease in the number of sellers of iphone
c)
an increase in the price of plastic, an input into the production of iphones
d)
an improvement in the technology used to produce iphones
14.
Goods that are often used together so that consumption of one good tends to enhance consumption of the other are called (a)
15.
(a) is the loss in social surplus that occurs when a market produces an inefficient quantity.
16.
At the existing price, the quantity demanded exceeds the quantity supplied; also called a shortage
(a)
17.
The resources such as labor, materials, and machinery that are used to produce goods and services; also called factors of production
(a)
18.
At the existing price, quantity supplied exceeds the quantity demanded; also called excess supply
(a)
19.
Latin for 'other things being equal'
(a)
20.
What will happen to Kirby Foods (IGA) if a new Dollar General Market comes into El Paso in regards to supply and demand?
a)
IGA prices will go up
b)
IGA prices will stay the same
c)
IGA prices will need to adapt to competition
d)
IGA will go out of business
21.
Command Economy
a)
An economic system in which the government controls a country's economy.
b)
Desires that can be satisfied by consuming a good or service
c)
The principle that people may decide what, when, and how they want to buy and sell
22.
Economics
a)
An economic system in which the government controls a country's economy.
b)
Desires that can be satisfied by consuming a good or service
c)
The study of scarcity and choice
23.
Economic Systems
a)
An economic system in which the government controls a country's economy.
b)
The methods societies use to produce and distribute resources.
c)
The study of scarcity and choice
24.
Factors of Production
a)
A person who starts up and takes on the risk of a business
b)
Land, labor, and capital; the three groups of resources that are used to make all goods and services
c)
The methods societies use to produce and distribute resources.
25.
Free Market Economy
a)
A person who starts up and takes on the risk of a business
b)
An economic system in which resources are primarily owned and controlled by the private sector
c)
Land, labor, and capital; the three groups of resources that are used to make all goods and services
26.
Inputs
a)
An economic system in which resources are primarily owned and controlled by the private sector
b)
People who work to produce goods and services
c)
The specific economic resources used in producing goods and services
27.
Invisible Hand
a)
People who work to produce goods and services
b)
Phrase coined by Adam Smith to refer to the self-regulating nature of a free marketplace.
c)
The specific economic resources used in producing goods and services
28.
Mixed Economy
a)
Market-based economic system with limited government involvement
b)
The additional benefit associated with an action.
c)
The cost added by producing one additional unit of a product or service.
29.
Opportunity Cost
a)
A penalty that discourages a behavior
b)
Basic requirements for human survival
c)
The most desirable alternative given up as the result of a decision
30.
Outputs
a)
A penalty that discourages a behavior
b)
The most desirable alternative given up as the result of a decision
c)
The products and/or services that an organization produces
31.
Scarcity
a)
The limited nature of society's resources
b)
The line on a production possibilities graph that shows the maximum possible output
c)
The value of a particular product compared to the amount of labor needed to make it.
32.
Traditional Economy
a)
An economy consisting of mostly subsistence agriculture.
b)
The development of skills in a specific kind of work; division of labor
c)
The limited nature of society's resources
33.
Wants
a)
An economy consisting of mostly subsistence agriculture.
b)
Desires that can be satisfied by consuming a good or service
c)
The principle that people may decide what, when, and how they want to buy and sell
34.
Attending college is a case where the ________________ exceeds the monetary cost.
a)
A. budget constraint
b)
B. marginal analysis
c)
C. opportunity cost
d)
D. marginal utility
35.
Scarcity implies that:
a)
A. consumers would be willing to purchase the same quantity of a good at a higher price.
b)
B. it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available.
c)
C. at the current market price, consumers are willing to purchase more of a good than suppliers are willing to produce.
d)
D. consumers are too poor to afford the goods and services available.
36.
Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:
a)
A. nothing, because he enjoys playing basketball more than studying.
b)
B. the increase in skill he obtains from playing basketball for that hour.
c)
C. the benefit to his grades from studying for an hour
d)
D. nothing, because he had a free pass into the sports complex to play basketball.
37.
The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern.
a)
A. utility
b)
B. marginal benefit
c)
C. opportunity cost
d)
D. sunk costs
38.
The lesson of __________ is to forget about the money that’s irretrievably gone and instead to focus on the marginal costs and benefits of future options.
a)
A. marginal utility
b)
B. sunk costs
c)
C. marginal analysis
d)
D. budget constraints
39.
The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.
a)
A. consumption
b)
B. marginal analysis
c)
C. diminishing marginal utility
d)
D. utility
40.
In deciding how many hours to work, Beulah will make a choice that maximizes her _______; that is, she will choose according to her preferences for leisure time and income.
a)
A. budget constraint
b)
B. opportunity set
c)
C. utility
d)
D. production possibilities frontier
41.
Scarcity
a)
The limited nature of society's resources
b)
The line on a production possibilities graph that shows the maximum possible output
c)
The value of a particular product compared to the amount of labor needed to make it.
42.
Opportunity Cost
a)
A penalty that discourages a behavior
b)
Basic requirements for human survival
c)
The most desirable alternative given up as the result of a decision
43.
Mixed Economy
a)
Market-based economic system with limited government involvement
b)
The additional benefit associated with an action.
c)
The cost added by producing one additional unit of a product or service.
44.
Invisible Hand
a)
People who work to produce goods and services
b)
Phrase coined by Adam Smith to refer to the self-regulating nature of a free marketplace.
c)
The specific economic resources used in producing goods and services
45.
Free Market Economy
a)
A person who starts up and takes on the risk of a business
b)
An economic system in which resources are primarily owned and controlled by the private sector
c)
Land, labor, and capital; the three groups of resources that are used to make all goods and services
46.
Factors of Production
a)
A person who starts up and takes on the risk of a business
b)
Land, labor, and capital; the three groups of resources that are used to make all goods and services
c)
The methods societies use to produce and distribute resources.
47.
Economic Systems
a)
An economic system in which the government controls a country's economy.
b)
The methods societies use to produce and distribute resources.
c)
The study of scarcity and choice
48.
Economics
a)
An economic system in which the government controls a country's economy.
b)
Desires that can be satisfied by consuming a good or service
c)
The study of scarcity and choice
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