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Unit 1 Microeconomics

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

You are a student studying for your final exams. One of your subjects is economics. How would you describe this subject to your friend who is not familiar with it?

a)

It's about how individuals, businesses, and nations make choices on allocating resources to satisfy their wants and needs.

b)

It's about studying the extra benefit of adding an extra unit.

c)

It's about studying plants.

d)

It's about studying oligopoly and how it affects the economy.

2.

What is an example of a Want?

a)

Shoes

b)

Food

c)

Water

d)

Electricity

3.

What is opportunity cost?

a)

The best financial decisions to make.

b)

The cost of not to or to buy something.

c)

When the change in demand because of price is large.

d)

Exchangeing one thing for the use of another.

4.

You are planning to start a business and you are researching about the essential elements required to successfully run it. You come across a term 'factors of production'. What does it refer to?

a)

  1. Land

  2. Labor

  3. Entrepreneurship

  4. Capital

b)

Water

Food

Electricity

Air

c)

Land

Housing

Government

Revenue

d)

Income

Wages

Businesses

Spending

5.

You are a student studying economics and you come across a chapter that talks about the 4 types of economies. Can you identify them?

a)

Communism

Socialism

Democracy

Monarchy

b)

Government

State

County

Town

c)

Free Market

Mixed

Traditional

Command

d)

Republic

Traditonal

Law of Demand

Dictatorship

6.

You are running a business and you notice that no matter how much the demand for your product increases or decreases, the price remains the same. What economic term describes this phenomenon?

a)

Factors of Demand

b)

Inelasticity of Demand

c)

Recession

d)

Elasticity of Demand

7.

What are Incentivies?

a)

Rewards offered to to persuade people to take certain economic actions.

b)

When the change in demand because of price is large.

c)

The government taxes you highers

d)

They lower the government tax the higher the tax is.

8.

In a country where the government controls some industries and allows private ownership in others, what type of economy is it?

a)

Use a barter/trade system

b)

Communism

c)

Combination of a command economy and a free market.

d)

When you have to give your paychecks to your elders.

9.

What is a command economy?

a)

The government trades with you in order to run the economy.

b)

The government controls all businesses and productions.

c)

You have have the ability to buy or sell whatever you want.

d)

The government has a little bit of say but not all the say in the economy.

10.

What is the concept of supply and demand in economics?

a)

It refers to the relationship between the quantity of a product that producers are willing to sell and the quantity that consumers are willing to buy at different prices.

b)

It refers to the relationship between the quantity of a product that consumers are willing to buy and the quantity that producers are willing to sell at different prices.

c)

It refers to the relationship between the quantity of a product that producers are willing to sell and the quantity that consumers are willing to buy at the same price.

d)

It refers to the relationship between the quantity of a product that consumers are willing to buy and the quantity that producers are willing to sell at the same price.

11.

What is the difference between microeconomics and macroeconomics?

a)

Microeconomics focuses on individual economic agents such as households and firms, while macroeconomics studies the economy as a whole.

b)

Microeconomics focuses on the overall economy, while macroeconomics studies individual economic agents such as households and firms.

c)

Microeconomics focuses on the relationship between supply and demand, while macroeconomics studies the production and distribution of goods and services.

d)

Microeconomics focuses on the production and distribution of goods and services, while macroeconomics studies the relationship between supply and demand.

12.

What is the concept of inflation in economics?

a)

It refers to a sustained increase in the general price level of goods and services in an economy over a period of time.

b)

It refers to a sustained decrease in the general price level of goods and services in an economy over a period of time.

c)

It refers to the difference between the total value of exports and the total value of imports in an economy.

d)

It refers to the difference between the total value of imports and the total value of exports in an economy.

13.

What is the concept of elasticity of demand in economics?

a)

It refers to the responsiveness of the quantity demanded of a good or service to a change in its price.

b)

It refers to the responsiveness of the quantity supplied of a good or service to a change in its price.

c)

It refers to the responsiveness of the quantity demanded of a good or service to a change in income.

d)

It refers to the responsiveness of the quantity supplied of a good or service to a change in income.