Font size
WorksheetsEcon review
Total questions: 64
Worksheet time: 38mins
The desire to have some good or service and the ability to pay for it
supply
equilibrium
demand
quantity demanded
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
A change in the price of a good causes people to buy more or less of an item. This best describes the concept of
the demand curve
change in quantity demanded
change in demand
elasticity
Which of these shows a decrease in the quantity demanded?
Which of these shows an increase in the quantity demanded?
How is a decrease in the price of a good illustrated on a demand graph?
The demand curve shifts to the right.
The demand curve shifts to the left
There is upward movement along the demand curve
There is downward movement along the demand curve.
When the price of good A rises, people start to drink good B. In this case, what is good B considered?
luxury good
complementary good
substitute good
normal good
A decrease in the average incomes of consumers will result in which of the following?
A decrease in the demand for goods and services
An increase in the demand for goods and services
A decrease in the supply of goods and services
An increase in the supply of goods and services
The law of demand states; there is an INVERSE relationship between price and quantity demanded. Which of the following is not a true statement?
Price goes up qty demanded goes down.
Price goes down, qty demanded goes up.
Price goes up, demand goes down.
All answers are correct.
In which way(s) can demand be shown
a demand schedule chart.
a demand curve graph.
using the formula D + E =DE
The demand curve can only shift in one direction.
True
False
Besides price, there are other factors such as income, taste, and substitute goods that can change the demand for a good or service.
True
False
In a school bake sale, supply refers to
how many cookies Liam, Maya, and Rohan are willing to buy.
how many cookies a producer (a parent) is able and willing to make for sale to students.
According to the law of supply, when Abigail's lemonade stand raises the price of lemonade,
Abigail will supply less lemonade as the price increases.
Abigail will supply more lemonade as the price decreases.
Abigail will supply more lemonade as the price increases.
Henry and Arjun run a business together. For their business, profit serves as
a discouragement to supply more of a good.
an incentive to supply more of a good.
When the cost of production for a new toy car increases, Samuel, a toy manufacturer, will experience an
increase in supply.
decrease in supply
Abigail started a small business selling handmade crafts. If the government imposes a tax on Abigail's business, she will most likely
increase the supply of her crafts.
decrease the supply of her crafts.
Charlotte runs a small bakery. If the government provides a subsidy (a grant/free money) to Charlotte's bakery, it will most likely
increase the supply of baked goods.
decrease the supply of baked goods.
Charlotte, Nora, and Kai started a lemonade stand. If they face an increase in competition from other lemonade stands, this will lead to a
decrease in their lemonade supply.
an increase in their lemonade supply
no change in their lemonade supply
Daniel, Elijah, and Jackson started a lemonade stand. They noticed that the cost of lemons, taxes, competition from other lemonade stands, subsidies from their parents, and new lemonade-making technologies can cause
their lemonade supply curve line to disappear.
their lemonade supply curve line to shift to the right or left.
Mason started a tech startup and implemented new technology in his business operations. This will usually lead to
a decrease in supply and shift the supply curve to the left.
an increase in supply and shift the supply curve to the right.
(a) Something that (b) or encourages.
(a) is when the price of a good or service (b) the producer will want to make or produce (c) of it.
When the supply curve line shifts to the right or left is an example of (a)
In which economic system is the protection of private property rights essential?
Command
Traditional
Market
Socialism
In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)
Command
Socialism
Market
Traditional
Based on the passage, East Germany's government planned to transform its economy from: Click the magnifying glass for a better view.
Traditional to mixed
Command to traditional
Market to mixed
Command to mixed
Which of the following best explains a mixed economy?
Private ownership of the factors of production and regulation of businesses by government
Market exchanges answer all three of the big economic questions
Family customs and traditions determine what and how to produce a good
Government answers all three of the big economic questions
_____________ are a positive incentive for entrepreneurs to start a business despite the risks.
Pride
Wealth
Profits
Being an employer
In a __________________ economy, families, clans, or tribes make economic decisions based on generational customs and beliefs.
Mixed
Market
Traditional
Command
For markets to work efficiently, _________________ need to be well defined and enforced by law, otherwise trade would break down.
competition
private property rights
voluntary exchange
consumer soverignty
What does government provide with the revenue it takes in from taxes?
Headaches
Public goods and services
More Congressmen
Greater control of the media
What is the best measure of a nation's standard of living?
real GDP per capita
population growth
savings
national income
When a farm worker loses his job after the harvest, it is an example of
Frictional unemployment
Seasonal unemployment
structural unemployment
cyclical unemployment
Which statement describes full employment?
Everybody who wants a job has a job
There is no unemployment at all
There is no cyclical unemployment
There is no structural unemployment
A general increase in prices is called
inflation
purchasing power
the CPI
a price index
People who underemployed
no longer look for work
work part time or at jobs that are below their skills
are the same as unemployed workers
experience only frictional employment
The inflation rate is
the ability to buy goods or services
measured in fixed dollars
not an important measure to economists
the percentage change in prices over time
Inflation reduced people's purchasing power because
the same amount of money buys ore goods and services
the same amount of money buys fewer goods and services
the market basket has to be changed every year
there is not enough money in the economy
In which part of the GDP calculation does this fit?
You spend $15 at AMC to see the latest Avengers movie.
Consumer spending
Government spending
Investment spending
Net exports
In which part of the GDP calculation does this fit?
The US military spends $5 billion on five new helicopters.
Consumer spending
Government spending
Investment spending
Net exports
In which part of the GDP calculation does this fit?
The local taxi service purchases new vehicles for the
company.
Consumer spending
Government spending
Investment spending
Net exports
a woman who lost her job due to a decrease in sales during a recession in the economy is...
frictionally unemployed
structurally unemployed
technologically unemployed
cyclically unemployed
seasonally unemployed
Which of the following best defines unemployment?
The state of being able to work and actively seeking work, but unable to find employment
The state of being able to work, but choosing not to
The percentage of the labour force that is able and actively seeking work, but cannot find employment
The total number of people who do not work
Which of these people is officially unemployed
A secretary who took 6 months off for maternity leave
An aspiring actress who waits tables but would rather act
Maid who got fired and will start a new job in 2 weeks
A student who only works 4 hours a week in the library
What does this curve represent?
Change in Demand
Change in supply
Change in Quantity Demanded
Change in Quantity Supplied
Change in Quantity Supplied
Decrease in Supply
Increase in Supply
Decrease in Supply and Decrease in Demand
Cost of Steel decreases
Government gives Car producers Subsidies
Price of Autos increase
increase in supply
increase in quantity supplied
decrease in supply
decrease in quantity supplied
If the price of printers goes down, what happens in the market for ink cartridges?
Supply increases.
Supply decreases.
Demand increases.
Demand decreases
What goes on the horizontal axis (x axis) of a demand graph?
price
quantity demanded
quantity supplied
change in demand
