WorksheetsEcon
Total questions: 63
Worksheet time: 51mins
What is economics?
Is the study of how people make decisions based on forecasts that always fulfill our needs and decrease our money
Is the study of how individuals, firms and societies choose to use their scarce resources, in order to improve their benefits, well-being, welfare or happiness
Is about how societies struggle to achieve the economic happinness due to governments.
Is the science that studies how societies interact in the commercial way in order to create a constant movement of money and avoiding inflation
Name the economic agents
Knowledge, income, properties, time and health are (a) of individual hoseholds
What are the decisions individual households make
What to produce, how to, how much, the price of each product, finance, investment.
Education, health, national security, infrastructure, social welfare, etc.
What to buy, where to work, what to study
How to spend time and money
What is essential for a firm to take in account when making a decision
What are the factors of production in a firm ?
Scarce resources of governments
NON OF THE BELOW
Tax revenues, natural resources an human resources
Knowledge, income, properties, time, health
Labor, capital, land and entrepreneurship
What is the goal of governments?
(a)
What is the cost of decision?
What you decide to go, and assume how it affects what you choose and it implies a trade off
The best alternative that comes with any consequences
The option that only affects us in a positive way and that doesn't take others in account
None of the above
It is the best alternative that we forget, or give up, when we make a choice or a decision.
(a)
You are able to decide what and how much to buy. And producers how much to produce at what price, freely for both parts.
none
Command Economy
Free Market
Mixed Economies
Which type of economy is based on the specific needs and no more, it's not a free decision the actions you take .
(a)
What is the market failure?
Karl Marx was known for:
Argued that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, held that governments should increase spending, even if it means going into debt. Use scarce resources to satisfy unlimited human wants.
Being in the right and argued that the specialization of the labor force, coupled with a growing population, pushes wages down, adding that the value placed on goods and services does not accurately account for the true cost of labor, that he called surplus value,
Being in the left and introducing the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.
He said that an entity's greatest responsibility lies in the satisfaction of the shareholders. Therefore, the business should always endeavor to maximize its revenues to increase returns for the shareholders.
John Keynes was known for:
Argued that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, held that governments should increase spending, even if it means going into debt. Use scarce resources to satisfy unlimited human wants.
Being in the right and argued that the specialization of the labor force, coupled with a growing population, pushes wages down, adding that the value placed on goods and services does not accurately account for the true cost of labor, that he called surplus value,
Being in the left and introducing the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.
He said that an entity's greatest responsibility lies in the satisfaction of the shareholders. Therefore, the business should always endeavor to maximize its revenues to increase returns for the shareholders.
Friedman was known for:
Argued that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, held that governments should increase spending, even if it means going into debt. Use scarce resources to satisfy unlimited human wants.
Being in the right and argued that the specialization of the labor force, coupled with a growing population, pushes wages down, adding that the value placed on goods and services does not accurately account for the true cost of labor, that he called surplus value,
Being in the left and introducing the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.
He said that an entity's greatest responsibility lies in the satisfaction of the shareholders. Therefore, the business should always endeavor to maximize its revenues to increase returns for the shareholders.
Adam Smith was known for:
Argued that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, held that governments should increase spending, even if it means going into debt. Use scarce resources to satisfy unlimited human wants.
Being in the right and argued that the specialization of the labor force, coupled with a growing population, pushes wages down, adding that the value placed on goods and services does not accurately account for the true cost of labor, that he called surplus value,
Being in the left and introducing the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.
He said that an entity's greatest responsibility lies in the satisfaction of the shareholders. Therefore, the business should always endeavor to maximize its revenues to increase returns for the shareholders.
This revolution focuses on interactivity, automation, machine learning and real time data, and will improve how departments work in a production, eliminating barriers and creating hyperconnectivity
(a)
What is an individual decision ?
None of the below
When consumers and producers can get together in a market to achieve social well being. And according to Adam Smith, this is possible unless a market failure exists.
When an individual household gets to decide where to spend there money
When there is a market failure and individual households reunite to go against the system and solve the situation.
How does the price mechanism work in a competitive market?
Producers offer articles for sale only if the price covers production costs, and sellers adjust prices based on competition
The government determines prices to ensure fairness
Sellers set prices arbitrarily based on demand
Prices are fixed and cannot be changed in a competitive marke
What is demand quantity?
The quantity of goods available in the market
The quantity of goods produced by sellers
The total quantity of goods and services in an economy
The amount consumers plan to buy at a specific price in a certain period
According to the law of demand, what happens when the price of a good increases?
Quantity demanded remains the same
Quantity demanded decreases
Quantity demanded increases
Quantity demanded is unpredictable
What does a demand curve show?
How does the price of related goods affect demand?
No effect on demand
The price of complements has no impact on demand
Prices of related goods have an inverse relationship with demand
If the price of a substitute rises, people buy less of it and more of the original product
What is the supply quantity?
The quantity of goods consumers are willing to buy
The amount that producers plan on selling during a certain period at a specific price
The quantity of goods available in the market
The total quantity of goods produced in an economy
According to the law of supply, what happens when the price of a good decreases?
(a)
What does a supply curve show?
The relationship between the quantity offered of a good and its price when other influences remain unchanged
The relationship between demand quantity and price
The historical changes in supply over time
The total quantity of goods produced in the market
How does the number of suppliers influence supply?
The number of suppliers has an inverse relationship with supply
A decrease in the number of suppliers increases supply
The larger the number of firms, the greater is the supply of the good
No effect on supply
How can the demand curve be interpreted as a measure of marginal benefit?
It shows that as the available quantity of a good is limited, people are willing to pay a higher price for additional units
It measures the total benefit consumers receive
It indicates the maximum price consumers are willing to pay for any quantity of a good
It measures the average benefit consumers receive
What happens when the price of a good decreases according to movement along the demand curve?
(a)
When does a shift of the demand curve occur?
When demand increases or decreases
When factors influencing purchase change while the price remains constant
When the price of a good changes
When the quantity demanded at each price is higher
What is a change in demand?
A change in the price of a good
A shift of the demand curve
A movement along the demand curve
When any factors influencing shopping plans cause the demand curve to shift, leading to a higher quantity demanded at each price
How does future income and credit affect demand?
An increase in expected future income or easier credit access can lead to an increase in current demand
It decreases demand for all goods
It has no impact on demand
It leads to a decrease in current demand
What does a supply schedule state?
The historical changes in supply over time
The total quantity of goods available in the market
he quantities supplied at each price when all other influences on producers' planned sales remain unchanged
The relationship between quantity offered and price
What does the minimum supply price represent?
The average cost of production
The lowest price at which someone is willing to sell an additional unit, influenced by marginal cost
The maximum price consumers are willing to pay
The highest price a producer is willing to accept
How does technology influence supply?
Can increase the quantity of goods that can be produced, leading to an increase in supply
It has no impact on supply
It decreases supply by increasing production costs
Technology only affects demand, not supply
What role do natural conditions play in supply?
Natural conditions only affect demand, not supply
Influence the feasibility of production and, consequently, the supply of goods
Natural conditions determine the prices of goods
Natural conditions have no impact on supply
How do market forces regulate prices and quantities bought and sold?
Regulates quantities demanded and supplied, adjusting when plans do not match
By allowing sellers to set prices arbitrarily
By fixing prices through government intervention
By limiting the quantity of goods available in the market
What happens when both supply and demand increase?
What does price elasticity of demand measure?
The relationship between price and quantity supplied
The total revenue of a good
The responsiveness of the quantity demanded to a change in price
The percentage change in quantity supplied
When is demand considered elastic?
When the elasticity is 0, meaning the quantity demanded does not change at all regardless of the price change
When the elasticity is equal to 1, meaning the quantity demanded changes proportionally to the price change
When the elasticity is between 0 and 1, meaning the quantity demanded changes only slightly in response to a price change
When the elasticity is greater than 1, meaning the quantity demanded changes significantly in response to a small price change
What does microeconomics focus on?
The global economic system
The overall value produced in a country
The individual unit, including households, firms, and industries
The long-term trends in a nation's GDP
What characterizes positive economics?
It focuses on economic policies to achieve better outcomes
It evaluates outcomes of economic behavior and prescribes courses of action
Understands behavior and the operation of economic systems without making judgments
It analyzes the ethical implications of economic decisions
What does efficiency refer to in evaluating economic policies?
Producing at minimum cost without sacrificing quality and at the best possible time
The upward long-term trend of a nation's GDP
Low inflation and low unemployment rates
Fairness and better income distribution
What are the different markets discussed in Chapter 3?
Markets of goods and services only
Markets of factors of production only
Markets of goods and services, markets of factors of production, and markets of financial assets
Markets of financial assets only
According to the law of demand what happens to the quantity demanded as price increases?
(a)
What does a price elasticity of demand between 0 and 1 indicate?
Demand is unit elastic, meaning that the quantity demanded changes proportionally to the price change
Demand is perfectly inelastic, meaning that the quantity demanded does not change at all
Demand is inelastic, meaning that the quantity demanded changes only slightly in response to a price change
What is the purpose of a time series graph in economics?
To represent the demand curve
To show the relationship between two variables
To display how a single measure or variable changes over time
To illustrate the equilibrium in a market
What does a scattered diagram in economics typically show?
The equilibrium price and quantity in a market
How prices change over time
The relationship between price and quantity demanded
Whether a relation exists between two variables and describes their relationship
How does the market tend toward equilibrium?
By allowing sellers to set prices arbitrarily
By limiting the quantity of goods available in the market
By fixing prices through government intervention
The price regulates the purchase and sale plans, and adjustments are made when plans do not match
What does normative economics involve?
Analyzing outcomes of economic behavior, evaluating them as good or bad, and prescribing courses of action
Focusing on the overall value produced in a country
Describing economic systems and models without making judgments
Evaluating the efficiency of economic policies
What is the "invisible hand of the market"?
The price adjusting when plans of buyers and sellers do not match, ensuring equilibrium
The role of consumers in setting prices
Government intervention in the market
The fixed relationship between supply and demand
How does a decrease in demand and an increase in supply affect the market?
It decreases both prices and quantities
It increases both prices and quantities
It lowers the price but increases the quantity
It has no impact on the market
What does the income elasticity of demand formula measure?
The responsiveness of the quantity demanded to a change in income
The relationship between price and quantity demanded
The total revenue of a good
The relationship between the quantity supplied and price
How is the cross elasticity of demand used to classify goods?
It distinguishes between substitutes and complements based on the sign of the cross elasticity
It evaluates outcomes of economic behavior
It measures the responsiveness of demand to a change in income
It determines the overall value produced in a country
What is the main focus of microeconomics?
Analyzing individual units like households, firms, and industries
Describing economic systems without making judgments
Evaluating economic policies
Focusing on the overall value produced in a country
How does a movement along the demand curve differ from a shift of the demand curve?
Both result from changes in price
A shift occurs when quantity demanded changes, while a movement is related to changes in consumer preferences
A movement along the curve is caused by a change in price, while a shift is caused by factors other than price
Both terms are interchangeable and refer to the same concept
What is the significance of the equilibrium price in a market?
It indicates a surplus in the market
It is the highest price consumers are willing to pay
It is the fixed government-regulated price
It is the price at which the quantity demanded equals the quantity supplied
How does the market adjust when there is a shortage?
Prices increase to maintain equilibrium
Quantity demanded decreases, leading to an excess supply
The government intervenes to control prices
The price adjusts upward to decrease quantity demanded and increase quantity supplied
What factors influence the elasticity of demand?
The number of suppliers and natural conditions
Closeness of substitutes, proportion of income spent on the good, and time elapsed since the price change
The overall value produced in a country
Only the availability of close substitutes
In which situation does total revenue increase for inelastic demand?
When the price decreases, as the percentage increase in quantity demanded
When the price decreases
When the price increases
Total revenue remains constant for inelastic demand
How does a decrease in both demand and supply impact the market size?
It has no effect on the market size
The size of the market decreases
Both the size of the market and prices increase
The size of the market increases
Who started the market equilibrium model
Marshall in the 18th century
Keynes in the 20th century
Friedman in the 19th century
