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Worksheets

Economics

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

In the above diagram curves 1, 2, and 3 represent the:

a)

average, marginal, and total product curves respectively.

b)

marginal, average, and total product curves respectively.

c)

total, average, and marginal product curves respectively.

d)

total, marginal, and average product curves respectively.

2.

If in the short run a firm's total product is increasing, then its:

a)

marginal product must also be increasing.

b)

marginal product must be decreasing.

c)

marginal product could be either increasing or decreasing.

d)

average product must also be increasing.

3.
What is the relationship between demand and price?
a)
Constant
b)
Unrelated
c)
Inverse
d)
Direct
4.
What is 'effective demand'?
a)
The quantity of a product available for sale
b)
The desire for a product coupled with the ability and willingness to pay
c)
The ability to pay for a product
d)
The desire for a product
5.
How do changes in price affect demand for different types of goods?
a)
Price decreases lead to decreased demand
b)
Price increases lead to increased demand
c)
Price changes do not affect demand
d)
Price increases lead to decreased demand for non-essential goods and little change in demand for essential goods
6.

The firm has found a new method of production which helps lower the costs of production. What effect does this have on the iPhone market?

a)

Favourable shift in supply

b)

Unfavourable shift in supply

c)

Favourable shift in demand

d)

Unfavourable shift in demand

7.

If there is a wage increase for all workers in manufacturing, what is the effect on the iPhone market?

a)

Favourable shift in supply

b)

Unfavourable shift in supply

c)

Favourable shift in demand

d)

Unfavourable shift in demand

8.

The price of Samsung phones has just decreased. What effect does this have on the market for iPhones?

a)

A favourable shift in supply

b)

An unfavourable shift in supply

c)

A favourable shift in demand

d)

An unfavourable shift in demand

9.

In the market for iPhones there is an increase in the price of glass. This will cause:

a)

A favourable shift in supply

b)

A favourable shift in demand

c)

No effect

d)

A favourable shift in both demand and supply

10.

What is derived demand?

a)

When two or more goods are demanded together to fulfill a specific need or want

b)

When the demand for a good is derived from the demand for another related good

c)

When a good or service is demanded for multiple purposes

d)

When the production of one good results in the production of another good

11.

What is competitive supply?

a)

When the demand for a good is derived from the demand for another related good

b)

When two or more goods require the same resources or inputs to be produced

c)

When the supply of a single good or resource comes from multiple sources

d)

When the production of one good results in the production of another good

12.

Goods and services sold to other countries are......

a)
b)
c)
13.
The point where supply and demand are balanced is?
a)
product
b)
demand
c)
surplus
d)
equilibrium
14.

What will happen to the supply & price of tomatoes if more farmers decide to start growing tomatoes?

a)

Supply will increase

b)

Price will go down

c)

Prices remain the same

d)

Supply decreases

15.

In the law of diminishing marginal utility, Alfred Marshall assumes that marginal utility of money _______

a)

increases

b)

remains constant

c)

decreases

d)

raises and then falls

16.

Utility is the cause of consumption, ______ is the end result of consumption.

a)

satisfaction

b)

disutility

c)

dissatisfaction

d)

total utility

17.

The law of demand assumes ceteris paribus which means ...

a)

factors such as price remains unchanged.

b)

all other factors remain unchanged.

c)

that the only factor to change is the consumer's income.

d)

all of the above.

18.

Total Utility will be greatest when marginal utility equals

a)

0

b)

1

c)

2

d)

3

19.

The total utility definition states:

a)

The usefulness, benefit or satisfaction a consumer gains from consuming a product.

b)

The satisfaction gained from consuming a quantity of an economic good, measured in utils.

c)

The added consumer satisfaction from consuming a quantity of a good.

d)

The consumer's satisfaction from consuming a quantity of a good.

20.

The definition of the law of diminishing marginal utility

a)

As more units are consumed the marginal utility falls.

b)

As more units are consumed the marginal utility increases.

c)

As price decreases quantity demanded increases.

d)

As price increases consumers are willing to pay more.

21.

Definition of Marginal Utility

a)

the satisfaction from consumption

b)

to total satisfaction from consuming a product

c)

the extra satisfaction from the last unit consumed

d)

the extra consumption from last unit consumed

22.

Which best expresses the law of diminishing marginal utility?

a)

The more consumption of a product, the smaller is the total and marginal utility

from the consumption.

b)

The less consumption of a product, the greater is the total and marginal utility of

the consumption

c)

The more consumption of a product, the smaller is the marginal utility from

consuming an additional unit.

d)

The more consumption of a produc t, the smaller is the total and marginal utility

from the consumption.

23.

Marginal utility is the

a)

overall satisfaction from consuming a good

b)

additional satisfaction from consuming one more unit of a good

c)

average satisfaction from consuming a good

d)

the change in satisfaction from consuming 1% more of a good

24.

Total utility can be measured as

a)

the sum of all marginal utilities

b)

the sum of all average utilities

c)

the total revenue spent on goods and services

d)

the price of a product

25.

A word that can be substituted for utility is

a)

cost

b)

price

c)

satisfaction

d)

income