WorksheetsMicroeconomics Unit Review
Total questions: 30
Worksheet time: 17mins
Victoria has the option to spend her summer vacation volunteering at an animal shelter or learning how to play a new instrument. She chooses to volunteer at the animal shelter. What is Victoria's opportunity cost?
Learning how to cook
Going on a family trip
Learning to play a new instrument
Volunteering at an animal shelter
The highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want
trade-off
opportunity cost
need
want
I had to choose between ordering pizza or Chinese, since I didn't have enough money for both. I chose pizza. What was the opportunity cost of my decision?
The pizza I ordered
The Chinese food I didn't order
Both the pizza and Chinese food
None of the above
The word economists use to describe the problem of limited resources and people's unlimited wants and needs is...
trade-off
opportunity cost
scarcity
values
Which of these is NOT one of the three economic questions?
What goods and services should be produced?
How should goods and services be produced?
Whom will goods and services be produced for?
Where will goods and services be produced?
Which definition best defines scarcity?
Demand for a good/service that is greater than the availability of that good/service
Benefits lost when choosing one option over another
The willingness of consumers to purchase a given amount of a good/service at a given price
A farmer chooses to plant wheat over corn. What is this an example of?
scarcity
supply and demand
opportunity cost
resources
Which type of economy relies on customs, traditions, and cultural beliefs?
command economy
traditional economy
market economy
mixed economy
In which type of economy does the government have complete control over the allocation of resources and the production of goods and services?
Command economy
Capitalist economy
Mixed economy
Free market economy
Which type of economy combines elements of both market and command economies?
capitalist economy
socialist economy
planned economy
mixed economy
Which type of economy is driven by supply and demand, with prices determined by the interaction of buyers and sellers in the market?
Mixed economy
Command economy
Traditional economy
Market economy
In which type of economy does the government play a significant role in regulating and controlling some economic activities while allowing the free market to operate?
free market economy
command economy
mixed economy
capitalist economy
Which type of economy is based on the principles of individual freedom, private property rights, and profit motive?
planned economy
mixed economy
market economy
command economy
What is equilibrium in economics?
A state of balance where supply exceeds demand.
A state of balance where demand equals supply.
A state of balance where there is no demand or supply.
A state of balance where demand exceeds supply.
What factors can cause a shift in the demand curve?
Political stability in the country
Changes in consumer income, prices of related goods, consumer tastes and preferences, population demographics, and advertising and marketing efforts.
Weather conditions
Changes in producer income
How does a surplus or shortage affect the market?
Surplus and shortage both lead to an increase in price.
Surplus and shortage have no effect on the market.
Surplus leads to a decrease in price while shortage leads to an increase in price.
Surplus leads to an increase in price while shortage leads to a decrease in price.
What is the impact of technological advancements on the supply curve?
Technological advancements shift the supply curve to the left, indicating a decrease in supply.
Technological advancements shift the supply curve to the right, indicating an increase in supply.
Technological advancements do not affect the supply curve.
Technological advancements can either shift the supply curve to the left or right, depending on the nature of the technology.
What is the effect of a change in consumer income on the demand curve?
An increase in consumer income shifts the demand curve to the right, indicating an increase in demand.
An increase in consumer income shifts the demand curve to the left, indicating a decrease in demand.
A change in consumer income does not affect the demand curve.
A change in consumer income can either shift the demand curve to the left or right, depending on the nature of the good.
What is the impact of changes in consumer tastes and preferences on the demand curve?
Changes in consumer tastes and preferences shift the demand curve to the right, indicating an increase in demand.
Changes in consumer tastes and preferences shift the demand curve to the left, indicating a decrease in demand.
Changes in consumer tastes and preferences do not affect the demand curve.
Changes in consumer tastes and preferences can either shift the demand curve to the left or right, depending on the nature of the change.
How does a change in future price expectations affect the supply curve?
A change in future price expectations shifts the supply curve to the right, indicating an increase in supply.
A change in future price expectations shifts the supply curve to the left, indicating a decrease in supply.
A change in future price expectations does not affect the supply curve.
A change in future price expectations can either shift the supply curve to the left or right, depending on the nature of the expectation.
What is the impact of changes in population demographics on the demand curve?
Changes in population demographics shift the demand curve to the right, indicating an increase in demand.
Changes in population demographics shift the demand curve to the left, indicating a decrease in demand.
Changes in population demographics do not affect the demand curve.
Changes in population demographics can either shift the demand curve to the left or right, depending on the nature of the change.
Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?
How can overproduction by producers lead to a surplus in the market?
By setting a minimum price for a good or service below the equilibrium price
By producing fewer goods than consumers are willing to buy
By producing more goods than consumers are willing to buy
By setting a maximum price for a good or service above the equilibrium price
What can cause a shortage in the market?
Government intervention in the form of price controls
Overproduction by producers
An increase in demand without a corresponding increase in supply
A decrease in demand without a corresponding decrease in supply
What is a shortage in the market economy?
When the price is set below the equilibrium price
When the quantity demanded exceeds the quantity supplied
When the quantity supplied exceeds the quantity demanded
When the price is set above the equilibrium price
What is a factor that can contribute to shortages and surpluses in the market?
Increase in population growth
Decrease in technology
Increase in consumer preferences
Government intervention in the form of trade restrictions
What are some ways to measure the standard of living in a country?
Average income, population density, environmental quality, and political stability
Number of hospitals, number of schools, number of roads, and number of airports
GDP per capita, life expectancy, literacy rate, access to healthcare, and poverty rate
Unemployment rate, inflation rate, education expenditure, and crime rate
What are the three basic economic questions all societies must answer?
Who gets to produce goods and services, who gets to consume them, and who collects the profits?
Why should goods and services be produced, when should they be produced, and how should they be produced?
Where should goods and services be produced, who should sell them, and who should get the profits?
What goods and services should be produced, how should they be produced, and who will consume them?
Key advantages of free market economic systems include
rising prices, specialization, negative incentives, and multiple markets.
online markets, producer sovereignty, self-interested consumers, and low prices.
economic efficiency, economic freedom, economic growth, and variety of goods.
positive incentives, negative incentives, specialized consumers, and efficient labor.
What is a direct benefit of trade to consumers?
Reduced product variety
Access to a diverse range of goods and services
Higher prices for goods and services
Access to a limited range of goods
