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WorksheetsEconomics Concepts Final Review Quiz
Total questions: 20
Worksheet time: 10mins
Which of the following best describes the law of demand?
As the price of a good increases, the quantity demanded increases.
As the price of a good decreases, the quantity demanded increases.
As the price of a good increases, the quantity demanded remains constant.
As the price of a good decreases, the quantity demanded decreases.
In a perfectly competitive market, which of the following is true?
Firms are price makers.
There are significant barriers to entry.
Products are differentiated.
Firms are price takers.
Which of the following is a tool of monetary policy?
Government spending
Taxation
Open market operations
Subsidies
If the government increases its spending, what is the likely short-term effect on aggregate demand?
Aggregate demand will decrease.
Aggregate demand will increase.
Aggregate demand will remain unchanged.
Aggregate demand will fluctuate randomly.
Which of the following is considered a lagging economic indicator?
Stock market returns
Unemployment rate
New housing starts
Consumer confidence index
What happens to the supply curve when there is a technological advancement in production?
The supply curve shifts to the left.
The supply curve shifts to the right.
The supply curve becomes vertical.
The supply curve remains unchanged.
Which market structure is characterized by a single seller?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
What is the primary goal of contractionary fiscal policy?
To increase inflation
To decrease inflation
To increase government debt
To increase unemployment
Which of the following is a characteristic of an oligopoly?
Many small firms
No barriers to entry
Few large firms
Homogeneous products
If the central bank wants to decrease the money supply, which action might it take?
Lower the reserve requirement
Buy government securities
Raise the discount rate
Decrease taxes
Which of the following is an example of a leading economic indicator?
Average duration of unemployment
Industrial production
Building permits
Gross Domestic Product (GDP)
What is the effect on equilibrium price and quantity when both supply and demand increase simultaneously?
Price increases, quantity decreases
Price decreases, quantity increases
Price remains uncertain, quantity increases
Price increases, quantity remains uncertain
Which of the following is a characteristic of monopolistic competition?
Identical products
Few sellers
Product differentiation
High barriers to entry
What is the primary purpose of expansionary monetary policy?
To reduce inflation
To increase unemployment
To stimulate economic growth
To decrease government spending
Which of the following is a direct effect of an increase in the reserve requirement by the central bank?
Increase in money supply
Decrease in money supply
Increase in inflation
Decrease in interest rates
What is the likely effect on the equilibrium price if there is a decrease in demand and an increase in supply?
Price increases
Price decreases
Price remains unchanged
Price becomes unpredictable
Which of the following is a tool used in fiscal policy?
Interest rates
Government spending
Reserve requirements
Open market operations
In which market structure do firms have some control over the price due to product differentiation?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
Which of the following is an example of a coincident economic indicator?
Stock prices
Retail sales
New orders for capital goods
Consumer price index (CPI)
What is the effect of a decrease in taxes on aggregate demand?
Aggregate demand decreases
Aggregate demand increases
Aggregate demand remains unchanged
Aggregate demand fluctuates randomly
