Worksheetseconomics
Total questions: 42
Worksheet time: 23mins
Name
Class
Date
1.
PRICE ELASTICITY OF DEMAND (PED) SHOWS HOW
a)
A CHANGE IN INCOME AFFECTS THE PRICE OF A PRODUCT
b)
A CHANGE OF PRICE AFFECTS THE QUANTITY OF THE PRODUCT DEMANDED
c)
A CHANGE IN PRICE AFFECTS THE LEVEL OF PROFITS FOR A FIRM
d)
A CHANGE IN DEMAND AFFACETS THE PRICE OF A PRODUCT
2.
WHAT IS THE FORMULA FOR PED?
a)
% CHANGE IN INCOME / % CHANGE IN PRICE
b)
% CHANGE IN QUANTITY DEMANDED / % CHANGE IN PRICE
c)
% CHANGE IN PRICE / % CHANGE IN QUANTITY DEMANDED
d)
% CHANGE IN QUANTITY DEMANDED / % CHANGE IN INCOME
3.
A BUSINESS REDUCES THE PRICE OF A PRODUCT FROM £10 TO £7. AS A RESULT DEMAND INCREASES FROM 10,000 TO 12,000 UNITS. CALCULATE PED FOR THE PRODUCT.
a)
- 0.67
b)
- 1.2
c)
0.67
d)
1.2
4.
IF A PRODUCT HAS PED OF - 0.6 WHAT WILL HAPPEN TO QUANTITY DEMANDED IF PRICE RISES BY 15%?
a)
DEMAND INCREASES BY 9%
b)
DEMAND DECREASES BY 9%
c)
DEMAND DECREASES BY 13%
d)
DEMAND DECREASES BY 25%
5.
A RETAILER RISES THE PRICES OF ITS PRODUCTS BY 15% IN THE HOPE OF INCREASING ITS REVENUE. HOWEVER REVENUE ACTUALLY FALLS. WHAT IS THE BEST EXPLANATION FOR THIS?
a)
THAT PED IS GREATER THAN 1
b)
THAT PED IS LESS THAN 1
c)
THAT PED IS EQUAL TO 1
6.
WHICH OF THESE STAEMENTS CONCERNING PED ARE TRUE?
a)
PRODUCTS THAT ARE CONSUMED OUT OF HABIT TEND TO HAVE A HIGHER PRICE ELASTICITY
b)
THE LESS NECESSARY A PRODUCT THE MORE DEMAND TENDS TO BE PRICE INELASTIC
c)
PRODUCTS WITH A STRONG BRAND LOYALTY TEND TO BE PRICE INELASTIC
7.
IF A PRODUCT HAS A PED OF -1.5, WHAT WILL HAPPEN TO QUANTITY DEMANDED IF PRICE FALLS BY 10%?
a)
DEMAND INCREASES BY 15%
b)
DEMAND DECREASES BY 15%
c)
DEMAND INCREASES BY 10%
d)
DEMAND DECREASES BY 10%
8.
WHAT DOES A PED VALUE OF 0 INDICATE ABOUT A PRODUCT'S DEMAND?
a)
DEMAND IS ELASTIC
b)
DEMAND IS PERFECTLY ELASTIC
c)
DEMAND IS PERFECTLY INELASTIC
d)
DEMAND IS UNITARY ELASTIC
9.
A COMPANY LOWERS THE PRICE OF ITS SERVICE BY 20% AND SEES AN INCREASE IN REVENUE. WHAT CAN BE INFERRED ABOUT THE PED?
a)
PED IS ZERO
b)
PED IS LESS THAN 1
c)
PED IS EQUAL TO 1
d)
PED IS GREATER THAN 1
10.
Which of the following is an example of a ‘need’ rather than a ‘want’?
a)
Apple Juice
b)
Lemonade
c)
Water
d)
Coca Cola
11.
Which of these is not considered an economic group?
a)
Consumers
b)
Producers
c)
Labour
d)
Government
12.
Which of the following is the central purpose of economic activity?
a)
Maximising the profits of firms
b)
Producing goods and services to satisfy needs and wants
c)
Reducing the power of monopolies
d)
Reducing inequalities in income and wealth
13.
Scarcity refers to a gap between limited resources and theoretically limitless wants.
a)
True
b)
False
14.
Wants are required for survival
a)
True
b)
False
15.
Select a want from the below list
a)
Water
b)
Laptop
c)
Cinema Tickets
d)
Grains/seeds
e)
Car
16.
Match the following
a)
Capital
1.
Microsoft Factory
b)
Enterprise
2.
Bill Gates
c)
Land
3.
Gold for computer chips
d)
Labour
4.
Coder
17.
Identify the economic sector related to information and research.
a)Quaternary Sector
b)Primary
c)Secondary
d)Tertiary
1
1)
18.
Which of these is a type of non-price competition?
a)
BOGOF (Buy One Get One Free)
b)
Promotional pricing on new products
c)
Flyers through the door
d)
3 for 2 deals
19.
In a competitive market, what is most likely?
a)
Elastic demand curve and inelastic supply curve
b)
Inelastic demand curve and elastic supply curve
c)
Elastic demand curve and elastic supply curve
d)
Inelastic demand and inelastic supply curve
20.
Which of these is not a feature of Perfect competition?
a)
Many buyers
b)
Perfect information
c)
Many sellers
d)
Barriers to entry
21.
Which of the following is NOT a feature of monopolistic competition?
a)
Numerous sellers
b)
Product differentiation
c)
Numerous buyers
d)
Homogenous products
22.
In which form of market structure would price be the key factor when competing?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic competition
d)
Perfect competition
23.
Which of the following is the least competitive market structure?
a)
Perfect competition
b)
Monopolistic competition
c)
Oligopoly
d)
Monopoly
24.
Which of the following is the most competitive market structure?
a)
Perfect competition
b)
Monopolistic competition
c)
Oligopoly
d)
Monopoly
25.
Select reasons why people/jobs roles are paid differently
a)
Risk of the job
b)
Qualifications
c)
Experience in the role
d)
Personality
e)
Marital Status
26.
Define the term Gross Pay
a)
Pay before deductions
b)
Pay after deductions
27.
Select the typical deductions from a payslip
a)
Income Tax
b)
Council Tax
c)
Trade Union Menbership
d)
Pension Contributions
e)
Car Repayment
28.
Define the term Net Pay
a)
Pay before deductions
b)
Pay after deductions
29.
Look at the information below and calculate Paul's monthly net pay
a)
A
b)
B
c)
C
d)
D
30.
Which of these best describes opportunity cost?
a)
The next best product that is given up when we make a consumption choice
b)
The cost of purchasing a house
c)
The price of two different chocolate bars
d)
Considering the price of earphones when purchasing a phone
31.
What would happen to the demand for chocolate bars if there was increase in advertising spending by the chocolate manufacturer
a)
Expansion of demand
b)
Contraction of demand
c)
Shift to right (increase)
d)
Shift to left (decrease)
32.
What would happen to the demand for chocolate bars if there was a television campaign outlining the dangers associated with eating too many sugary foods
a)
Expansion of demand
b)
Contraction of demand
c)
Shift to right (increase)
d)
Shift to left (decrease)
33.
What would happen to the demand for chocolate bars if there was a reduction in consumers’ disposable income.
a)
Expansion of demand
b)
Contraction of demand
c)
Shift to right (increase)
d)
Shift to left (decrease)
34.
What would happen to the demand for chocolate bars if there was a reduction in price of the product?
a)
Expansion of demand
b)
Contraction of demand
c)
Shift to right (increase)
d)
Shift to left (decrease)
35.
Which of the following would lead to a leftward shift of the demand curve for a packet of crisps?
a)
A rise in general income levels
b)
An increase in the price of potatoes
c)
More advertising for the crisps
d)
A fall in the price of a packet of peanuts
36.
What happens to demand for expensive trainers such as Nike if interest rates rise leaving people with have less disposable income
a)
Expansion of demand
b)
Contraction of demand
c)
Shift to right (increase)
d)
Shift to left (decrease)
37.
What happens to the demand for tofu if the plant based food trend becomes increasingly popular
a)
Expansion of demand
b)
Contraction of demand
c)
Shift to right (increase)
d)
Shift to left (decrease)
38.
What happens to the demand for coloured pencils if there is a price increase of 50%
a)
Expansion of demand
b)
Contraction of demand
c)
Shift to right (increase)
d)
Shift to left (decrease)
39.
What is the effect on the supply of luxury cars if the cost of production decreases significantly?
a)
Expansion of supply
b)
Shift to right (increase)
c)
Contraction of supply
d)
Shift to left (decrease)
40.
Which of the following is NOT a characteristic of an oligopoly?
a)
Barriers to entry
b)
Homogenous products
c)
Interdependent pricing
d)
Few sellers
41.
Which of the following is a characteristic of a monopoly?
a)
Homogenous products
b)
Single seller
c)
Many sellers
d)
No barriers to entry
42.
Which of the following is an example of a 'want' rather than a 'need'?
a)
Water
b)
Bread
c)
Designer clothes
d)
Basic shelter
100 %
