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WorksheetsEXCEL MINDS ACADEMIC GROUP, FACULTY OF MANAGEMENT SCIENCES
Total questions: 25
Worksheet time: 19mins
Which of the following best defines economics?
The study of how to produce goods and services
The study of how to allocate scarce resources
The study of money and finance
The study of government policies
What is considered the central problem of economics?
Unemployment
Scarcity
Inflation
Wealty distribution
Economics is divided into which two main branches?
Microeconomics and Finance
Microeconomics and Macroeconomics
Public Economics and Private Economics
Development Economics and Economic Theory
Which of these is an example of a microeconomic issue?
National unemployment rates
Inflation in the country
Pricing decisions of a firm
Government fiscal policy
What is the opportunity cost of a decision?
The monetary cost incurred
The next best alternative foregone
The sum of all alternatives forgone
The time spent in making the decision
A positive economic statement is:
Prescriptive and opinion-based
Descriptive and factual
Related to economic planning
Based on future predictions
What does the term "ceteris paribus" mean in economics?
All things being constant
Allowing for exceptions
Considering external factors
Taking risk into account
Which of the following is a normative economic statement?
"Unemployment is at 6% this year."
"The government should reduce taxes to boost growth."
"Inflation has increased by 3%."
"The price of gas has fallen in recent months."
Which of these is NOT a factor of production?
Land
Labor
Capital
Money
The study of aggregate economic variables like GDP and inflation is the focus of:
Microeconomics
Behavioral Economics
Macroeconomics
Macroeconomics
What is the law of demand?
When income rises, demand increases.
Price and quantity demanded are inversely related.
Price and quantity demanded are directly related.
Demand is always higher than supply
Which of the following shifts the demand curve to the right?
A decrease in consumer income
An increase in the price of a substitute good
An increase in the price of the good itself
A decrease in the population
When the price of a good rises, the quantity supplied:
Decreases
Remains constant
Increases
Doubles
A surplus in the market occurs when:
Demand exceeds supply
Supply exceeds demand
Price is below equilibrium
There is no production
What happens to the equilibrium price when demand increases and supply remains constant?
It rises
It falls
It remains constant
It becomes indeterminate
Which factor does NOT affect the demand for a product?
Consumer preferences
Cost of production
Price of related goods
Consumer income
If the price of a good falls, ceteris paribus, the quantity demanded:
Falls
Rises
Remains constant
Becomes negative
What is the term for goods that are consumed together, like cars and fuel?
Substitute goods
Complementary goods
Inferior goods
Normal goods
A leftward shift in the supply curve indicates:
An increase in supply
A decrease in supply
No change in supply
An increase in demand
The price at which quantity demanded equals quantity supplied is called:
Market price
Equilibrium price
Retail price
Marginal price
What happens when a price ceiling is set below the equilibrium price?
Surplus occurs
Shortage occurs
Demand remains unchanged
Supply increases
Which of these will cause a rightward shift in the supply curve?
An increase in the cost of raw materials
Improved production technology
An increase in taxes on the good
A decrease in the number of producers
Goods for which demand increases as income rises are called:
Inferior goods
Giffen goods
Normal goods
Complementary goods
The cross-price elasticity of demand measures:
The relationship between income and demand
The responsiveness of demand for one good to a change in the price of another good
The relationship between price and quantity supplied
The responsiveness of demand to a change in its own price
When the government imposes a minimum price above the equilibrium price, it creates:
Shortage
Surplus
Black market activities
Increased demand
