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Economics Quiz

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

If the price elasticity of demand for a good is -0.8, what happens to total revenue when the price increases?

a)

Total revenue remains unchanged

b)

Total revenue decreases

c)

Total revenue increases

d)

It depends on the size of the price increase

2.

Which one of the following activities would be included in the tertiary sector of an economy?

a)

Car manufacturing

b)

Fish market

c)

Housebuilding

d)

Insurance

3.

Which of the following correctly states the rewards to land and entrepreneurship?

a)

Rent and profit

b)

Interest and profit

c)

Wages and profit

d)

Wages and rent

4.

Which of these is a barrier to entry in opening a clothes shop in a town centre?

a)

Qualifications required by staff

b)

A lack of competition

c)

Brand loyalty to established shops

d)

Inelastic demand for clothes

5.

If there is excess demand in a market, then

a)

Price will rise to meet demand

b)

Consumers will demand more of the product

c)

Price will fall to reach equilibrium

d)

Producers will continue to supply to the market at the current rate

6.

The merger between Vodafone and Three has been given the go ahead. This means there are very few providers of mobile networks. This is an example of:

a)

An oligopolistic market

b)

A factor of production

c)

Opportunity cost

d)

An increase in capital goods

7.

Which of these is an example of a fixed cost?

a)

Commission paid to workers

b)

Raw materials

c)

Electricity

d)

Rent

8.

Which of these is a positive externality?

a)

An increase in traffic on matchdays near a football stadium

b)

An increase in value of homes located near a tourist attraction

c)

An increase in carbon dioxide emissions near a factory

d)

An increase in litter near a fast-food restaurant

9.

Which of these items is from a factor market?

a)

Leather

b)

Coffee beans

c)

Computer tablet

d)

Light bulb

10.

A national chain selling second-hand tech items wishes to expand and can borrow money to purchase new stores at a discounted rate. This is an example of:

a)

Financial economies of scale

b)

Purchasing economies of scale

c)

Marketing economies of scale

d)

Economies of scale

11.

Which of these is an example of a benefit of division of labour?

a)

High absenteeism

b)

Greater output per person

c)

Greater variety of workplace activities

d)

A fall in dependence between workers

12.

Which of the following factors is MOST likely to make the supply of a good elastic?

a)

The production process is complex and requires specialised inputs

b)

The good is perishable (e.g., fresh food)

c)

The cost of production is high and fixed

d)

There are few close substitutes for the good