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Worksheets8th Grade economics precomp review
Total questions: 45
Worksheet time: 26mins
What is imperfect information?
When a member of a public sector switches to a member of the private sector
When the market price is different than the actual price
When a producer is not aware of the costs of resources, causing marginal revenue loss per product produced
When the buyer, seller, or both lack information about the product quality
What is asymmetric information?
When both parties have equal information about a transaction
When one party has more or better information than the other
When information is irrelevant to the transaction
When information is perfectly distributed among all market participants
How can imperfect information affect market outcomes?
It leads to perfect competition
It can cause market failures and inefficiencies
It ensures all parties make informed decisions
It has no impact on market outcomes
Which of the following is an example of a market with imperfect information?
A stock market with transparent and timely information
A market where all products are identical and well-known
A market where consumers have full knowledge of product quality
A used car market where sellers know more about the car's condition than buyers
When does moral hazard occur?
When the tax rate becomes disproportionate to a person, leading them to poverty
When people take risks they would otherwise not take because they are insured
When people spend more than their disposable income allows
When a person retires without proper retirement benefits
What are subsides?
A limit used to reach market equilibrium
A barrier to entry in an oligopoly
Payments from the government
Portions of income taken by the government
How can subsidies impact market prices?
They can lower the market price by reducing production costs
They always lead to higher taxes
They have no effect on market prices
They increase the market price of goods
Which of the following is a consequence of moral hazard?
Increased risk-taking behavior
Decreased market competition
Reduced government intervention
Improved product quality
The study of the economic behavior of individual persons, families, and businesses is known as .
What is absolute advantage?
The ability to deter market failure
The ability to make more product with less resources
The objective presence of a leveraged firm
The ability to alter the demand in a market
True or False: a price ceiling is placed above the equilibrium
What is consumer surplus?
When more consumers exist than producers (Dq > Sq) , causing scarcity for the product
When the market price of a good is below the equilibrium price
When a consumer consumes more than economically allowed
A consumers willingness to pay more than the market price
The acronym PRICE is used to define the determinants of demand
What is elasticity
The allocation of a firms needs despite economic viability
Measure of responsiveness to changes in another variable
Amount of producers that can outweigh the amount of consumers without leading to market failure
Change in a markets performance due to price ceilings / floors
Which of the following are factors of production?
Entrepreneur
Land
Labor
Capital
Demand
Which economic field of study focuses on larger-scale topics such as gross domestic product and national unemployment?
Microeconomics
Macroeconomics
The Law of Diminishing Marginal Utility states that....
Each successive unit of consumption does not exceed the utility of the last unit of consumption
Utility is only attainable by consuming services and goods
Utility is maximized when marginal utility = price
Utility is temporary
Which of the following best describes a positive externality?
A government-imposed tax
A benefit received by a third party
A cost incurred by a third party
A market equilibrium condition
What is the effect of a price floor set above the equilibrium price?
It has no effect on the market
It causes prices to fall
It leads to a surplus
It leads to a shortage
What does the T in the acronym SPENT stand for?
Time allowed for product to be recognized on the market
Tertiary producers competing for the most consumers
Technology, which assists in efficiency
Total utility gained from the usage of a product
When the price of a good falls, demand increases
When people pay taxes at the same rate of their incomes, the rate is....
Fixed
Proportional
Regressive
Exponential
Which of the following are true about implicit costs?
Implicit costs are always > 0
Implicit costs are subtracted from total revenue along with explicit costs to get economic profit
Implicit costs are not priced
Implicit costs are opportunity costs
What is marginal revenue?
Marginal revenue is the profit gained from an additional consumer
What are the 4 market structures?
Communism
Capitalism
Mixed
Traditional
International market
IMSM
Capital market
Monopolistic firm
Perfect monopoly
Alternative market
Oligopoly
Secondary market
Perfect competition
Oligopoly
Monopolistic competition
Monopoly
Which of the following is not a barrier to entry?
Legal restrictions
What is the primary characteristic of a perfectly competitive market?
There are many buyers and sellers with no control over prices
Firms have significant control over prices
Products are highly differentiated
There are only a few firms dominating the market
Which of the following best describes a negative externality?
A market equilibrium condition
A government subsidy
A benefit received by a third party
A cost incurred by a third party
What is the role of a price ceiling in a market?
To ensure prices do not fall below a certain level
To ensure prices do not rise above a certain level
To eliminate all market competition
To increase the market price of goods
New firms can enter the industry in the short run
Honda is an example of a(n) (market structure)
(a)
How do governments profit?
Selling products
Collecting taxes
Buying land, and renting it out
International negotiations
Public goods are non-excludable and non-rival
What is a rival good?
What is the primary function of a price floor in a market?
To eliminate all market competition
To ensure prices do not rise above a certain level
To ensure prices do not fall below a certain level
To increase the market price of goods
Which of the following is a characteristic of a monopoly?
One firm makes the price
Products are highly differentiated
One firm controls the entire market
Many firms competing in the market
What is the effect of a subsidy on a product's supply curve?
It has no effect on the supply curve
It shifts the supply curve to the right
It shifts the supply curve to the left
It makes the supply curve vertical
If 2 people can use a good/service simultaneously, it is then classified as a...
rival good
non-rival good
public good
private good
As demand shifts(D to D'), what could be a cause of this?
Consumers find a cheaper related good
Consumers prefer the good
Consumers get more technology
More consumers enter the market
The diagram represents a(n)
increase in supply
decrease in supply
change in quantity supplied
none of the above
A surplus occurs when quantity demanded is less than quantity supplied
What does more elasticity imply?
TA&RA method is able to alter the consumers preference
Consumers are more likely to purchase products even when prices are high
Consumers are more likely to not purchase a product when its price is high
Consumers will not purchase a product if the product is produced under a monopoly
