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WorksheetsEST II Sample 2
Total questions: 60
Worksheet time: 30mins
Limited and scarce goods are
luxury goods
economic goods
capital goods
intermediate goods
consumer goods
Ideas, sunlight, and oxygen are examples of
normal goods
inferior goods
luxury goods
free goods
public goods
The opportunity cost of a product can be defined as
the currency value of the product over a defined period of time
the cost of a product less than the value of the product
what an individual gives up in order to acquire that product
the effective working time to earn the price of the product
None of the above
In order to buy a smartwatch, Joe decided to work 1 extra hour per day for 2 weeks, excluding weekends. Knowing that he earns $7.50 per hour, what was the opportunity cost of his decision?
$105
$75
$37.50
$30
$7.30
Which of the following is NOT likely to be covered in a course on macroeconomics?
the employment and wage-setting patterns of the two largest automobile manufacturers in Korea
the impact of fiscal policy on trade relations between countries that are part of the European Union
the analysis of interest rate policies on inflation over a five-year period in the United States
a study on the reasons contributing to unemployment in the countries of the Middle East
how trade relations between China and its trading partners affect the economic growth of China
If consumers increase their demand for organic vegetables, producers will allocate more resources for the production of organic vegetables in the market because:
Consumers will inform producers of the change in demand that may result in a shortage of organic vegetables.
Organic vegetables are considered a healthy, nutritional product and are a public good.
The cost of production of organic vegetables will decrease.
The price of organic vegetables will increase, making their production more profitable.
All of the above
The demand for Renault cars increased after Peugeot increased the prices of their cars. This indicates that these goods are likely to be seen as:
substitutes
complementary
luxury
independent
regular
The cost of ink cartridges for printers has increased. The consequence will be:
an increase in the quantity of printers demanded
a decrease in the overall supply of printers available
an increase in the quantity of printers supplied
a decrease in the price of printers
an increase in the price of printers
This market will be in equilibrium if the price per unit is:
$10,000
$11,000
$12,000
$13,000
$14,000
In this market, there will be a deficient demand of 15 units if the price is:
$10,000
$11,000
$12,000
$13,000
$14,000
Which of the following is the most likely reason for a demand curve of a normal good shift to the right?
a decrease in the price of the complement
a decrease in the price of that good
a decrease in consumer income
a decrease in the price of a substitute product
None of the above
What would be the effect of setting a low price at 5 units for good X?
There is a surplus in supply of 5 units.
There is a surplus in supply of 10 units.
There is an excess demand of 5 units.
There is an excess demand of 10 units.
The market is in equilibrium.
If the price of product X decreases and the demand for product Y increases, these goods are likely to be
normal goods
luxury goods
inferior goods
substitutes goods
complementary goods
This graph illustrates
the cross elasticity of supply and demand
the price elasticity of demand
the price elasticity of supply
the income elasticity of demand
none of the above
At what point on the graph would the demand be unitary elastic?
P = $30 and Q = 5
P = $30 and Q = 20
P = $20 and Q = 15
P = $20 and Q = 10
P = $10 and Q = 15
In order to decrease pollution, a state wants to decrease the usage of cars by 5%. Knowing that the price elasticity of demand for cars in the state is -2, the state should
decrease the price of cars by 2.5%
decrease the price of cars by 5%
increase the price of cars by 5%
increase the price of cars by 2%
increase the price of cars by 2.5%
The cloth market in a given region includes one buyer and many sellers. This market structure is called
monopsony
monopoly
oligopoly
perfect competition
non-price competition
In order to increase foreign investment in a country, the government should focus on
reducing inflation
reducing unemployment
developing the infrastructure
decreasing interest rates on personal loans
decreasing public expenditures
In order to maximize its profits, a monopolist should
decrease the average cost of production to its minimum
increase the quantity and prices of its products
increase the quantity produced and leave prices unchanged
produce at the amount at which price equals marginal cost
produce at the amount at which marginal cost equals marginal revenue
Implementing adjustments in a competitive market will drive to
excess
deficit
equilibrium
inflation
monopoly
Three companies control the steel market in Country Y. This is an example of
monopoly
oligopoly
monopolistic competition
perfect competition
non-price competition
Which of the following describes monopolistic competition?
Many barriers prevent new companies from entering the market, and only two producers compete.
Marketing and branding are not emphasized since only one producer controls the market.
The product offered by competitors is identical, and supply and demand control the price.
There is often inconsistent quality of the product and very little choice for consumers.
There are few barriers for new companies to enter the market and a variety of choices for consumers.
To address social inequality and to avoid diminishing economic growth, a welfare state should
introduce progressive tax structures and focus solely on public programs that alleviate poverty
eliminate regressive tax structures and increase the number of public programs that alleviate poverty
implement redistribution policies that expand economic opportunities for poorer people
implement redistribution policies to raise the standard of living for poorer people immediately
reduce interest rates on loans to poorer people and increase the number of education programs
The Gross Domestic Product of a country can be described as the total value of all
goods and services produced in a single year
intermediate goods and services produced in a single year
final goods and services produced in a single year
capital goods and services produced in a single year
capital goods and service and the value of all labor contracts for a single year
If all costs of production have been paid, the money remaining can be described as
profit
loss
revenue
average cost
marginal cost
Potential GDP can be reached when there is
low inflation
high economic growth rate
low interest rate
low unemployment rate
full employment
Which term describes the payment made for utilizing someone else’s funds?
debt
stock
stock dividend
interest
initial public offering
A financial institution that implements monetary policy and monitors the money supply is
an insurance company
an equity firm
a private bank
a commercial bank
a central bank
If a household achieved a saving ratio of 25% last month, and the amount saved was $500, what is the consumption amount?
$250
$500
$1000
$1500
$4000
John owns an ironworks company. He sells 70 iron gates in a month at a price of 115 each.With a productioncost of 90 per gate, calculate his profit.
$1250
$1750
$2250
$6300
$8050
What does a Consumption value of 40 indicate?
basic consumption
the level of consumption of luxury goods
the marginal propensity of consumption
fixed consumption that is independent of the income level
historical consumption
Even if income equals consumption, a financial deficit can occur when
income = 30
income = 40
income = 100
income = 200
income = 400
What is the result of subtracting depreciation from GDP (Gross Domestic Product)?
net domestic product
gross national product
net national product
gross national income
market value of finished goods
Jad has sewn 25 pairs of pants priced at 15 each and ten jackets priced at 20 each. What is the total value of these products?
$125
$500
$575
$600
$625
Suppose that the consumption is 1,500,000,investment is 200,000, government spending is 600,000,the value ofexports is 150,000, and the value of imports is 200,000.The income receipt from the rest ofthe world is 20,000, and the income payment to the rest of the world is $13,000. What is the value of Gross National Product (GNP)?
$1,757,000
$2,257,000
$2,307,000
$2,357,000
$3,070,000
A manufacturing company invested in a new machine with advanced technology to reduce production costs, which led to a reduction in the number of employees. As a result, these employees are now unemployed. What is the best description of this type of unemployment?
cyclical
technological
frictional
seasonal
Here is the CPI (consumer price index) information for a bottle of water: the price of the bottle was $5 in 2015 and $5.6 in 2017. What is the inflation rate?
10.7%
12%
13.7%
15%
16.5%
In Country Z, agriculture is the main source of income. In one field, ten workers are harvesting crops, but only seven workers are needed to do the job. What can be said about the three additional workers?
A. They are involuntarily unemployed workers.
B. They need to be retrained to avoid structural unemployment.
C. They are seasonal employees who only work occasionally.
D. They are experiencing frictional unemployment.
E. They are in a state of disguised unemployment.
Inflation is typically measured by an increase in
budget deficit
unemployment
the prices of fuel and energy
the Consumer Price Index
the money supply
Beta Company spent an average of $400 per month last year. Knowing that the inflation rate is now 4%, how might the monthly cost of this company be affected?
The 400monthlycostwillhaveapurchasingpowerof 396.
The value of 400willdecreaseto 282.60, so the monthly cost will be $682.60.
The monthly cost of 400 will likely increase to 416.
The cost will decrease to $318.40 per month.
The $400 monthly cost is likely fixed, so its purchasing power will remain the same.
When the amount of money required to buy the same quantity of goods decreases over a period of years, this is called
a recession
a depression
deflation
inflation
decreased consumption
The number of people excluded from the labor force participation rate is
1750
2000
2550
3000
3340
Based on the table and the previous question, the unemployment rate is
3.2%
8%
9%
10.2%
12%
In the year 2022, the cost of a specific basket of goods was 12,000.In the subsequent year,2023,thecostofthe same basket has risen to 13,800. What is the Consumer Price Index (CPI) for the year 2023?
115
118
125
128
135
A country has a GDP of 153,661,860 million in its currency and a population of 6.75 million. The exchange rate is 88,000 per dollar. What is the GDP per capita of this country in dollars?
$112.5 GDP per capita
$258.69 GDP per capita
$362.53 GDP per capita
$402.62 GDP per capita
$598.21 GDP per capita
Based on the information in the table, what is the value of Gross Domestic Product (GDP)?
$19,500,000
$20,500,000
$22,000,000
$23,500,000
$24,500,000
In which of the following situations does the trade balance deficit occur?
The number of goods imported is greater than the number of goods exported.
The number of goods exported is greater than the number of goods imported.
The money spent on imports is greater than the money received from exports.
The money received from exports is greater than the money spent on imports.
The goods exported are inferior goods, and those imported are luxury goods.
The above graph represents
supply-demand analysis
opportunity cost analysis
cost analysis
benefit analysis
cost-benefit analysis
Nadia’s income was $22,000 in 2022. What was her tax liability (rounded to the nearest dollar) for this year?
$660
$630
$800
$1,100
$1,300
To address a budget deficit, a government’s fiscal policy would likely include
an increase in taxes, imports, and wages
an increase in public spending and interest rates
a decrease in public spending and an increase in wages
a decrease in taxes and an increase in exports
an increase in taxes and a decrease in public spending
In XYZ Bank, the total deposits are 500,000,outofwhich 480,000 are used for loans. What is the bank’s reserve ratio?
2.5%
3.5%
3.75%
4%
5%
What is the average propensity to consume for individuals making $2000?
0.8
0.9
1.0
1.2
not enough information to calculate
What is the marginal propensity to consume?
0.8
0.9
1.0
1.2
not enough information to calculate
Increased public spending on health and education will help
Improve GDP per Capita
Decrease budget deficit
Decrease trade balance deficit
Improve human resource development
Improve human development
The graph above represents
an economic cycle
the inflation rate over time
economic growth
salary and expenditures over time
price changes
An increase in life expectancy at birth is broadly connected to
more infrastructure
an increase in exports
an increase in GDP per capita
the number of schools in a country
support of the agricultural sector
What is the potential economic effect of a lack of respect for democracy within a country?
flight of indigenous capital
a decrease in the literacy rate
an increase of unskilled labor
a decrease in health services
a depreciation of national currency
Which of the following transitions represents a shift from inefficiency to efficiency?
From T to S
From V to T
From S to U
From S to R
From S to V
In a perfectly competitive market, if the price of a good is set below the equilibrium price, what is likely to happen?
Consumers will stop buying the good.
There will be a surplus of the good.
Producers will increase production.
There will be a shortage of the good.
The market will reach equilibrium.
Which of the following factors is most likely to cause a shift in the demand curve for electric cars?
Changes in the price of gasoline
Improvements in battery technology
All of the above
Changes in consumer income
Government regulations on emissions
