WorksheetsFoundations of Economics
Total questions: 37
Worksheet time: 37mins
Economics is best defined as the study of:
How individuals spend their money
How governments allocate resources
How society manages its scarce resources
How businesses maximise profits
The opportunity cost of a decision is:
Total monetary cost
The highest valued alternative that must be forgone
the total time spent on the decision
the lowest priced alternative available
Which of the following is a positive (factual) economic statement?
The minimum wage should be increased to reduce poverty.
Lower taxes will lead to higher economic growth.
The unemployment rate is 5%.
Pollution is harmful to the environment.
Which of the following is a normative (opinion) economic statement?
The price of gasoline is $3.50 per gallon.
Rent control should be implemented to address housing affordability.
The demand for luxury cars has increased.
The supply of coffee has decreased due to adverse weather.
The law of demand states that:
As the price of a good increases, quantity demanded increases.
As the price of a good increases, quantity demanded decreases.
As the price of a good decreases, quantity demanded increases.
There is no relationship between price and quantity demanded.
Which of the following would cause a movement along the demand curve for smartphones?
A change in consumer income.
A change in the price of smartphones.
A change in consumer tastes and preferences.
A change in the price of tablet computers.
Which of the following is a determinant of supply?
Consumer preferences.
Technology
Income
Price of substitutes
If the price of coffee increases and the quantity demanded decreases, then coffee is:
An inferior good
A normal good
A complement
An elastic good
The term "invisible hand" is associated with which economist?
Karl Marx
John Maynard Keynes
Adam Smith
Milton Friedman
Gross Domestic Product (GDP) is the total:
Value of exports minus imports
Value of government spending
Value of all final good and services produced within a country's borders
Value of all goods and services consumed within a country
Inflation is defined as:
A decrease in general levels of prices
An increase in general level of prices
The percentage change in nominal GDP
The percentage change in real GDP
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and one seller
One buyer and many sellers
Many buyers and many sellers
One buyer and one seller
The Lorenz curve is used to illustrate:
The relationship between supply and demand
The impact of taxes on consumer welfare
The distribution of income in a society
Income inequality within a population
Which of the following is a factor of production?
Labour
Money
Consumer goods
Financial assets
Which of the following is a factor of production?
Land and cooked materials
Land and raw materials
Consumer preference
Consumer taste
Which of the following is a factor of production?
Supply
Demand
Capital
Dichotomy
In the Circular flow of income the household acts as:
Producers
Consumers
Government entities
Investors
In the circular flow model, what do firms provide to households?
Goods and services
Taxes
Income
Financial capital
What does the government injected into the circular flow model?
Resources
Labour
Public goods and services
Squalor
In the circular flow model, identify the Injection:
Net Saving
Net Taxes
Exports
Imports
In the circular flow model, identify the Injection:
Investment
Saving
Taxes
Imports
In the circular flow model, identify the Injection:
Saving
Government Expenditure
Taxes
Imports
In the circular flow model, identify the Withdrawal:
Investment
Saving
Government Expenditure
Exports
In the circular flow model, identify the Withdrawal:
Investment
Government Expenditure
Taxes
Exports
In the circular flow model, identify the Withdrawal:
Imports
Exports
Investments
Government Expenditure
What's the central bank of the USA:
The federal reserve
The bank of America
The reserve de la federal
America big boy bank
What's the central bank of the UK:
The Bank of Scotland
The Bank of Wales
The Bank of Ireland
The Bank of England
Celeste likes to eat a Vegan plant burger, this would be known as her what?
Consumer preference
Opinion
Factual analysis of the food market
Factor of production
Basil identified that Japan has recently had Earthquake, this has lead to what?
A drop of energy supply in Japan.
Big raves in Japan.
Rugby becoming a popular sport in Japan.
An increase in the supply of energy in Japan.
Tobi enjoys Gym sessions, what is his opportunity cost of going to the Gym?
Getting Shredded
Losing out on the best forgone alternative
MyProtein Sales increasing
GymShark sales increasing
Benjamin decides to go back in time to the Caveman era, how can he trade?
Bartering
Paying with gold
Paying with Pounds
Paying with Dollars
Bradley loves a Balance of Payments sheet: Which account is not on a balance of payments?
Capital
Current
Climate Change
Karolina buys new clothes for Aerial Fitness, relating to the circular flow which arrow is most appropriate for this purchase:
Factor payments
Consumption of domestically produced goods and services
Net Saving
Net Taxes
Jessie, is trying to give every person on the planet a Pokémon game, how can she do this using an economic approach?
Redistribution
Scarcity
Productive efficiency
Efficacy
Georgia wants to buy a Basketball court? How would she utilise the circular flow model to grow her income?
Net Taxes
Net Savings
Imports
Exports
James wants more Tourism lectures...
The demand for tourism increases
The supply for tourism increases
The supply for tourism decreases
The demand for tourism decreases
Jake buys his shoes using income, how can Jake generate income?
Factor payments
Net Taxes
Net Savings
Consumption of domestically produced goods
