Font size
S
M
L
XL
WorksheetsS25TH - Microeconomics
Total questions: 96
Worksheet time: 48mins
Name
Class
Date
1.
If the quantity of lawyers supplied goes up 2% for every 1% increase in attorney salaries, the elasticity of supply for attorneys is _______.
a)
elastic
b)
inelastic
c)
Both of these.
d)
Neither of these.
2.
If the quantity of lawyers demanded goes down 1% for every 2% increase in attorney salaries, the elasticity of supply for attorneys is _______.
a)
elastic
b)
inelastic
c)
Both of these.
d)
Neither of these.
3.
What is the primary focus of economics?
a)
Money and finance
b)
Business
c)
Mathematics
d)
How humans make decisions in the face of scarcity
4.
True or False. The primary focus of economics is money and finance.
a)
True
b)
False
5.
True or False. Economics is the study of how individuals, families, businesses, and societies make decisions when faced with scarcity.
a)
True
b)
False
6.
True or False. Scarcity arises when human wants exceed the available resources.
a)
True
b)
False
7.
True or False. Because of scarcity, individuals must make choices about how to allocate their limited resources.
a)
True
b)
False
8.
What is the ultimate scarce resource for everyone?
a)
Money
b)
Land
c)
Time
d)
Raw materials
9.
True or False. The ultimate scarce resource for everyone, regardless of wealth, is time.
a)
True
b)
False
10.
True or False. Money is the ultimate scarce resource.
a)
True
b)
False
11.
How people choose to allocate their time impacts _____.
a)
Their ability to earn income
b)
Their ability to acquire goods and services
c)
Their ability to engage in leisure activities
d)
Their ability to get sufficient sleep.
e)
All of these.
12.
What does scarcity mean in the context of economics?
a)
Abundance of resources
b)
Matching wants and resources
c)
Limited availability of goods, services, and resources
d)
Equal distribution of resources
13.
True or False. Scarcity in economics refers to the situation where human wants for goods, services, and resources exceed what is available.
a)
True
b)
False
14.
Scarcity refers to the limited availability of resources such as _____, which are necessary to produce the desired goods and services.
a)
Labor
b)
Tools
c)
Land
d)
Raw materials
e)
All of these
15.
Which of these is both a subject area and a way of viewing the world?
a)
Mathematics
b)
Business
c)
Economics
d)
Finance
16.
True or False. Economics is both a subject area and a way of viewing the world.
a)
True
b)
False
17.
True or False. Economics is about a specific set of topics.
a)
True
b)
False
18.
True or False. Most of us don’t have enough income to buy all the things we want, and this is called “scarcity.”
a)
True
b)
False
19.
True or False. Most of us don’t have enough income to buy all the things we want, and this is called “poverty.”
a)
True
b)
False
20.
True or False. Scarcity arises because human wants for goods and services exceed what is available.
a)
True
b)
False
21.
True or False. Scarcity only impacts people that live below the poverty level.
a)
True
b)
False
22.
What is the term used to describe the production innovation introduced by Adam Smith in his book, "The Wealth of Nations"?
a)
Comparative advantage
b)
Learning curves
c)
Economies of scale
d)
Division and specialization of labor
23.
True or False. When tasks are divided and subdivided, workers and businesses can produce a greater quantity of output due to increased efficiency.
a)
True
b)
False
24.
Because of economies of scale, as the quantity that is produced goes up, the cost per unit ______.
a)
Goes up.
b)
Goes down.
c)
Stays the same
25.
What are the two main parts that economics is divided into?
a)
Microeconomics and Macroeconomics
b)
Household economics and Business economics
c)
Demand and Supply
d)
Individual agents and Overall economy
26.
_____ focuses on individual agents within the economy.
a)
Microeconomics
b)
Macroeconomics
c)
Both of these
d)
Neither of these
27.
_____ looks at the economy as a whole.
a)
Microeconomics
b)
Macroeconomics
c)
Both of these
d)
Neither of these
28.
_____ looks at choices that are made in response to scarcity.
a)
Microeconomics
b)
Macroeconomics
c)
Both of these
d)
Neither of these
29.
_____ is mostly about money and finance.
a)
Microeconomics
b)
Macroeconomics
c)
Both of these
d)
Neither of these
30.
True or False. Microeconomics focuses on the actions of individual agents within the economy, such as households, workers, and businesses.
a)
True
b)
False
31.
True or False. Microeconomics and Macroeconomics are not separate subjects but rather complementary perspectives on the overall subject of the economy.
a)
True
b)
False
32.
True or False. Microeconomics and Macroeconomics are separate and unrelated subjects.
a)
True
b)
False
33.
What is the relationship between the macroeconomy and micro decisions of individuals and individual businesses?
a)
Micro decisions, like consumer confidence, impact the macroeconomy.
b)
Macroeconomy factors, like unemployment and interest rates, impact micro decisions.
c)
Both of these are true.
d)
Neither of these are true.
34.
True or False. Micro decisions of individual businesses are influenced by whether the macroeconomy is healthy.
a)
True
b)
False
35.
True or False. Firms may be more likely to hire workers if the overall economy is growing.
a)
True
b)
False
36.
Which of these is part of Macroeconomics?
a)
Individual budgets
b)
The law of demand and supply
c)
Overall economy-wide phenomena
d)
Prices charged by firms
37.
Which of these is NOT part of macroeconomics:
a)
Household budgets
b)
Inflation
c)
Economic growth
d)
Consumer Price Index (CPI)
e)
Gross domestic product (GDP)
38.
What does the term "demand" in economics refer to?
a)
The total number of units a producer is willing to supply
b)
The amount of a good or service consumers are willing and able to purchase at each price
c)
The price a buyer pays for a specific good or service
d)
The total number of units a consumer is willing to purchase
39.
How does a rise in the price of a good or service affect the quantity demanded?
a)
It has no effect on the quantity demanded.
b)
It increases the quantity demanded.
c)
It decreases the quantity demanded.
d)
It remains constant.
40.
How does a drop in the price of a good or service affect the quantity demanded?
a)
It has no effect on the quantity demanded.
b)
It increases the quantity demanded.
c)
It decreases the quantity demanded.
d)
It remains constant.
41.
How does a drop in the price of a good or service affect the quantity supplied?
a)
It has no effect on the quantity supplied.
b)
It increases the quantity supplied.
c)
It decreases the quantity supplied.
d)
It remains constant.
42.
How does an increase in the price of a good or service affect the quantity supplied?
a)
It has no effect on the quantity supplied.
b)
It increases the quantity supplied.
c)
It decreases the quantity supplied.
d)
It remains constant.
43.
What is the term that economists use to describe the positive relationship between price and quantity supplied?
a)
Law of demand
b)
Law of supply
c)
Inverse relationship
d)
Law of equilibrium
44.
What is the term that economists use to describe the negative relationship between price and quantity demanded?
a)
Law of demand
b)
Law of supply
c)
Inverse relationship
d)
Law of equilibrium
45.
True or False. The law of supply describes the positive relationship between price and quantity supplied.
a)
True
b)
False
46.
True or False. The law of demand describes the positive relationship between price and quantity supplied.
a)
True
b)
False
47.
True or False. A higher price leads to a higher quantity supplied, and a lower price leads to a lower quantity supplied.
a)
True
b)
False
48.
True or False. The laws of supply and demand assume that all other variables that affect supply and demand are held constant.
a)
True
b)
False
49.
What is the fundamental basis for demand?
a)
Price and quantity supplied
b)
Needs and wants, and ability to pay
c)
Total number of units that consumers would purchase
d)
Total number of units that producers are willing to supply
50.
Supply is ____ or ____ related to prices.
a)
Directly, positively
b)
Inversely, negatively
c)
Directly, negatively
d)
Inversely, positively
51.
Demand is ____ or ____ related to prices.
a)
Directly, positively
b)
Inversely, negatively
c)
Directly, negatively
d)
Inversely, positively
52.
True or False. If a consumer has a need or want for a product, that is “demand” for the product, even if the consumer cannot pay for it.
a)
True
b)
False
53.
Which of these markets do the theories of supply and demand apply to?
a)
Labor and financial services markets
b)
All of these
c)
Markets for luxury goods
d)
Markets for essential goods
54.
True or False. The theories of supply and demand apply not only to markets for goods but also to markets for things like labor and financial services.
a)
True
b)
False
55.
What is the term used in economics to measure the responsiveness of one variable to changes in another variable?
a)
Elasticity
b)
Marginal utility
c)
Total utility
d)
Quantity supplied
56.
_____ measures how much a change in the price of a good will change how much of that good is made and sold.
a)
Elasticity of supply
b)
Marginal utility
c)
Total utility
d)
Quantity supplied
e)
Elasticity of demand
57.
_____ measures how much a change in the price of a good will change how much of that good is bought.
a)
Elasticity of supply
b)
Marginal utility
c)
Total utility
d)
Quantity supplied
e)
Elasticity of demand
58.
What does “elasticity" of demand measure?
a)
The total satisfaction of a consumer
b)
The responsiveness of quantity demanded to changes in price
c)
The addition or subtraction in total utility
d)
The responsiveness of quantity supplied to changes in price
59.
What does “elasticity" of supply measure?
a)
The total satisfaction of a consumer
b)
The responsiveness of quantity demanded to changes in price
c)
The addition or subtraction in total utility
d)
The responsiveness of quantity supplied to changes in price
60.
How is total utility defined in economics?
a)
The quantity supplied in the market
b)
The responsiveness of quantity demanded to changes in price
c)
The total satisfaction of a consumer
d)
The addition or subtraction in total utility
61.
How is marginal utility defined in economics?
a)
The quantity supplied in the market
b)
The responsiveness of quantity demanded to changes in price
c)
The total satisfaction of a consumer
d)
The addition or subtraction in total utility
62.
What generally happens to marginal utility as the quantity increases?
a)
It remains constant.
b)
It increases.
c)
It decreases.
63.
What generally happens to total utility as the quantity increases?
a)
It remains constant.
b)
It increases.
c)
It decreases.
64.
What do we call the point where the supply curve crosses the demand curve?
a)
Equilibrium
b)
Marginal utility
c)
Total utility
d)
Elasticity
65.
The supply of people that have the skills to be world class soccer players is ___.
a)
high
b)
low
66.
The demand for people that have the skills to be world class soccer players is ___.
a)
high
b)
low
67.
Consumers are ____ of goods.
a)
buyers
b)
suppliers
68.
Employees are ____ of labor.
a)
buyers
b)
suppliers
69.
Employers are ____ of labor.
a)
buyers
b)
suppliers
70.
A demand for labor that is a consequence of the demand for something else, is called _____.
a)
derived demand
b)
integral demand
c)
artificial demand
d)
organic demand
71.
Pay for lawyers is high because:
a)
Supply is high.
b)
Supply is low.
c)
Demand is high.
d)
Demand is low.
72.
Pay for social workers is low because:
a)
Supply is high.
b)
Supply is low.
c)
Demand is high.
d)
Demand is low.
73.
True or False. When workers are paid less because of their race or gender, that is called wage discrimination.
a)
True
b)
False
74.
When there is only one company hiring, and workers are relatively immobile, that is called a _____.
a)
monopoly
b)
monopsony
c)
oligopoly
d)
franchise
75.
True or False. Unions restrain the trade for labor.
a)
True
b)
False
76.
True or False. Unions illegally restrain trade.
a)
True
b)
False
77.
True or False. The minimum wage results in wages that are below the equilibrium wage.
a)
True
b)
False
78.
For most people, the best way to increase lifetime earnings is to:
a)
Join a union.
b)
File an antitrust claim.
c)
Hope that congress increases the minimum wage
d)
Learn a profession that is in low supply and high demand.
79.
What is the opportunity cost of watching an EdPuzzle?
a)
The electricity required to power your computer.
b)
The subscription fees that are paid to EdPuzzle
c)
The value you would get from doing something else
d)
All of these
80.
Which two of these are fundamental assumptions of economics
a)
People have unlimited wants, but limited resources
b)
People have limited wants, but unlimited resources
c)
Everything has a cost
d)
Nobody gets anything for free
81.
What are "incentives"?
a)
External motivators that explain people's choices
b)
Internal motivators that explain people's choices
c)
Both of these
d)
Neither of these
82.
_____ looks at the economy as a whole
a)
Microeconomics
b)
Macroeconomics
c)
Both of these.
d)
Neither of these.
83.
___ looks at economic decisions by individual consumers and businesses.
a)
Microeconomics
b)
Macroeconomics
c)
Both of these.
d)
Neither of these.
84.
Equilibrium happens when quantity supplied ___ quantity demanded.
a)
is more than
b)
is less than
c)
equals
85.
At equilibrium, the market price ____.
a)
tends to go up
b)
tends to go down
c)
tends to stay the same
86.
Under the law of demand, as price goes up, the quantity demanded _____.
a)
tends to go up
b)
tends to go down
c)
tends to stay the same
87.
Under the law of demand, as price goes down, the quantity demanded _____.
a)
tends to go up
b)
tends to go down
c)
tends to stay the same
88.
Under the law of supply, as price goes down, the quantity supplied _____.
a)
tends to go up
b)
tends to go down
c)
tends to stay the same
89.
Under the law of supply, as price goes up, the quantity supplied _____.
a)
tends to go up
b)
tends to go down
c)
tends to stay the same
90.
Equalibrium happens at a price where the quantity demanded ____ the quantity supplied.
a)
is greater than
b)
is less than
c)
is the same as
91.
Surplus happens at a price where the quantity demanded ____ the quantity supplied.
a)
is greater than
b)
is less than
c)
is the same as
92.
Shortages happen at a price where the quantity demanded ____ the quantity supplied.
a)
is greater than
b)
is less than
c)
is the same as
93.
On a supply-demand graph, the Y axis shows the ____.
a)
price
b)
quantity
94.
On a supply-demand graph, the X axis shows the ____.
a)
price
b)
quantity
95.
Where the quantity demanded is greater than the quantity supplied, _____.
a)
we call that a shortage.
b)
we call that a surplus.
c)
there is a downward pressure on price.
d)
there is a upward pressure on price.
96.
Where the quantity demanded is less than the quantity supplied, _____.
a)
we call that a shortage.
b)
we call that a surplus.
c)
there is a downward pressure on price.
d)
there is a upward pressure on price.
Reset
