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WorksheetsY1 S1 PE
Total questions: 27
Worksheet time: 38mins
A family consumes more goods and services by specializing in the production of only one good
Principle 3: Rational people think at the margin
Principle 5: Trade can make everyone better off
Principle 1: People face tradeoffs
Principle 9: Prices rise when the government prints too much money
Bill buys a home because he is confident that he is protected by property rights laws
Principle 7: governments can sometimes improve market outcomes
Principle 10: Society faces a short-run tradeoff between inflation and unemployment
Principle 1: People face tradeoffs
Principle 4: People face incentives
Jasmine wants to go to the movies with her friends, but she has homework due tonight. She must give up going to the movies if she wants to finish her homework.
Principle 7: the government can sometimes improve market outcomes
Principle 1: people face tradeoffs
Principle 2: the cost of something is what you give up to get it
Principle 6: Markets are usually a good way of organizing economic activity
A t-shirt that Katie really wants is on sale for 10% off. She wouldn't have bought it at its original price, but now that it is 10% off she buys it.
Principle 1: People face tradeoffs
Principles 9: Prices rise when the government prints too much money
Principle 3: Rational people think at the margin
Principle 4: People respond to incentives
When you join the economics association on campus, you get a free t-shirt and some pizza. But, in order to get those free things you must give up your time for club meetings.
Principle 1: People face tradeoffs
Principle 10: Society faces a short-run tradeoff between inflation and unemployment
Principle 5: Trade can make everyone better off
Principle 3: Rational people think at the margin
Emily considers how much more time she would have to spend studying to increase her midterm grade by 2%
Principle 7: Governments can sometimes improve market outcomes
Principle 2: the cost of something is what you give up to get it
Principle 3: Rational people think at the margin
Principle 8: A country's standard of living depends on its productivity
The United States is more productive than Australia, which means that the United States is a wealthier country.
Principle 1: People face tradeoffs
Principle 7: Governments can sometimes improve market outcomes
Principle 8: A country's standard of living depends on its ability to produce goods and services
Principle 9: Prices rise when the government prints too much money
The Scottish government decides to print more money, and the price of milk rices from $1 a gallon to $4 a gallon
Principle 5: Trade can make everyone better off
Principle 2: The cost of something is what you give up to get it
Principle 4: People respond to incentives
Principle 9: Prices rise when the government prints too much money
Adam Smith said that the "invisible hand" controls the market and creates the optimal outcome
Principle 1: people face tradeoffs
Principle 3: Rational people think at the margin
Principle 6: Markets are usually a good way of organizing economic activity
Principle 9: Prices rise when the government prints too much money
The government prints more money to stimulate the economy and create more jobs, but the price of milk increases from $1 to $4.
Principle 9: Prices rise when the government prints too much money
Principle 5: Trade can make everyone better off
Principle 10: Society faces a short run tradeoff between inflation and unemployment
Principle 3: Rational people think at the margin
Scarcity is a problem:
that only poor people face.
because human wants are limited while resources are unlimited.
because human wants are unlimited while resources are limited.
only in third world countries.
Labour, land and capital are called:
goods and services.
entrepreneurship.
outputs.
factors of production.
Principle #3 People think at
(a)
The graph shows the impact of Tax on the market equilibrium. How much is the tax revenue? and how much is born by the producers and how much by the consumers?
80, 40, 40
80,80,0
80,0,80
40, 40, 80
The price of good X falls and the demand for good Y decreases. We can conclude that:
X is an inferior good
X and Y are substitutes.
X and Y are complements.
X and Y are independent of each other.
Suppose we observe a rise in the price of good A and an increase in the quantity of good A bought and sold. Which one of the following is a likely explanation?
The supply of A increased.
The supply of A decreased.
The demand for A decreased.
The demand for A increased.
Which of the following situations describes the greatest market power?
Subaru’s impact on the price of cars
a farmer's impact on the price of corn
Microsoft's impact on the price of desktop operating systems
a student's impact on college tuition
Which of the following is NOT one of the big economic questions?
What to produce?
How to produce?
Why to produce?
For whom to produce?
In socialist economic system, the prices of goods and services are determined by __________.
Individuals
Government
Market forces
Demand and supply
A new type of television set uses 3-D images. many stores will have large quantities of the older style televisions. What will happen to the price of these older televisions?
Which of the following is NOT an example of a service?
Plumber
Waitress
Car
Nurse
A business:
Produces goods and/or services for consumers
Is the final user of goods and services produced in an economy
Is the organiser of the exchange of goods and services for money
Provides goods and/or services in order to make a profit
The economic problem is one of:
Limited wants and needs
Unlimited wants and unlimited needs
Unlimited wants and limited resources
Limited wants and unlimited needs
A want is...
A non-essential good or service
A resource needed for survival
An essential good or service
All of the above
