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Phần 1 Introduction to Economics

Total questions: 50

Worksheet time: 37mins

Name
Class
Date
1.

A bakery would be willing to supply 500 bagels per day at a price of $0.50 each. At a price of $0.80, the bakery would be willing to supply 1,100 bagels. Using the midpoint method, the elasticity of supply for bagels is about

a)

1.24.

b)

0.62.

c)

0.77.

d)

1.63.

2.

A bakery would be willing to supply 500 bagels per day at a price of $0.50 each. At a price of $0.80, the bakery would be willing to supply 1,100 bagels. Using the midpoint method, the elasticity of supply for bagels is about

a)

1.63.

b)

0.77.

c)

0.62.

d)

1.24.

3.

A certain cowboy spends 10 hours per day mending fences and herding cattle. For him, a graph that shows his various possible mixes of output is called his

a)

Trade-off curve.

b)

Consumption possibilities frontier.

c)

Line of tastes.

d)

Production possibilities frontier.

4.

A change in ______ leads to a change in demand that causes a ______.

a)

Income or price of other goods; movement along the demand curve

b)

Income or price of the original produce; movement along the demand curve

c)

Income or price of other goods; shift in the demand curve

d)

The price of the original product; shift of the demand curve

5.

A change in the ______ of a good or service leads to a change in ______ that leads to a ______.

a)

Supply; demand; change in price

b)

Price; quantity demanded; movement along the demand curve

c)

Quantity; supply; change in demand

d)

Demand; quantity demanded; change in supply

6.

A circular-flow diagram is a model that

a)

Helps to explain how the economy is organized (2).

b)

(1) and (2) are incorrect.

c)

Helps to explain how participants in the economy interact with one another (1).

d)

(1) and (2) are correct.

7.

A country's GDP would be affected by

a)

income earned by the country's residents abroad.

b)

changes in exchange rates.

c)

ncome earned by foreign residents within the country.

d)

government spending on foreign aid.

8.

A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes.

a)

Increases, and the consumer surplus in the market for red wine decreases.

b)

Increases, and the consumer surplus in the market for red wine increases.

c)

Decreases, and the consumer surplus in the market for red wine decreases.

d)

Decreases, and the consumer surplus in the market for red wine increases.

9.

A German citizen buys an automobile produced in the United States by a Japanese company. As a result,

a)

U.S. net exports and GDP are unaffected, Japanese GNP increases, and german net exports, GNP, and GDP decrease.

b)

U.S. net exports increase, U.S. GDP is unaffected, Japanese GNP increases, german net exports decrease, and German GNP and GDP are unaffected.

c)

U.S. net exports and GDP increase, Japanese GNP increases, German net exports decrease, and German GNP and GDP are unaffected.

d)

U.S. net exports and GDP increase, Japanese GNP increases, German net exports decrease, German gnp is unaffected, and German GDP decreases.

10.

A group of buyers and sellers of a good or service is called a

a)

Coalition

b)

Market

c)

Economy

d)

Competition

11.

A legal maximum price at which a good can be sold is a price

a)

Stabilization.

b)

Floor.

c)

Support.

d)

Ceiling.

12.

A legal maximum price at which a good can be sold is a price

a)

Ceiling.

b)

Support.

c)

Stabilization.

d)

Floor.

13.

A legal minimum price at which a good can be sold is

a)

Called a price ceiling.

b)

Usually intended to enhance efficiency in a market.

c)

Called a price floor.

d)


Exemplified by rent-control laws.

14.

A legal minimum price at which a good can be sold is

a)

Called a price floor.

b)

Called a price ceiling.

c)

Usually intended to enhance efficiency in a market.

d)

Exemplified by rent-control laws.

15.

A movement along a demand curve is caused by

a)

A shift in supply

b)

A change in income

c)

A change in preferences

d)

A change in the price of the good

16.

A nation's standard of living is best measured by its

a)

Nominal GDP per person.

b)

Real GDP per person.

c)

Real GDP.

d)

Nominal GDP.

17.

A person who quits their job to look for a better one is considered:

a)

Frictionally unemployed

b)

Structurally unemployed

c)

Cyclically unemployed

d)

Not unemployed

18.

A price above the equilibrium price results in

a)

A surplus.

b)

Excess demand.

c)

A further price rise.

d)

A shortage.

19.

A price below the equilibrium price results in

a)


A surplus.

b)

A shortage.

c)

Excess supply.

d)

A further price fall.

20.

A price ceiling will be binding only if it is set

a)

Above equilibrium price.

b)

Equal to equilibrium price.

c)

Below equilibrium price.

d)

None of the above; a price ceiling is never binding.

21.

A price ceiling will be binding only if it is set

a)

None of the above; a price ceiling is never binding.

b)

Above equilibrium price.

c)

Below equilibrium price.

d)

Equal to equilibrium price.

22.

A production possibilities frontier is bowed outward when

a)

An economy is self-sufficient.

b)

The rate of tradeoff between goods is constant.

c)

The more resources the economy uses to produce one good, the fewer resources it has for the other good.

d)

The rate of tradeoff depends on how much of each good is produced.

23.

A recent college graduate who is looking for their first job is considered:

a)

Cyclically unemployed

b)

Frictionally unemployed

c)

Not unemployed

d)

Structurally unemployed

24.

A rightward shift in the demand curve indicates

a)

An increase in demand

b)

No change in demand

c)

A decrease in demand

d)

A movement along the curve

25.

A seller's opportunity cost measures the

a)

Value of everything she must give up to produce a good.

b)

Out of pocket expenses to produce a good but not the value of her time.

c)

Consumer surplus.

d)

Amount she is paid for a good minus her cost of providing it.

26.

A severe drought has damaged this year’s lettuce crop. The initial effect on the lettuce market is a

a)

Decrease in the demand for lettuce.

b)

Decrease in the supply of lettuce.

c)

Rightward movement along the demand curve for lettuce.

d)

Decrease in both the demand and supply of lettuce.

27.

A tax of $0.10 per Snickers bar on the sellers of Snickers will cause the

a)

Supply curve for Snickers to shift down by $0.05.

b)

Demand curve for Snickers to shift up by $0.10.

c)

Supply curve for Snickers to shift up by $0.10.

d)

Supply curve for Snickers to shift down by $0.10.

28.

A tax of $0.10 per Snickers bar on the sellers of Snickers will cause the

a)

Demand curve for Snickers to shift up by $0.10.

b)

Supply curve for Snickers to shift down by $0.05.

c)

Supply curve for Snickers to shift down by $0.10.

d)

Supply curve for Snickers to shift up by $0.10.

29.

A transfer payment is

a)

A payment that is automatically transferred from your bank account to pay a bill or some other obligation.

b)

A form of government spending that is not made in exchange for a currently produced good or service.

c)

A payment for moving expenses a worker receives when he or she is transferred by an employer to a new location.

d)

The benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure.

30.

Absolute advantage is found by comparing different producers’

a)

Payments to land, labor, and capital.

b)

Input requirements per unit of output.

c)

Opportunity costs.

d)

Locational and logistical circumstances.

31.
According to Okun’s Law, a 1% increase in the unemployment rate would correspond to a __________ decrease in real GDP growth.
a)
0.5%
b)
1.5%
c)
0.02
d)
0.01
32.
According to the law of demand, quantity demanded increases as ______, ceteris paribus.
a)
Prices fall
b)
Demand decreases
c)
Prices rise
d)
Demand increases
33.
According to the law of supply,
a)
The supply curve for a good is upward-sloping.
b)
When the price of a good falls, the quantity supplied of the good rises.
c)
All of the answers are correct.
d)
The quantity supplied of a good is negatively related to the price of the good.
34.
According to the Rule of 70, if a country’s per capita GDP grows at a rate of 2% per year, approximately how many years will it take for per capita GDP to double?
a)
35 years
b)
70 years
c)
100 years
d)
50 years
35.
An American retailer purchased 100 pairs of shoes from a company in Denmark in the second quarter of 2010 but does not sell them to a consumer until the third quarter of 2010. Which of the following components of U.S. GDP is affected by this transaction in the third quarter of 2010?
a)
Only consumption and investment
b)
Consumption, investment and imports
c)
Only consumption and imports
d)
Only investment and imports
36.
An example of a market economy in real life is what?
a)
The Democratic People’s Republic of Korea
b)
The United States of America
c)
The Islamic Republic of Iran
d)
The People’s Republic of China
37.
An example of a market equilibrium in real life is what?
a)
The price and quantity of books sold at a bookstore
b)
All of the answers are correct
c)
The price and quantity of gasoline sold at a gas station
d)
The price and quantity of coffee sold at a café
38.
An example of a market failure in real life is what?
a)
Trade between buyers and sellers that generates mutual benefits
b)
Innovation from entrepreneurs that creates new products and services
c)
Competition from foreign firms that lowers the profits of domestic firms
d)
Pollution from factories that harms the environment and public health
39.
An example of a positive incentive in real life is what?
a)
A fine for speeding on the highway
b)
A grade reduction for late submission of an assignment
c)
A jail sentence for committing a crime
d)
A tax refund for filing your taxes on time
40.
An example of a price floor is:
a)
The regulation of gasoline prices in the U.S. in the 1970s.
b)
Any restriction on price that leads to a shortage.
c)
The minimum wage.
d)
Rent control.
41.
An example of a price floor is:
a)
The regulation of gasoline prices in the U.S. in the 1970s.
b)
Any restriction on price that leads to a shortage.
c)
Rent control.
d)
The minimum wage.
42.
An example of a price that changes only infrequently is the price of
a)
Stocks on the New York stock exchange.
b)
Residential real estate.
c)
Crude oil.
d)
Magazines sold at newsstands.
43.
An example of an effective price ceiling would be the government setting the price of wheat at per bushel when the market price is at $4.25 per bushel.
a)
$7.75
b)
$5.00
c)
$3.75
d)
$12.00
44.
An example of an effective price ceiling would be the government setting the price of wheat at per bushel when the market price is at $4.25 per bushel.
a)
$12.00
b)
$5.00
c)
$3.75
d)
$7.75
45.
An example of an increase in demand in real life is what?
a)
An increase in income leads to more demand for luxury goods
b)
All of the above
c)
An increase in temperature leads to more demand for ice cream
d)
An increase in population leads to more demand for housing
46.
An example of an increase in supply in real life is what?
a)
All of the answers are correct
b)
A decrease in input costs leads to more supply of wheat
c)
An improvement in technology leads to more supply of smartphones
d)
A decrease in taxes leads to more supply of gasoline
47.
An example of consumer surplus and producer surplus in real life is what?
a)
The difference between your reservation price and the actual price you pay for a haircut, and the difference between the cost of providing the haircut and the actual revenue received by the barber
b)
The difference between your reservation price and the actual price you pay for an airline ticket, and the difference between the cost of operating the flight and the actual revenue received by the airline
c)
The difference between your reservation price and the actual price you pay for a concert ticket, and the difference between the cost of producing the concert and the actual revenue received by the producer
d)
All of the answers are correct
48.
An example of normative economics in real life is what?
a)
A model by an economist that simulates the effects of fiscal stimulus on output
b)
A study by a university that measures the elasticity of demand for gasoline
c)
A data set by a government agency that shows the income distribution of households
d)
A survey by a media outlet that asks people their opinions on health care reform
49.
An example of positive economics in real life is what?
a)
A proposal by a think tank that advocates for a carbon tax to mitigate climate change
b)
A report by the World Bank that analyzes the impact of COVID-19 on global poverty
c)
A petition by a social movement that demands debt relief for developing countries
d)
A speech by a politician that argues for free trade agreements with other countries
50.
An increase in capital will increase real GNP per person
a)
Less in a poor country than a rich country. The increase in real gnp per person will be larger if the addition to capital is from domestic rather than foreign investment.
b)
More in a poor country than a rich country. The increase in real gnp per person will be larger if the addition to capital is from domestic rather than foreign investment.
c)
More in a poor country than a rich country. The increase in real gnp per person will be larger if the addition to capital is foreign rather than from domestic investment.
d)
Less in a poor country than a rich country. The increase in real gnp per person will be larger if the addition to capital is foreign rather than from domestic investment.