WorksheetsPhần 2 Introduction to Economics
Total questions: 50
Worksheet time: 27mins
Name
Class
Date
1.
An increase in price causes an increase in total revenue when
a)
All of the answer are possible.
b)
Demand is unit elastic.
c)
Demand is inelastic.
d)
Demand is elastic.
2.
An increase in technology for producing personal computers leads to
a)
A decrease in the supply of personal computers.
b)
A decrease in the demand for personal computers.
c)
An increase in the supply of personal computers.
d)
An increase in the demand for personal computers.
3.
An uptick in the cost of imported coffee appears
a)
In the consumer price index, but not in the gdp deflator.
b)
In neither the consumer price index nor in the gdp deflator.
c)
In the gdp deflator, but not in the consumer price index.
d)
In the consumer price index and in the gdp deflator.
4.
As a result of an increase in the supply of a good and no change in demand, the equilibrium quantity ______ and the equilibrium price ______.
a)
Increases; falls
b)
Increases; rises
c)
Decreases; rises
d)
Decreases; falls
5.
Decreases; falls
a)
Increasing the demand for The Alley milk-tea and therefore the price of The Alley milk-tea.
b)
Decreasing the demand for The Alley milk-tea and therefore the price of The Alley milk-tea.
c)
Increasing the supply of The Alley milk-tea and therefore the price of The Alley milk-tea.
d)
Increasing the demand for The Alley milk-tea and therefore the supply of The Alley milk-tea.
6.
Ben bakes bread, and Shawna knits sweaters. In which of the following cases is it impossible for both to benefit from trade?
a)
Both ben and shawna can benefit from trade in all cases.
b)
Ben is better than shawna at baking bread, and shawna is better at knitting sweaters.
c)
Ben is better at baking bread and knitting sweaters.
d)
Ben cannot knit sweaters, and shawna cannot bake bread.
7.
Caroline sharpens knives in her spare time for extra income. Buyers of her service are willing to pay $2.95 per knife for as many knives as Caroline is willing to sharpen. On a particular day, she is willing to sharpen the first knife for $2.00, the second knife for $2.25, the third knife for $2.75, and the fourth knife for $3.50. Assume Caroline is rational in deciding how many knives to sharpen. Her producer surplus is
a)
$1.30.
b)
$0.95.
c)
$1.15.
d)
$1.85
8.
Causes of market failure include:
a)
Externalities and market power.
b)
Externalities and foreign competition.
c)
Market power and incorrect forecasts of consumer demand.
d)
Incorrect forecasts of consumer demand and foreign competition.
9.
Changes in real GDP reflect
a)
Both changes in prices and changes in the amounts being produced.
b)
Neither changes in prices nor changes in the amounts being produced.
c)
Only changes in prices.
d)
Only changes in the amounts being produced.
10.
Consider an economy with the following data: Non-durable goods: 450; Durable goods: 650; Services: 550; Gross private domestic investment: 820; Government spending on goods and services: 1050; Exports: 80; Imports: 250; Depreciation: 100; NFI: 300 (Unit: Bil. USD). Calculate the value of net private domestic investment in billions of dollars.
a)
820.
b)
170.
c)
-170.
d)
720.
11.
Consider an economy with the following data: Non-durable goods: 450; Durable goods: 650; Services: 550; Gross private domestic investment: 820; Government spending on goods and services: 1050; Exports: 80; Imports: 250; Depreciation: 100; NFI: 300 (Unit: Bil. USD). Calculate the value of Gross National Product (GNP) in billions of dollars.
a)
3,690.
b)
3,650.
c)
3,350.
d)
3,550.
12.
Consider an economy with the following data: Non-durable goods: 500; Durable goods: 700; Services: 600; Gross private domestic investment: 950; Government spending on goods and services: 1100; Exports: 100; Imports: 300 (Unit: Bil. USD). Calculate the net exports value.
a)
1800.
b)
-200
c)
200.
d)
3650.
13.
Consumer surplus is
a)
Measured using the demand curve for a product.
b)
Does not reflect economic well-being in most markets.
c)
Closely related to the supply curve for a product.
d)
Represented by a rectangle on a supply-demand graph when the demand curve is a straight, downward-sloping line.
14.
Consumer surplus is equal to the
a)
Value to buyers - amount paid by buyers.
b)
Value to buyers - willingness to pay of buyers.
c)
Amount paid by buyers - costs of sellers.
d)
Value to buyers - costs of sellers.
15.
Countries that pursued outward-oriented policies in the 20th century
a)
Include Singapore, South Korea, and Taiwan.
b)
Experienced higher levels of political instability than did countries that pursued inward-oriented policies.
c)
Experienced lower rates of economic growth than did countries that pursued inward-oriented policies.
d)
All of the above are correct.
16.
Country A and country B are the same except country A has a capital stock of 5,000 a population of 12,000 and employment of 10,000. Country B has a capital stock of 8,000 and a population of 24,000 and employment of 20,000.
a)
Country A has a higher standard of living and country B will not catch up.
b)
Country B has a higher standard of living but country A will catch up.
c)
Country A has a higher standard of living but country B will catch up.
d)
Country B has a higher standard of living and country A will not catch up.
17.
Country A experienced a growth rate of real GDP per person of 4 percent per year throughout the 1900's. In view of other countries' experiences during this time country A's growth was
a)
Moderately low.
b)
Exceptionally low.
c)
Moderately high.
d)
Exceptionally high.
18.
Double counting can be avoided by
a)
including the value of intermediate goods in the current year.
b)
including the value of intermediate goods in the GNP but not in the GDP.
c)
not counting the value of intermediate goods in GDP.
d)
including the value of intermediate goods in the production year but not in the selling year of those goods.
19.
During an economic crisis or financial crisis, the type of unemployment that typically increases is:
a)
Frictional unemployment
b)
Cyclical unemployment
c)
Natural unemployment
d)
Structural unemployment
20.
Economic fluctuations are:
a)
Change in economic growth rate over time
b)
Change in domestic output over time
c)
Change in unemployment rate over time
d)
Change in inflation rate over time
21.
Economic growth is best defined as:
a)
An increase in the nation’s consumption.
b)
An increase in the nation’s savings rate.
c)
An increase in the nation’s output (real GDP) over time.
d)
An increase in the nation’s population.
22.
Economic models
a)
Are useful because they do not omit any real-world details.
b)
Are usually composed of diagrams and equations.
c)
Are usually plastic representations of the economy.
d)
Are not useful because they omit many real-world details.
23.
Economics deals primarily with the concept of
a)
Power.
b)
Scarcity
c)
Change.
d)
Poverty.
24.
Economics deals primarily with the concept of
a)
Banking.
b)
Poverty.
c)
Scarcity.
d)
Money.
25.
Economics is the study of:
a)
The role of money in markets.
b)
How society uses limited resources.
c)
How government officials decide which goods and services are produced.
d)
How to invest in the stock market.
26.
Economists are particularly adept at understanding that people respond to
a)
Laws.
b)
Punishments more than rewards.
c)
Incentives.
d)
Rewards more than punishments.
27.
Economists, like mathematicians, physicists, and biologists,
a)
Try to address their subject with a scientist's objectivity.
b)
Make use of the scientific method.
c)
Devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.
d)
All of the above are correct.
28.
Evidence from hyperinflation episodes shows that money growth and inflation
a)
Are positively related, consistent with the quantity theory of money.
b)
Have no clear relationship, inconsistent with the quantity theory of money.
c)
Have no clear relationship, consistent with the quantity theory of money.
d)
Are positively related, inconsistent with the quantity theory of money.
29.
Exports equal
a)
net exports + imports.
b)
net exports - imports.
c)
mports - net exports.
d)
imports + (exports + imports).
30.
Following a prolonged power outage, the price of flashlights normally increases significantly. If cities had passed laws prohibiting price increases for flashlights, during power outages such laws would most likely
a)
Create a shortage of flashlights.
b)
Make flashlights more available.
c)
Shift the supply curve for flashlights to the left.
d)
Shift the demand curve for flashlights to the right.
31.
For a competitive market, sellers must accept
a)
Whatever price the buyers offer
b)
Prices set by the government
c)
The price determined by the market
d)
Prices based on their costs
32.
For a particular product, an effective price ceiling results in:
a)
Quantity demanded greater than quantity supplied.
b)
Demand equal to supply.
c)
Quantity demanded equal to quantity supplied.
d)
Quantity supplied greater than quantity demanded.
33.
For a particular product, an effective price floor results in:
a)
Demand equal to supply.
b)
Quantity demanded greater than quantity supplied.
c)
Quantity supplied greater than quantity demanded
d)
Quantity demanded equal to quantity supplied.
34.
For demand function QD = 2400 - 100P and supply function QS = 300P + 1600. Market surplus at:
a)
P = 5
b)
P = 1
c)
P = 0.5
d)
P = 2
35.
For demand function QD = 2400 - 100P and supply function QS = 300P + 1600. Market surplus at:
a)
P = 2
b)
P = 1
c)
P = 0.5
d)
P = 5
36.
For you to be considered out of the labor force, you can be
a)
any of the above.
b)
a full-time volunteer.
c)
a full-time student.
d)
a full-time retiree.
37.
Frictional unemployment refers to:
a)
Unemployment due to changes in the structure of the economy.
b)
Unemployment due to the time it takes workers to find a job.
c)
Unemployment due to economic downturns.
d)
Unemployment due to workers’ lack of skills.
38.
GDP does not reflect
a)
The value of leisure.
b)
The value of goods and services produced at home.
c)
The quality of the environment.
d)
All of the above are correct.
39.
Generally, a firm is more willing and able to increase quantity supplied in response to a price change when
a)
The relevant time period is short rather than long.
b)
The relevant time period is long rather than short.
c)
The firm is experiencing capacity problems.
d)
Supply is inelastic.
40.
Given the demand function Q = 200 - 25P. Consumer surplus CS at P = $2 is:
a)
$ 450
b)
$ 150
c)
$ 900
d)
$ 300
41.
Given the demand function Q = 200 - 25P. Consumer surplus CS at P = $2 is:
a)
$ 300
b)
$ 900
c)
$ 450
d)
$ 150
42.
Given the supply function Q = 40P - 160. Producer surplus PS at P = $10 is:
a)
$ 720
b)
$ 250
c)
$ 7200
d)
$ 3600
43.
Given the supply function Q = 40P - 160. Producer surplus PS at P = $10 is:
a)
$ 7200
b)
$ 3600
c)
$ 250
d)
$ 720
44.
GNP differs from GDP in that GNP
a)
excludes foreign investment income.
b)
ncludes government expenditures.
c)
considers imports and exports.
d)
is calculated based on the total value of all goods and services produced by a country's residents.
45.
GNP is a more comprehensive measure of a country's economic output because it
a)
accounts for the value of goods and services produced within a country's borders.
b)
excludes imports and exports.
c)
includes the total income earned by a country's residents, regardless of location.
d)
considers only domestic production.
46.
Government purchases include spending on goods and services by
a)
Federal and state governments, but not by local governments.
b)
Federal, state, and local governments, as well as household spending by employees of those governments.
c)
Federal, state, and local governments.
d)
The federal government, but not by state or local governments.
47.
Gross national product (GNP) includes
a)
all final goods and services produced within a country's borders.
b)
government spending on goods and services.
c)
imports and exports.
d)
the total value of all goods and services produced by a country's residents, regardless of location.
48.
Ham and eggs are complements. If the price of ham rises, the demand for eggs will
a)
Increase or decrease but the demand curve for ham will not change.
b)
Decrease and the demand curve for ham will shift rightward.
c)
Not change but there will be a movement along the demand curve for eggs.
d)
Decrease and the demand curve for eggs will shift leftward.
49.
Hamburgers and french fried headsets are complements. An increase in the price of french fried would cause which of the following in the market for hamburgers?
a)
The equilibrium price and quantity of hamburgers would decrease.
b)
The equilibrium price and quantity of hamburgers would increase.
c)
The equilibrium price of hamburgers would decrease and the equilibrium quantity would increase.
d)
The equilibrium price of hamburgers would increase and the equilibrium quantity would decrease.
50.
High-school athletes who skip college to become professional athletes
a)
Usually do so because they cannot get into college.
b)
Understand that the opportunity cost of attending college is very high.
c)
Are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes.
d)
Obviously do not understand the value of a college education.
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