WorksheetsPhần 3 Introduction to Economics
Total questions: 50
Worksheet time: 38mins
Name
Class
Date
1.
Higher inflation causes
a)
firms to change prices less often and reduces relative-price variability.
b)
firms to change prices less often and increases relative-price variability.
c)
firms to change prices more often and increases relative-price variability.
d)
firms to change prices more often and reduces relative-price variability.
2.
How can a point outside the production possibilities frontier become feasible?
a)
By a decrease in consumer demand or preferences (3)
b)
By an improvement in technology or productivity (2)
c)
By an increase in the quantity or quality of resources (1)
d)
(1) and (2) are correct
3.
How do incentives affect people’s behavior?
a)
Incentives affect people’s behavior by making some actions more or less desirable
b)
Incentives affect people’s behavior only if they are strong enough
c)
Incentives do not affect people’s behavior, only preferences do
d)
Incentives affect people’s behavior only if they are monetary
4.
How do intermediate goods differ from final goods in the calculation of GDP?
a)
They are produced for personal use
b)
They are not included in the final GDP calculation
c)
They contribute directly to economic growth
d)
They are considered legal goods
5.
How do you calculate the price elasticity of demand using the midpoint method?
a)
By dividing the change in quantity demanded by the average quantity demanded and dividing the change in price by the average price (2)
b)
Both (1) and (2)
c)
By dividing the percentage change in quantity demanded by the percentage change in price (1)
d)
By dividing the percentage change in price by the percentage change in quantity demanded (2)
6.
How do you calculate the price elasticity of demand using the midpoint method?
a)
By dividing the percentage change in quantity demanded by the percentage change in price (1)
b)
Both (1) and (2)
c)
By dividing the percentage change in price by the percentage change in quantity demanded (2)
d)
By dividing the change in quantity demanded by the average quantity demanded and dividing the change in price by the average price (2)
7.
How do you write a linear demand function? (Slope: b)
a)
Qd = b - aP
b)
Qd = a + bP
c)
Qd = a - bP
d)
Qd = b + aP
8.
How do you write a linear supply function? (Slope: d)
a)
Qs = c - dP
b)
Qs = d - cP
c)
Qs = c + dP
d)
Qs = d + cP
9.
How does a price ceiling affect consumer surplus and producer surplus?
a)
It decreases both consumer surplus and producer surplus
b)
It increases both consumer surplus and producer surplus
c)
It increases consumer surplus and decreases producer surplus
d)
It decreases consumer surplus and increases producer surplus
10.
How does a price ceiling affect consumer surplus and producer surplus?
a)
It decreases consumer surplus and increases producer surplus
b)
It decreases both consumer surplus and producer surplus
c)
It increases consumer surplus and decreases producer surplus
d)
It increases both consumer surplus and producer surplus
11.
How does a price floor affect consumer surplus and producer surplus?
a)
It decreases consumer surplus and increases producer surplus
b)
It decreases both consumer surplus and producer surplus
c)
It increases consumer surplus and decreases producer surplus
d)
It increases both consumer surplus and producer surplus
12.
How does a price floor affect consumer surplus and producer surplus?
a)
It decreases consumer surplus and increases producer surplus
b)
It increases consumer surplus and decreases producer surplus
c)
It decreases both consumer surplus and producer surplus
d)
It increases both consumer surplus and producer surplus
13.
How does a tax affect consumer surplus and producer surplus?
a)
It decreases consumer surplus and increases producer surplus
b)
It increases both consumer surplus and producer surplus
c)
It increases consumer surplus and decreases producer surplus
d)
It decreases both consumer surplus and producer surplus
14.
How does a tax affect consumer surplus and producer surplus?
a)
It increases both consumer surplus and producer surplus
b)
It increases consumer surplus and decreases producer surplus
c)
It decreases consumer surplus and increases producer surplus
d)
It decreases both consumer surplus and producer surplus
15.
How does trade affect points on the production possibilities frontier?
a)
All of the answers are correct
b)
Trade allows producers to produce beyond their production possibilities frontier by pooling their resources and technology with other producers
c)
Trade allows producers to move along their production possibilities frontier by adjusting their output mix according to market prices and demand
d)
Trade allows producers to consume beyond their production possibilities frontier by specializing in their comparative advantage and exchanging goods with other producers
16.
How is the velocity of money defined?
a)
The rate at which the Fed injects money into the economy.
b)
The average number of times a dollar is spent in a year.
c)
The money supply divided by nominal GDP.
d)
The same metric as the long-run growth rate of the money supply.
17.
How often does the Federal Open Market Committee convene?
a)
Every three weeks
b)
Every 6 months
c)
Every 3 months
d)
Every six weeks
18.
If a 30 percent change in price causes a 15 percent change in quantity supplied, then the price elasticity of supply is
a)
2 and supply is inelastic.
b)
2 and supply is elastic.
c)
0.5 and supply is elastic.
d)
0.5 and supply is inelastic
19.
If a bank allocates $100 of its excess reserves to issue a new loan when the reserve requirement is 10 percent, this action alone initially causes the money supply to
a)
Decrease by $100 while wealth decreases by $100.
b)
Increase by $100 and wealth increase by $100.
c)
Increase by $100 while wealth does not change.
d)
Increase by $100 and wealth decrease by $100.
20.
If a bank’s reserve ratio is 10 percent and it holds $2,000 in deposits, its reserves equal
a)
$400.
b)
$200.
c)
$1,800.
d)
$20.
21.
If a BTS loses their job because their industry is in decline, this is an example of:
a)
Natural unemployment
b)
Structural unemployment
c)
Cyclical unemployment
d)
Frictional unemployment
22.
If a country's GDP doubles in 10 years, what was its approximate annual growth rate according to the Rule of 70?
a)
0.1
b)
0.07
c)
0.14
d)
0.05
23.
If a country's GDP doubles in 14 years, what was its approximate annual growth rate according to the Rule of 70?
a)
0.1
b)
0.05
c)
0.07
d)
0.14
24.
If a country's GDP is higher than its GNP, it indicates that
a)
the country's residents are producing more abroad than foreign residents are producing domestically.
b)
the country's residents are producing less abroad than foreign residents are producing domestically.
c)
the country has a trade deficit.
d)
the country has a trade surplus.
25.
If a gardener must give up 14 bushels of corn to get 5 bushels of green beans, then the opportunity cost of 1 bushel of green beans is
a)
2.8 bushels of corn.
b)
0.36 bushel of corn.
c)
70 bushels of corn.
d)
14 bushels of corn.
26.
If a seller in a competitive market charges more than the market price, buyers will
a)
Buy from other sellers
b)
Reduce their demand
c)
Continue purchasing from that seller at a lower price
d)
Buy from that seller
27.
If a U.S. citizen buys a television made in Korea by a Korean firm, then
a)
U.S. net exports are unaffected and U.S. GDP decreases.
b)
U.S. net exports are unaffected and U.S. GDP is unaffected.
c)
U.S. net exports decrease and U.S. GDP is unaffected.
d)
U.S. net exports decrease and U.S. GDP decreases.
28.
If an French company like YSL produces products in China, the value is included in french ________ and in chinese________.
a)
GNP; GNP
b)
GDP; GDP
c)
GDP; GNP
d)
GNP; GDP
29.
If both demand and supply increase, what will be the effect on the equilibrium price and quantity?
a)
Both the price and the quantity will increase.
b)
The price will rise but the quantity could either increase, decrease, or remain the same.
c)
The price will fall but the quantity will increase.
d)
The quantity will increase but the price could either rise, fall, or remain the same.
30.
If Brazil buys $100 million of tractors from the U.S., U.S. net exports will:
a)
Increase by $100 million
b)
Decrease by $100 million
c)
Increase by $200 million
d)
Remain unchanged
31.
If gross investment in 2008 is $750 billion and depreciation in 2008 is $850 billion, net investment in 2008 is
a)
-$1,600 billion.
b)
-$800 billion.
c)
-$50 billion.
d)
-$100 billion.
32.
If income rises, the demand curve for a normal good will
a)
Stay the same
b)
Become steeper
c)
Shift to the right
d)
Shift to the left
33.
If Iowa’s opportunity cost of corn is lower than Oklahoma’s opportunity cost of corn, then
a)
Iowa has a comparative advantage in the production of corn.
b)
Oklahoma should produce just enough corn to satisfy its own residents’ demands.
c)
Iowa should import corn from oklahoma.
d)
Iowa has an absolute advantage in the production of corn.
34.
If Jim’s opportunity cost of producing baseball bats is lower than Tom’s, then
a)
Jim has a comparative advantage in the production of baseball bats.
b)
Jim should not produce baseball bats.
c)
Tom must have an absolute advantage in the production of baseball bats.
d)
Tom has a comparative advantage in the production of baseball bats.
35.
If net investment in 2007 is $350 billion and gross investment in 2007 is $500 billion, depreciation in 2007 is
a)
$250 billion.
b)
$175 billion.
c)
$0.7 billion.
d)
$150 billion.
36.
If net investment is zero, then
a)
depreciation is zero.
b)
gross investment is greater than depreciation.
c)
gross investment is less than depreciation.
d)
gross investment equals depreciation.
37.
If nominal GDP is $12 trillion and real GDP is $10 trillion, then the GDP deflator is
a)
83.33, and this indicates that the price level has increased by 83.33 percent since the base year.
b)
120, and this indicates that the price level has increased by 20 percent since the base year.
c)
83.33, and this indicates that the price level has decreased by 16.67 percent since the base year.
d)
120, and this indicates that the price level has increased by 120 percent since the base year.
38.
If Okun’s Law holds true, a 3% increase in real GDP growth would lead to:
a)
An increase in the unemployment rate by 6%.
b)
An increase in the unemployment rate by 1.5%.
c)
A decrease in the unemployment rate by 6%.
d)
A decrease in the unemployment rate by 1.5%.
39.
If Okun’s Law is applied, a 4% decrease in real GDP growth would likely result in:
a)
A decrease in the unemployment rate by 2%.
b)
An increase in the unemployment rate by 2%.
c)
A decrease in the unemployment rate by 8%.
d)
An increase in the unemployment rate by 8%.
40.
If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the
a)
Growth rate of real GDP per person.
b)
Growth rate of real GDP.
c)
Level of real GDP.
d)
Growth rate of nominal GDP.
41.
If real GDP of an economy in 2020 is 1000 billion VND and in 2021 it is 1100 billion VND, then the economic growth rate of this economy in 2021 is:
a)
0.1
b)
0.11
c)
1
d)
1.1
42.
If real GDP of an economy in 2020 is 1000 billion VND and in 2021 it is 900 billion VND, then the economic growth rate of this economy in 2021 is:
a)
-1
b)
-0.1
c)
-0.11
d)
-1.1
43.
If real GDP of an economy in 2020 is 1000 billion VND and real GDP of this economy in 2030 is 2000 billion VND, then the average economic growth rate of the economy in the period from 2020 to 2030 are:
a)
0.07
b)
7.37%
c)
7.27%
d)
7.18%
44.
If real GDP of an economy in 2020 is 1000 billion VND and the average economic growth rate of this economy in the period from 2020 to 2025 is 5%, then real GDP of this economy in 2025 is:
a)
1050 billion VND
b)
1300 billion VND
c)
1500 billion VND
d)
1276.28 billion VND
45.
If Shawn can produce donuts at a lower opportunity cost than Sue, thenIf Shawn can produce donuts at a lower opportunity cost than Sue, then
a)
Sue has a comparative advantage in the production of donuts.
b)
Shawn is capable of producing more donuts than sue in a given amount of time.
c)
Shawn has a comparative advantage in the production of donuts.
d)
Shawn should not produce donuts.
46.
If Spencer buys 6 glasses of lemonade at $1.00 per glass and 4 glasses at $1.50 per glass, Spencer’s demand shows
a)
A change in market equilibrium
b)
A shift in demand
c)
A movement along the demand curve
d)
An increase in supply
47.
If the cross-price elasticity of two goods is negative, then those two goods are:
a)
Necessities.
b)
Inferior goods.
c)
Complements.
d)
Normal goods.
48.
If the cross-price elasticity of two goods is negative, then those two goods are:
a)
Necessities.
b)
Complements.
c)
Inferior goods.
d)
Normal goods.
49.
If the cross-price elasticity of two goods is positive, then those two goods are:
a)
Substitutes.
b)
Complements.
c)
Necessities.
d)
Inferior goods.
50.
If the cross-price elasticity of two goods is positive, then those two goods are:
a)
Complements.
b)
Necessities.
c)
Substitutes.
d)
Inferior goods.
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