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WorksheetsEconomics Quiz (4)
Total questions: 20
Worksheet time: 10mins
What do human wants become when backed by purchasing power?
Needs
Wants
Demands
Desires
What does the law of demand state?
Demand is unrelated to price
Demand increases with price
Demand decreases with price
Demand remains constant with price
What is a Giffen good?
A good that increases in demand when its price rises
A good that is always inelastic
A luxury good
A good that has no substitutes
What is the primary determinant of supply?
Consumer preferences
Market demand
Cost of factors of production
Government regulations
What happens to supply if the price of a product is expected to fall in the future?
Current supply decreases
Supply becomes elastic
Supply remains unchanged
Current supply increases
What is the relationship between price and quantity supplied according to the law of supply?
Direct
Inverse
Variable
No relationship
What does price elasticity of demand measure?
Change in supply due to price
Change in demand due to price
Change in production costs
Change in consumer preferences
If a product's price increases and demand decreases, what type of elasticity is it?
Elastic
Unitary elastic
Inelastic
Perfectly elastic
What is the formula for price elasticity of demand?
Percentage Change in Price ÷ Percentage Change in Quantity Demanded
Percentage Change in Quantity Demanded ÷ Percentage Change in Price
Total Revenue ÷ Price
Total Cost ÷ Quantity
What happens to total revenue if demand is elastic and price increases?
Total revenue remains unchanged
Total revenue decreases
Total revenue fluctuates
Total revenue increases
What type of market structure is characterized by many firms and identical products?
Oligopoly
Monopolistic Competition
Monopoly
Perfect Competition
What does the production function show?
Relationship between price and demand
Relationship between supply and demand
Relationship between costs and revenue
Relationship between inputs and output
What is the law of diminishing marginal returns?
Output increases indefinitely with input
Output increases at a decreasing rate with input
Output decreases with more input
Output remains constant with more input
What are fixed costs?
Costs that change with output
Costs that do not change with output
Costs that vary with demand
Costs that are always variable
What is the minimum efficient scale?
Lowest level of output where LRAC is minimized
Highest level of output where LRAC is maximized
Average cost of production
Total cost of production
What is the effect of economies of scale?
Increases fixed costs
No effect on LRAC
LRAC rises as output increases
LRAC falls as output increases
What is the average total cost formula?
TC × Q
FC ÷ Q
FC + VC
TC ÷ Q
What happens to total revenue if demand is unitary elastic and price changes?
Total revenue increases
Total revenue fluctuates
Total revenue decreases
Total revenue remains unchanged
What is the effect of an increase in the number of sellers on supply?
Supply becomes elastic
Supply increases
Supply remains unchanged
Supply decreases
What is the relationship between price and quantity demanded according to the law of demand?
No relationship
Inverse
Variable
Direct
