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Unit 1 Part 1 Quiz - EPF

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

The Law of Supply states than a/an ____ relationship exists between price and quantity supplied.

a)

simple

b)

negative

c)

inverse

d)

direct

2.

Microeconomics focuses on

a)

the big picture, looking at the economy as a whole

b)

the economic impact of implementing fiscal and monetary policy

c)

international trade and finance

d)

small economic units, such as individuals, farms, and markets

3.

The Law of Demand states that a/an ____ relationship exists between price and quanity demanded.

a)

simple

b)

direct

c)

positive

d)

inverse

4.

this occurs when quantity demanded is greater than quantity supplied

a)

shortage

b)

surplus

c)

elasticity

d)

equlibrium

5.

What scenario below best represents a monopoly?

a)

Sofa Mart and Chairtopia together control 80% of the couch market in the country.

b)

A local company wins a bid to be the sale phone and internet service provider in the region.

c)

Hundreds of firms compete against one another to sell tomatoes in a large regional market.

d)

Two new burger fast food restaurants open to compete with the many other franchised restaurants in town.

6.

In economics, the term "scarcity" is best illustrated by which of the following situations?

a)

entrepreneurs lack the start up money to produce a new invention

b)

all of the above

c)

consumers lack the time and finance to buy all the goods and services they want

d)

producers lack the productive resources needed to produce goods and services

7.

When a consumer's need to a particular product is not urgent and varies deeply based on the price demand for that product is called

a)

elastic

b)

inelastic

c)

unit elastic

d)

complementary

8.

The concept of the invisible hand refers to which of the following?

a)

The Federal Reserve adjusting interest rates

b)

Congress passing a new law

c)

Individuals acting in their own best self-interest

d)

Government regulation

9.

the increase in the price of milk results in a decrease in the demand for cereal, these two products are

a)

unrelated

b)

substitutes

c)

complements

d)

replacements

10.

which of the following motivates entrepreneurs to take risks?

a)

prices

b)

gross domestic product

c)

credit score

d)

profit

11.

freedom of choice and competition are most commonly associated with which type of economic system?

a)

communist

b)

command

c)

market

d)

traditional

12.

which of the following choices would cause the change shown in the graph

a)

inputs become less expensive

b)

costs for producers increase

c)

technology improves production

d)

the number of sellers in the market increase

13.

which of the following choices would cause the change shown in the graph

a)

an increase in the number of consumers

b)

inputs become more expensive

c)

people expected the price of a product to decrease next month

d)

the price of product increased

14.

which of the following lists the three basic economic questions?

a)

what to produce? when to produce? for whom to produce?

b)

what to produce? how to produce? why to produce?

c)

when to produce? how to produce? for whom to produce?

d)

what to produce? how to produce? for whom to produce?

15.

in the production of loves of bread, which best represents the factor of capital?

a)

the oven used to bake the bread

b)

the flour used in the dough

c)

the worker who kneaded the dough

d)

the reseller who sells the bread

16.

rank the market structures in order from MOST to LEAST competitive

a)

monopoly - oligopoly - monopolistic competition - perfect competition

b)

perfect competition - monopoly - oligopoly - monopolistic competition

c)

perfect competition - monopolistic competition - oligopoly - monopoly

d)

oligopoly - monopoly - perfect competition - monopoly

17.

the decrease in the price of hamburgers results in a decrease in the demand for hotdogs, these two products are

a)

complements

b)

unrrealted

c)

replacements

d)

substitutes

18.

which type of business organization has the advantage of being your own boss, but the disadvantage of unlimited personal liability?

a)

partnership

b)

corporation

c)

sole proprietorship

d)

conglemercrate ?

19.

which scenario below best represents a perfect competition?

a)

Sofa Mart and Chairtopia together control 80% of the couch market in the country

b)

A local company wins a bid to be the sole phone and internet service provider for the region

c)

Hundreds of firms compete against one another to sell __ in a large regional market

d)

two new burger fast food restaurants open to compete with the many other franchised restaurants in town

20.

the point where quantity supplied and quantity demand meet on the graph is called

a)

dequilibrium

b)

equilibrium

c)

surplus

d)

shortage

21.

George and Jacob want to start a lawn care business. They are the only 2 owners and have agreed to share all the profits and loses evenly between them. What type of business is this?

a)

partnership

b)

conglomerate

c)

sole proprietorship

d)

corporation

22.

Imagine you have decided to buy a movie ticket for $15. Which of the following best describe the opportunity cost of your decison?

a)

the time spent watching previews before the movie

b)

the time you spent deciding which movie you should watch

c)

the money and time you spend on the movie

d)

the 5 dollars you pay for popcorn

23.

in a command economy, the role of the government is to

a)

encourage entrepreneurs

b)

meet the needs and wants of consumers

c)

make major economic decisions

d)

promote competition

24.

an increase in the price of a product would cause the following change

a)

a decrease in the quantity demanded for a product

b)

a decrease in the supply of a product

c)

an increase in the quantity demanded for a product

d)

an increase in the demand for a product

25.

Which type of business organization has the advantage of having the financial capital to hire specialists and has limited liability, but the disadvantages of increase regulation and double taxation?

a)

corporation

b)

partnership

c)

conglomerate

d)

sole proprietorship