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INTRO TO MICRO vs MACRO ECONOMICS

Total questions: 14

Worksheet time: 13mins

Name
Class
Date
1.

1. Microeconomics mainly studies:

a)

National income and growth

b)

Behavior of individual households and firms

c)

Inflation and unemployment

d)

Fiscal and monetary policies

2.

2. Macroeconomics mainly focuses on:

a)

Individual markets

b)

Consumer decision-making

c)

The economy as a whole

d)

Cost minimization by firms

3.

3. Which of the following is an example of microeconomics?

a)

Measuring GDP growth of a country

b)

Analyzing why coffee prices increase when demand rises

c)

Examining unemployment during a recession

d)

Designing fiscal stimulus packages

4.

4. The interaction of demand and supply determines:

a)

Inflation rate

b)

Government spending

c)

Market equilibrium price and quantity

d)

National output

5.

5. Which of the following is NOT a determinant of demand?

a)

Consumer income

b)

Tastes and preferences

c)

Prices of related goods

d)

Production costs

6.

6. The law of demand states that:

a)

Higher prices increase quantity demanded

b)

Lower prices increase quantity demanded

c)

Supply creates its own demand

d)

Demand creates its own supply

7.

7. The law of supply suggests that:

a)

Higher prices encourage more supply

b)

Lower prices encourage more supply

c)

Demand always determines supply

d)

Supply is fixed regardless of price

8.

8. Which is a feature of perfect competition?

a)

One seller dominates the market

b)

Many sellers, identical products

c)

Firms can easily set high prices

d)

Government controls prices

9.

9. Price elasticity of demand measures:

a)

Sensitivity of demand to price changes

b)

Sensitivity of supply to price changes

c)

Inflation in an economy

d)

GDP growth rate

10.

10. Which of the following is a macroeconomic indicator?

a)

A bakery’s production cost

b)

National unemployment rate

c)

A student’s spending decisions

d)

Uber’s surge pricing in a city

11.

11. GDP measures:

a)

Total value of goods and services produced in an economy

b)

Total exports minus imports

c)

Total household income only

d)

Total government revenue

12.

12. Fiscal policy involves:

a)

Money supply and interest rates

b)

Government spending and taxation

c)

Inflation control by central banks

d)

Exchange rate determination

13.

13. During high unemployment, governments may use:

a)

Expansionary fiscal policy

b)

Contractionary fiscal policy

c)

High interest rates

d)

Reduced public spending

14.

14. Which best describes the main difference between microeconomics and macroeconomics?

a)

Micro = small scale, Macro = large scale

b)

Micro = policy-making, Macro = efficiency only

c)

Micro = inflation, Macro = consumer choice

d)

Micro = GDP, Macro = market prices