WorksheetsEcon Unit 2 Test
Total questions: 39
Worksheet time: 16mins
Name
Class
Date
1.
A product whose demand increases when consumer income rises is called a:
a)
Inferior good
b)
Elastic good
c)
Normal good
d)
Complement
e)
Substitute
2.
When two goods are consumed together, like peanut butter and jelly, they are known as:
a)
Substitutes
b)
Complements
c)
Elastic goods
d)
Inferior goods
e)
Unrelated goods
3.
The change in quantity demanded due to a change in consumer purchasing power is called the:
a)
Income effect
b)
Substitution effect
c)
Law of demand
d)
Elasticity effect
e)
Marginal utility
4.
A graph that shows the relationship between price and quantity demanded is the:
a)
Demand curve
b)
Supply curve
c)
Production function
d)
Budget line
e)
Utility curve
5.
If quantity demanded changes very little when price changes, demand is said to be:
a)
Elastic
b)
Inelastic
c)
Unitary elastic
d)
Perfectly elastic
e)
Excessive
6.
A product whose demand decreases when income increases is a:
a)
Normal good
b)
Complement
c)
Inferior good
d)
Substitute
e)
Elastic good
7.
According to the __________, as price decreases, quantity demanded increases.
a)
Law of demand
b)
Law of supply
c)
Law of elasticity
d)
Law of diminishing returns
e)
Law of cost
8.
When the percentage change in quantity demanded equals the percentage change in price, demand is:
a)
Elastic
b)
Inelastic
c)
Unitary elastic
d)
Perfectly inelastic
e)
Highly elastic
9.
If a small change in price leads to a large change in demand, the demand is:
a)
Elastic
b)
Inelastic
c)
Unitary elastic
d)
Rigid
e)
Fixed
10.
The measure of how responsive consumers are to a change in price is called:
a)
Elasticity of demand
b)
Law of demand
c)
Income effect
d)
Marginal utility
e)
Demand curve
11.
The additional cost of producing one more unit of a good is the:
a)
Marginal cost
b)
Fixed cost
c)
Variable cost
d)
Total cost
e)
Opportunity cost
12.
The additional income from selling one more unit of output is the:
a)
Marginal revenue
b)
Marginal cost
c)
Profit
d)
Total revenue
e)
Fixed cost
13.
The measure of how responsive producers are to a change in price is called:
a)
Elasticity of supply
b)
Elasticity of demand
c)
Law of supply
d)
Marginal supply
e)
Price elasticity
14.
According to the __________, as price increases, quantity supplied increases.
a)
Law of supply
b)
Law of demand
c)
Law of diminishing returns
d)
Law of elasticity
e)
Law of cost
15.
A government payment that supports a business or market is called a:
a)
Excise tax
b)
Subsidy
c)
Tariff
d)
Regulation
e)
Grant
16.
A chart that lists how much of a good a supplier will offer at various prices is a:
a)
Supply schedule
b)
Demand curve
c)
Production schedule
d)
Cost table
e)
Market chart
17.
A government intervention that affects price, quantity, or quality of a good is a:
a)
Subsidy
b)
Regulation
c)
Tax
d)
Tariff
e)
Quota
18.
A tax on the production or sale of a good is called an:
a)
Excise tax
b)
Sales tax
c)
Income tax
d)
Tariff
e)
Import duty
19.
Costs that change depending on how much is produced are:
a)
Fixed costs
b)
Variable costs
c)
Marginal costs
d)
Sunk costs
e)
Opportunity costs
20.
Costs that remain the same regardless of production levels are:
a)
Fixed costs
b)
Variable costs
c)
Marginal costs
d)
Total costs
e)
Flexible costs
21.
A maximum price that can be legally charged for a good or service is called a:
a)
Price floor
b)
Price ceiling
c)
Equilibrium price
d)
Subsidy
e)
Tariff
22.
When quantity supplied exceeds quantity demanded, it creates:
a)
Shortage
b)
Equilibrium
c)
Excess supply
d)
Price ceiling
e)
Subsidy
23.
A sudden shortage of a good caused by an unexpected event is a:
a)
Price shock
b)
Demand curve
c)
Supply shock
d)
Market crash
e)
Shortage
24.
The point at which supply and demand curves intersect is called:
a)
Equilibrium
b)
Shortage
c)
Price ceiling
d)
Market cap
e)
Elastic point
25.
When quantity demanded is greater than quantity supplied, there is a:
a)
Surplus
b)
Equilibrium
c)
Shortage
d)
Subsidy
e)
Price floor
26.
A minimum price set by the government that must be paid for a good is a:
a)
Price ceiling
b)
Price floor
c)
Equilibrium
d)
Tariff
e)
Regulation
27.
The time and effort consumers spend finding a product or service is called:
a)
Search costs
b)
Opportunity costs
c)
Transaction costs
d)
Marginal costs
e)
Variable costs
28.
A system under which goods are distributed using criteria other than price is:
a)
Rationing
b)
Price fixing
c)
Subsidizing
d)
Regulation
e)
Bartering
29.
A market structure in which many firms sell identical products and no one controls price is:
a)
Monopoly
b)
Oligopoly
c)
Perfect competition
d)
Monopolistic competition
e)
Cartel
30.
A market structure dominated by a few large firms is an:
a)
Oligopoly
b)
Monopoly
c)
Perfect competition
d)
Duopoly
e)
Cartel
31.
An exclusive right to sell or produce an invention is a:
a)
Patent
b)
Copyright
c)
License
d)
Trademark
e)
Permit
32.
Products that are the same regardless of who makes or sells them are called:
a)
Substitutes
b)
Complements
c)
Commodities
d)
Patents
e)
Brands
33.
Charging different customers different prices for the same good is called:
a)
Price fixing
b)
Price discrimination
c)
Collusion
d)
Subsidizing
e)
Bundling
34.
A market where a single firm can produce at lower cost than multiple firms is a:
a)
Monopoly
b)
Natural monopoly
c)
Oligopoly
d)
Cartel
e)
Perfect competition
35.
When larger production leads to lower costs per unit, it is called:
a)
Diseconomies of scale
b)
Economies of scale
c)
Marginal returns
d)
Fixed costs
e)
Elasticity
36.
An illegal agreement among firms to set prices is:
a)
Price discrimination
b)
Price fixing
c)
Subsidy
d)
Regulation
e)
Patent
37.
The removal of government controls from an industry is known as:
a)
Deregulation
b)
Regulation
c)
Nationalization
d)
Privatization
e)
Subsidization
38.
A secret agreement between firms to limit competition is called:
a)
Collusion
b)
Competition
c)
Deregulation
d)
Price discrimination
e)
Cartel
39.
Prompt:
The European Union (EU) has spent over a decade investigating and issuing major fines against Google (Alphabet Inc.) for alleged anti competitive practices related to its search engine, advertising, and Android operating system.
Evaluate the economic justification for the EU's efforts to regulate Google. In your essay, you must analyze the situation from the perspective of market structure and efficiency by incorporating the following three key terms:
Market Power
Oligopoly or Monopoly (You must argue which one best applies to Google's situation)
Price Discrimination (or Price Fixing / Collusion if more relevant to your argument)
Specifically, your response must address:
How Google's dominant position relates to the concept of a Monopoly or Oligopoly.
The primary economic danger that Google's Market Power poses to consumers and smaller, competing businesses.
A specific example of a questionable business practice by Google and how it relates to Price Discrimination (or another term you choose).
4 lines
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