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WorksheetsKey Concepts of Economics
Total questions: 14
Worksheet time: 7mins
Which of the following is NOT a key concept studied by economists?
A) How people make decisions
B) How people interact with one another
C) The color of money
D) Forces and trends that affect the economy as a whole
The principle of comparative advantage applies to trade among individuals and among countries.
True
False
According to the chart, what percentage of economists agree that price gouging laws increase shortages?
77%
7%
50%
100%
An increase in the supply of grain will reduce the price of grain and
increase the demand for grain
reduce the demand for grain
increase the quantity of grain demanded
reduce the quantity of grain demanded
Because the demand for oil slopes downward, when the price of oil falls,
the quantity of oil demanded increases
the quantity of oil demanded decreases
the demand for oil increases
the demand for oil decreases
If technological advances reduce the cost of producing wheat,
the supply curve for wheat shifts to the right
the supply curve for wheat shifts to the left
the demand curve for wheat shifts to the right
the demand curve for wheat shifts to the left
If incomes rise, the demand for beef
increases
decreases
does not change
shifts to the left
The Laffer curve illustrates that, in some circumstances, the government can reduce a tax on a good and increase tax revenue. This outcome occurs because:
the demand for the good is inelastic.
the demand for the good is elastic.
the tax was initially so high that it reduced the quantity sold by a large amount.
the tax was initially so low that it did not affect the quantity sold.
If the government increases a tax on a good, the deadweight loss will:
increase by a smaller amount than the increase in tax revenue.
increase by a larger amount than the increase in tax revenue.
increase by the same amount as the increase in tax revenue.
decrease.
Which of the following is an example of a private good?
National defense
Ice cream cone
Public park
Clean air
Which of the following is considered a public good?
Ice cream cone
National defense
Fish in the ocean
Clothing
Which of the following is the opportunity cost of using resources owned by the firm for which no payment is made?
Explicit costs
Implicit costs
Fixed costs
Variable costs
Which cost does not vary with the quantity of output produced?
Variable cost
Fixed cost
Marginal cost
Total cost
The government uses tax revenue to provide public goods and services.
True
False
