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WorksheetsDemand Curve Shift - Economics Worksheet
Total questions: 80
Worksheet time: 50mins
Of the following, which situation could cause the shift of the demand curve from D1 to D2 in the graph above?
A. A new health report says that yogurt keeps you healthy.
B. A new health report says that yogurt makes you sick.
C. Yogurt prices fall due to a milk surplus.
D. Yogurt prices rise due to a milk shortage.
A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.
6%
7.5%
8.5%
10%
Corporations, as a separate legal entity, are subject to corporate taxes. Additionally, the stockholders in corporations are subjected to income taxes on the sale of stocks and income from dividends. This peculiar tax situation that corporations face is called
progressive income tax.
double taxation.
itemized deductions.
flat tax.
The Consumer Price Index (CPI) can be defined as
A measure of inflation based on the cost of a fixed “market basket”
The market value of all final goods and services
A measure of the price consumers pay
A measure of what consumers are willing to pay
Which of the following is NOT one of the 3 Economic questions?
How to produce
When to produce
What to produce
Whom to produce for
Influencing the economy by changing the reserve requirement is called:
Easy Money
Tight Money
Monetary policy
Fiscal policy
Kathy, Sue, and Christina own a bakery. Each day all three women spend hours baking cakes, decorating cakes, and packaging cakes. Which economic concept would help them become more efficient?
Interdependence
Specialization
Productivity
Scarcity
What is fiscal policy?
A policy used by the Federal Reserve to affect the money supply
A policy used by the government to control the money supply
A policy used by the government to affect inflation and full employment
A policy used by the Board Of Governors to oversee bank
A movement from curve S1 to curve S2 represents a(n)
decrease in quantity supplied
increase in quantity supplied
decrease in supply
Increase in supply
Farm helpers are unemployed when the cropping season is over.
seasonal
structural
cyclical
frictional
Which type of economic system is most common in the world today?
Traditional
Command
Mixed
Market
Which of the following is not in the labor force?
Jonathan, who just graduated from business school and is currently seeking employment as an accountant.
Mark, who does not have work but applied for work at a local factory.
Tyler, who has a graduate degree but is working as a waiter.
Jessica, who works part-time but wishes for work full time.
James, who wants to work but has given up looking for work until the weather improves.
Which of the following BEST explains why entrepreneurs take the risk of starting a business?
because the government backs them financially
to make their own hours
to have the freedom to make their own choices
to make profits
What does point Y represent on the PPC?
A future shift inward of the PPC
Inefficiency
Not possible with current resources
Efficiency
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
Franchise
Corporation
Sole Proprietorship
Partnership
The diagram represents a
Increase in Demand
Increase in Quantity Demand
Increase in Supply
Increase in Quantity Supply
Which is the best way to increase productivity and economic growth?
none of the above
Increasing the minimum wage
Increasing labor laws
Investing in new technology and equipment
Which of these shows a decrease in the quantity demanded?
Graph labeled A
Graph labeled B
Graph labeled C
Graph labeled D
Which factor of production would you consider a lawn mower?
Land
Capital
Labor
Entrepreneur
Contractionary fiscal policy includes:
decreasing taxes.
increasing the money supply.
increasing government expenditures.
increasing taxes.
The graph represents: Demand or Supply?
Supply
Demand
Price
Quantity
Which explains why a Supply Curve is upward sloping?
the Law of Demand shows a positive relationship between two goods, creating the slope
the Law of Demand states there is an indirect relationship between price and quantity
the Law of Supply states there is a direct relationship between price and quantity
the Law of Supply compares marginal costs and marginal benefits in a constant rate
If auto workers lose their jobs as the industry becomes far more technically intensive and capital intensive, what form of unemployment occurs?
Structural
Frictional
Seasonal
Cyclical
New technology makes the production of watches more efficient and less expensive. How will this affect the supply of watches?
stablize
increase
Fluctuate
Decrease
A business partnership has ________ who share the risks and the profits.
Five or more owners
Two or more owners
No more than three owners
One owner
Investments in stocks have the potential for very high returns. This also means that stocks have which other characteristic?
They have guaranteed payments
They are very difficult to purchase
They pay low interest rates
They have a high risk of losses
Paul wants to buy a classic sports car. Unfortunately, only a limited amount of dealers and collectors have the model car he wants. As a result, Paul will have to pay a high price, if he can even get the car at all. Paul is experiencing
scarcity
an embargo on cars
severe inflation
depreciation in the market
Which of the following best represents the equation for GDP?
GDP = C + I + G + (X - M)
GDP = C + I + G + Taxes - Transfers + (X - M)
GDP = C + I + G + Taxes - CPI
GDP = C+ I + G - (X + M)
Which of the following is NOT one of the three main macro economic goals?
A) social equality
B) economic growth
C) stable prices
D) full employment
What is the total in the labor force?
33 million
31 million
32 million
30 million
Dan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest?
corporation
partnership
Sole Proprietorship
Franchise
Law of demand says if the price of pizza falls, the demand for pizza will what?
Increase
Decrease
Stays the same
Amy is excited because she just opened her own consulting firm. Amy loves being her own boss and not having to consult with anyone else before she makes decisions. Eventually, She even hopes to incorporate and enjoy some additional tax advantages. The only downside is that she has invested all the money herself. If the business fails, she could go bankrupt.
Sole Proprietorship
Cooperative
Partnership
Corporation
Goods that are bought and used together are
unrelated goods
income goods
substitute goods
complementary goods
Matching
individuals can contribute money to accounts, either individually or through their employers, investing in different funds, and withdrawing it once they are no longer working
Retirement account
money that is accessible by the depositor at any time and insured by the FDIC, but earns a relatively low rate of interest.
Saving Account
money that is insured by the FDIC and earns interest, but is usually promised for a specific time period and isn’t immediately accessible by the depositor without paying a penalty.
CD
investing in a single company by purchasing a share of the ownership
Stocks
a loan made, often to the government or a company, in exchange for earning a guaranteed interest rate over time. 76.
Bond investment
An economic system based on equity and in which the government decides what gets made and sets prices is called a
Which letter identifies a peak in the business cycle?
A
B
C
D
A Fruit Shake Company just upgraded its capital equipment by buying a machine that makes fruit shakes faster and cheaper than the original machine. What effect should this have on the graph?
price drops, quantity drops
price rises, quantity drops
price rises, quantity rises
price drops, quantity rises
Comparing real GDP between two consecutive years is most useful in determining which economic measurement?
economic growth
equity
equilibrium price
exchange rate
Which phrase could be used to describe a PPC shifting outward?
A decrease in demand for a product
Inefficient use of resources
Economic Growth
Resources wasted or idle
Iceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine are
Real GDP is nominal GDP adjusted for:
MagnaFlare is a corporation that makes road flares. One of the primary components of a MagnaFlare is ground magnesium. How would the magnesium ore, from which ground magnesium is made, be classified as a factor of production?
In a ______________ economy the "3 economic questions" are answered by a central authority.
Market
Traditional
Command
Mixed
Which of the following is NOT one of the 3 Economic questions?
What to produce
Whom to produce for
How to produce
When to produce
Which of the following BEST explains why entrepreneurs take the risk of starting a business?
to make profits
to have the freedom to make their own choices
to make their own hours
because the government backs them financially
Competition and free enterprise are most common in which type of economic system?
market
command
planned
traditional
Investing heavily in new capital equipment and technology is MOST related to
economic freedom
supply and demand
economic growth
opportunity costs
In the production of chocolate chip cookies, which represents the factor of capital?
the worker who decorates the cookies
the sugar used to bake the cookies
the retailer who sells the cookies
the oven used to bake the cookies
In the production of chocolate chip cookies, which represents the factor of capital?
the worker who decorates the cookies
the sugar used to bake the cookies
the retailer who sells the cookies
the oven used to bake the cookies
Kathy, Sue, and Christina own a bakery. Each day all three women spend hours baking cakes, decorating cakes, and packaging cakes. Which economic concept would help them become more efficient?
Scarcity
Productivity
Specialization
Interdependence
Which would cause the shift seen in the graph?
They have chosen to produce less of both goods.
The country can no longer produce Good “B”
Negative events caused a loss of resources reducing overall production capacity.
More resources have been discovered.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits. (SSEMI3)
Partnership
Sole Proprietorship
Corporation
Franchise
A business partnership has ___________ who share the risks and the profits. (SSEMI3)
One owner
No more than three owners
Two or more owners
Five or more owners
Which of these shows a decrease in the quantity demanded?
When the income in households increases, what is the likely result?
The demand curve shifts to the right
The supply curve will shift to the left.
The supply curve becomes vertical.
The demand curve shifts to the left.
If new pollution regulations are imposed on companies who make chicken nuggets, the supply of chicken nuggets will
Increase
Stabilize
Decrease
Fluctuate
Mr. Simpson is liable for all the debts of his company. Mr. Simpson has which type of business organization?
Monopoly
sole proprietorship
conglomerate
Corporations
A movement from cuve S1 to curve S2 represents a(n)
ncrease in supply
decrease in supply
increase in quantity supplied
decrease in quantity supplied
Which letter identifies a peak in the business cycle?
A
B
C
D
What is the total in the labor force?
30 million
32 million
31 million
33 million
Which of the following best represents the equation for GDP?
GDP = C+ I + G – (X + M)
GDP = C + I + G + Taxes – CPI
GDP = C + I + G + Taxes – Transfers + (X - M)
GDP = C + I + G + (X – M)
A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.
10%
8.5%
7.5%
6%
Which of the following is not in the labor force?
Charles, who wants to work but has given up looking for work until the weather improves.
Mary, who works part-time but wishes for work full time.
John, who has a graduate degree but is working as a waiter.
Carl, who does not have work but applied for work at a local factory.
Melissa, who just graduated from business school and is currently seeking employment as an accountant.
