Economics concepts worksheet with answers

In economics, the short run is a period in which:

1. AThe firm must make a loss
2. BPrices cannot change
3. CAt least one factor of production is fixed
4. DAll factors of production can be varied

The unemployment rate is calculated as:

1. AThe number of employed divided by the labour force
2. BThe number of unemployed divided by the total population
3. CThe number of job vacancies divided by the population
4. DThe number of unemployed divided by the labour force

Macroeconomics studies:

1. AThe decisions of individual households and firms in particular markets
2. BThe economy as a whole, such as inflation, unemployment and growth
3. COnly the stock market
4. DThe accounts of a single company

Comparative advantage means a country should specialise in goods it can produce:

1. AMore cheaply in absolute terms than every other country
2. BAt a lower opportunity cost than other countries
3. CWith the most workers
4. DOnly for its own consumption

A per-unit tax is placed on a good with very inelastic demand and elastic supply. Who bears most of the tax burden?

1. AThe government
2. BProducers
3. CConsumers
4. DIt is always split equally

A public good is:

1. ARival and excludable
2. BAny good bought by the government
3. CProvided only by private firms
4. DNon-rival and non-excludable

A deadweight loss represents:

1. AThe profit of a monopolist
2. BThe loss of total surplus when output differs from the efficient level
3. CThe tax revenue collected by the government
4. DLosses made by firms that are forced to leave the market in the long run

A monopolist maximises profit where:

1. AMarginal revenue equals marginal cost
2. BTotal revenue is at its maximum
3. CAverage cost is at its minimum
4. DPrice equals marginal cost