Economics concepts worksheet with answers

Unemployment caused by people moving between jobs is called:

1. ASeasonal unemployment
2. BStructural unemployment
3. CCyclical unemployment
4. DFrictional unemployment

Which list gives the four traditional factors of production?

1. ASupply, demand, price and quantity
2. BMoney, labour, shares and land
3. CWages, rent, interest and profit
4. DLand, labour, capital and entrepreneurship

A tariff is:

1. AA subsidy for exporters
2. BA limit on the quantity of imports
3. CA ban on all foreign trade
4. DA tax on imported goods

If the ECB raises its main interest rate, the most likely short-term effect is:

1. AHigher borrowing and spending, which adds to inflationary pressure
2. BAn immediate rise in GDP
3. CA fall in the value of the euro
4. DLower borrowing and spending, reducing inflationary pressure

Overfishing in international waters is an example of:

1. AA natural monopoly
2. BPrice discrimination
3. CThe tragedy of the commons
4. DA Giffen good

In perfect competition in the long run, firms earn:

1. ALarge economic profits
2. BZero economic profit
3. CMonopoly profits
4. DLosses forever

Under perfect (first-degree) price discrimination, the monopolist:

1. ACreates the largest possible deadweight loss
2. BProduces less than a single-price monopolist, creating a larger deadweight loss
3. CCaptures all consumer surplus and produces the efficient output
4. DCharges every consumer the same price

In the Solow growth model, sustained long-run growth in output per worker comes from:

1. APopulation growth
2. BA higher saving rate alone
3. CGovernment budget deficits
4. DTechnological progress