Economics concepts worksheet with answers

Unemployment caused by people moving between jobs is called:

1. ASeasonal unemployment
2. BCyclical unemployment
3. CStructural unemployment
4. DFrictional unemployment

Fiscal policy uses:

1. ATrade agreements only
2. BExchange rate controls only
3. CInterest rates set by the central bank
4. DGovernment spending and taxation

A budget deficit occurs when:

1. ATotal government debt falls
2. BGovernment spending exceeds government revenue in a year
3. CA firm's costs exceed its revenue
4. DThe value of imports exceeds the value of exports in a year

In a simple closed economy without taxes, the MPC is 0.8. The Keynesian spending multiplier is:

1. A5
2. B0.8
3. C1.25
4. D8

Overfishing in international waters is an example of:

1. AThe tragedy of the commons
2. BA natural monopoly
3. CA Giffen good
4. DPrice discrimination

The marginal propensity to consume is:

1. AThe average share of total income that households save over a year
2. BThe total consumption in an economy
3. CThe interest rate on consumer loans
4. DThe share of an extra euro of income that is spent on consumption

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

1. APopulation growth
2. BTechnological progress
3. CGovernment budget deficits
4. DA higher saving rate alone

In the Bertrand model, two firms sell identical products with the same constant marginal cost and compete on price. The equilibrium price is:

1. AZero
2. BThe monopoly price
3. CEqual to marginal cost
4. DHalfway between monopoly price and marginal cost