Economics concepts worksheet with answers

Free printable Economics concepts worksheet: 8 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy

GDP measures:

  1. AThe total wealth and savings held by a country's citizens and firms at the end of a year
  2. BThe government's budget
  3. CThe value of all exports only
  4. DThe total market value of final goods and services produced in a country in a period
2.Easy

Structural unemployment is caused by:

  1. AA temporary fall in aggregate demand
  2. BThe normal time that workers take to search for and move between jobs
  3. CA mismatch between workers' skills or location and the jobs available
  4. DSeasonal changes in demand for labour
3.Easy

Which list gives the four traditional factors of production?

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

A currency depreciation tends to:

  1. AMake exports cheaper abroad and imports more expensive
  2. BReduce the price of all domestic goods and make imports cheaper
  3. CHave no effect on trade
  4. DMake imports cheaper
5.Medium

The marginal propensity to consume is:

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

Overfishing in international waters is an example of:

  1. AA natural monopoly
  2. BA Giffen good
  3. CPrice discrimination
  4. DThe tragedy of the commons
7.Hard

Purchasing power parity (PPP) suggests that, in the long run, exchange rates adjust so that:

  1. AInterest rates are equal in all countries
  2. BTrade balances are always zero
  3. CEvery currency ends up having the same nominal value as the US dollar
  4. DThe same basket of goods costs the same in different countries
8.Hard

The "convergence hypothesis" from the Solow model predicts that:

  1. APoorer countries with similar fundamentals tend to grow faster than richer ones
  2. BExchange rates converge to a fixed value
  3. CRich countries always grow faster than poor ones, because they have more capital
  4. DAll countries will eventually have the same population

Answer key

  1. 1. D · The total market value of final goods and services produced in a country in a period
  2. 2. C · A mismatch between workers' skills or location and the jobs available
  3. 3. D · Land, labour, capital and entrepreneurship
  4. 4. A · Make exports cheaper abroad and imports more expensive
  5. 5. B · The share of an extra euro of income that is spent on consumption
  6. 6. D · The tragedy of the commons
  7. 7. D · The same basket of goods costs the same in different countries
  8. 8. A · Poorer countries with similar fundamentals tend to grow faster than richer ones

Full step-by-step solutions: practise this topic on examproblems.com.