Economics concepts worksheet with answers

The unemployment rate is calculated as:

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

Monopolistic competition is a market with:

1. AMany firms selling identical products with no branding or advertising
2. BMany firms selling differentiated products, with free entry
3. CA few firms selling identical products
4. DOne firm and high barriers to entry

The Consumer Price Index (CPI) measures:

1. AThe interest rate charged by banks
2. BThe prices that firms pay for raw materials and other inputs used in their production
3. CThe total value of goods produced in a country
4. DThe changing cost of a fixed basket of goods and services bought by households

In an oligopoly, firms are typically:

1. AMany and too small to affect the price
2. BCompletely unregulated by competition law
3. CFew and interdependent in their decisions
4. DA single seller in the market

The income elasticity of demand for a good is -0.4. The good is:

1. AA luxury good
2. BAn inferior good
3. CA complement
4. DA normal necessity

Unexpectedly high inflation tends to benefit:

1. APensioners on fixed nominal incomes
2. BSavers holding cash
3. CBorrowers with fixed-rate loans
4. DLenders who receive fixed interest payments

In the "Battle of the Sexes" coordination game, how many pure-strategy Nash equilibria are there?

1. AOne
2. BFour
3. CNone
4. DTwo

Under a fixed exchange rate with free capital movement, a country:

1. ALoses control of independent monetary policy
2. BCannot trade with other countries
3. CCan set any interest rate it likes
4. DMust have a budget surplus