Name:
Period:
Define the following words using your notes:
1) Microeconomics
2) Opportunity Cost
3) Efficiency
4) Production Possibilities
5) Utility
6) Money
7) Self Sufficient
8) Capital
9) Substitution Effect
10) Income Effect
11) Complimentary goods
12) Industry
13) Shortage
Economics Midterm Review
Misercola
Name:
Period:
Economics Midterm Review
Misercola
14) Surplus
15) Price Ceiling/ cap
16) “Snapshot”
17) Diminishing returns
Match the following terms to corresponding description:
____ Free Market
____Traditional
____ Command
____Mixed market
a. Production decisions are determined by customs and
traditions.
b. Production decisions are commanded by the government
c. Laissez Faire economics allows business to exploit workers
d. Production decisions are made by entrepreneurs but the
government protects the workers and consumers
Write an equation to determine a company’s revenue:
Write an equation to determine a company’s profit:
Explain the difference between elastic and inelastic:
What impacts the quantity demanded, other than price?
Graph a typical supply curve. Then indicate the supply increasing (shift either right or left as appropriate)
Name:
Period:
Economics Midterm Review
Misercola
Use the demand schedule in the table to determine the best price for selling necklaces. Then sketch the
demand curve.
Price per necklace
$800
$600
$400
$200
$100
Quantity
demanded
0
230
630
820
1000
Match the US economic goals below with the correct definition
____ Freedom
____ Efficiency
____ Equity
____ Security
____ Stability
____Growth
a. To ensure fairness the government makes all members share
in the costs and benefits of the economy
b. US makes the best use of scarce resources
c. Efforts to increase amount of goods and services produced
d. Goal to achieve full employment and price stability
e. Efforts to protect citizens from poverty, bank failures and
emergencies
f. US government maintains choice for consumers and workers
Graph the following information and identify which points refer to a surplus, a shortage and
equilibrium.
Price of
Apples
$10
$8
$6
$4
$2
$0
Quantity
Demanded
0
20
40
60
80
100
Quantity
Supplied
100
80
60
40
20
0
Name:
Period:
Why is competition between businesses good for the economy?
Define each factor of production
Refer to the graph to answer the following questions:
1. What is the opportunity cost of producing 10,000 robots?
2. What is the opportunity cost of producing
400,000 pizzas?
3. If 200,000 pizzas and 7000 robots are
produced, is the system efficient?
4. Give an example of an inefficient
production:
5.Give an example of efficient production:
Economics Midterm Review
Misercola