Basic Economics

____________________ is the amount of a goods that a company has.

• Supply

• Demand

• Good

__________________ is the willingness and desire of a person to buy a good.

• Supply

• Service

• Demand

If the supply decreases and the demand increases then the price will ___________________. 

• Decrease
• Increase
• Stay the same

If the supply increases, but the demand decreases, then the price will _______________. 

• Decrease
• Increase
• Stay the same 

If the demand of a good and supply stays the same the price will _______

• Decrease
• Stay the same
• Increase

When a company has more supply than demand this is known as a _______________. 

• Equilibrium 
• Shortage
• Surplus 

Which of the following statements applies to economics?

• It is how we make decisions to best use our limited resources.

• It deals with inflation, unemployment, and decision making behavior.

• It can be broken down into macroeconomics and microeconomics.

• All of the answers are correct

What is the equilibrium quantity given the following demand and supply curves?

Q sub s = 10+2P

Q sub d = 30-12P

• 2.53

• 0.4

• 3

• 1.43

The equilibrium price is shown graphically where:

• the supply and demand curves intersect

• the demand curve crosses the y-axis

• the supply curve crosses the y-axis

• the demand curve crosses the x-axis

What is the fundamental problem of economics? 

• How to keep consumers out of debt?
• How to fulfill our unlimited wants and needs with limited resources?
• How to figure out the way to make the most money?
• How do we ensure all people get a college education?