Microeconomics Quiz

____ are rewards offered to try to get people to take certain economic actions.

• Profits

• Incentives

• Marginal benefits

• Trade-offs

_____ refers to the desire, willingness, and ability to buy a good or service.

• Supply

• Demand

• Law of Demand

• Market Supply

This part of the market determines DEMAND

• buyers
• sellers
• suppliers
• store owners

This part of the market determines SUPPLY

• buyers
• sellers
• consumers
• us

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up
• it goes down
• it stays the same
• it is not effected

When quantity supplied and quantity demanded is equal

• surplus
• shortage
• equilibrium
• law of demand

Is the minimum wage a “price ceiling” or a “price floor?

• price ceiling

• price floor

Is rent control a “price ceiling” or a “price floor?”

• price ceiling

• price floor

If the store has 100 packs of toilet paper and 200 people want to buy it, is it a shortage or surplus?

• shortage

• surplus