Economics - Unit 1 Mini-Quiz

What does this graph represent?

• Supply

• Demand

What does this line/graph represent?

• Supply

• Demand

What is the Equilibrium PRICE for this market of cakes?

• $10

• $5

• $8

• $4

Answer explanation

Equilibrium price is found on the Y-Axis. This is the agreed upon price for the market and is found at the intersection of the demand and supply curves.

What is the equilibrium quantity for this market?

• 130

• 290

• 1.00

• 200

In the circular flow diagram to the left, box (1) represents _____ and box (2) represents______.

• households; firms

• the product market; the factor market

• household; government

• firms; households

Which of the following would flow from box (2) to box (1)?

• Entrepreneurship

• Money paid for goods

• Labor

• Wages