Economic Final Test Practice

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Jenni wants to start a print shop making specialty papers and cards. Which economic question has she answered?

• For whom to produce?

• How much to produce?

• How to produce?

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• What to produce?

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XYZ Tutoring provides educational services for students struggling in math. Which economic question does students struggling in math answer?

• For whom to produce?

• How much to produce?

• How to produce?

• What to produce?

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Which statement below best answers the economic question How to produce?

• Marco's products sell at prices ranging between $2 and $125.

• Marco sells his products at art shows, online, and by word of mouth.

• Marco uses locally harvested wood from a sustainable tree farm to make his products.

• Marco works as an independent artisan, crafting wooden figurines, toys, and games.

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Tristan has gotten very good at painting characters in fantasy settings. He has just bought acrylic paint and canvas in bulk, intending to start a painting business. Which statement best addresses the next economic question Tristan needs to answer?

• Buy a web domain and build a website.

• Market to online game players.

• Network with other painters.

• Plan a company budget.

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Alpaca Yarn employs factory workers to hand spin wool yarn and fabric in a workshop on the company farm. Which economic questions does this statement answer?

• How much to produce? How much to charge?

• How to produce? How much to produce?

• What to produce? For whom to produce?

• What to produce? How to produce?

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The products available for purchase are the

• demand.

• equilibrium point.

• equilibrium price.

• supply.

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When is equilibrium reached?

• When supply is greater than demand.

• When demand equals supply.

• When supply is less than demand.

• When demand and supply both change.

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The price (P) of designer jeans is affected by the supply (S) and the demand (D).What does this graph show?

• Demand for more pairs of jeans causes reduced supply and increased price.

• Demand for more pairs of jeans results in an increase in both price and quantity supplied.

• Fewer pairs of jeans sold causes increased supply and decreased price.

• Fewer pairs of jeans sold results in a decrease in both price and supply.

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The price (P) of designer jeans is affected by the supply (S) and the demand (D).Which of these represents an equilibrium price for designer jeans?

• The arrow pointing to D2

• The intersection of P1 and Q1

• The line marked D1

• The line marked S

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The price (P) of designer jeans is affected by the supply (S) and the demand (D).Which of these can cause an increase in the price of designer jeans?

• Increased demand and no change in supply.

• Decreased demand and increased supply.

• Increased supply alone.

• Decreased demand alone.