CP Economics Unit 3 Review

Which law of Economics states that the lower the price is of a good or service, the more people will want to buy?

• Law of Supply

• Law of Diminishing Return

• Law of Profit Margin

• Law of Demand

What is the name of the chart that demand is graphed on?

• Demand Curve

• Demand Chart

• Demand Measurement Tool

• Demand Instrument

Which of the following is a demand shifter?

• Government Regulation

• Income of Consumers

• New Technology

• Government Subsidies

The price on a curve in which supply and demand meet are known as what?

• Equality Point

• Equilibrium Price

• Supply Point Price

• Demand Point Price

Which of the following BEST illustrates the law of demand?

• As the price of televisions increases, the demand for televisions decreases

• As the price of televisions increases, the quality of televisions increases

• As the price of televisions decrease, the demand for televisions decreases

• As the price of televisions decreases, the quality of televisions decreases

Which economic theory states that the amount of a product available increases as prices increase, and the amount of product available decreases as prices decrease?

• Law of Supply

• Law of Diminishing Return

• Law of Profit Margin

• Law of Demand

Which of the following is NOT a supply shifter?

• Cost of Inputs

• Expectations

• Income of Consumers

• Technology

According to the Law of Supply, what would likely happen if more firms were to enter the market?

• There would be a decrease in the supply of a certain good

• There would be an increase in the supply of a certain good

• There would be no change in the supply of a certain good

• There would be no more supply of a certain good

Demand is all about the __________________'s decisions, and supply is all about the _________________'s decisions.

• Consumer, Producer

• Producer, Consumer

In a capitalist system, economic decisions such as which goods are produced, how goods are produced, and the prices of those goods are made by whom?

• Kings and Queens

• Joe Biden

• Our Local House Representative

• Private Citizens