Economics Quiz

What is the equilibrium price?

• The price at which the quantity demanded exceeds the quantity supplied

• The price at which the quantity demanded equals the quantity supplied

• The price at which the quantity supplied exceeds the quantity demanded

• The price at which the quantity demanded and supplied are zero

What does the equilibrium price represent?

• The highest price that buyers are willing to pay

• The lowest price that sellers are willing to accept

• The optimal level of production and consumption

• The price determined by the government

What is the law of market forces?

• When there is a shortage, the price falls; and when there is a surplus, the price rises

• When there is a shortage, the price rises; and when there is a surplus, the price falls

• When there is a shortage, the price and quantity supplied both increase

• When there is a surplus, the price and quantity demanded both decrease

What happens when there is a shortage in the market?

• The price rises and producers decrease production

• The price falls and producers increase production

• The price rises and producers increase production

• The price falls and producers decrease production

What is a surplus or excess supply?

• A situation in which the quantity demanded exceeds the quantity supplied

• A situation in which the quantity supplied exceeds the quantity demanded

• A situation in which the quantity demanded and supplied are equal

• A situation in which there is no demand or supply

What is a market?

• A place where buyers and sellers interact for trading or exchange

• A place where only buyers can buy goods and services

• A place where only sellers can sell goods and services

• A place where goods and services are produced

What is a goods market?

• A market where only wet goods are sold

• A market where only dry goods are sold

• A market where goods and services are bought and sold

• A market where goods are produced

What is a labor market?

• A market where workers offer their services and employers look for workers to hire

• A market where only skilled workers are hired

• A market where only unskilled workers are hired

• A market where workers are not allowed to offer their services

What is a stock market?

• A market where only stocks of corporations are traded

• A market where only bonds of corporations are traded

• A market where only commodities are traded

• A market where only real estate properties are traded

What is demand?

• The attitude and reaction of a consumer towards the commodity they want to buy

• The quantity of a commodity that consumers want to buy

• The price of a commodity that consumers are willing to pay

• The quantity of a commodity that producers want to sell