Introduction to Economics: Supply and Demand Quiz

What does the law of demand state?

• As the price increases, demand increases.

• As the price decreases, demand remains unchanged.

• As the price increases, demand decreases.

• As the price decreases, supply increases.

What does the law of supply state?

• As the price increases, supply decreases.

• As the price decreases, supply increases.

• As the price increases, supply increases.

• As the price decreases, supply remains unchanged.

What is the equilibrium price?

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

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

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

• The price set by government regulation.

What happens when there is a surplus of a product in the market?

• The price of the product increases.

• The demand for the product increases.

• The price of the product decreases.

• The supply of the product decreases.

What is a demand curve?

• A graph showing the relationship between the price of a good and the quantity supplied.

• A graph showing the relationship between the price of a good and its quality.

• A graph showing the relationship between the price of a good and the quantity demanded.

• A graph showing the relationship between the supply of a good and its demand.

What factors can cause a shift in the demand curve?

• Changes in the price of the good itself.

• Changes in consumer income, tastes, and prices of related goods.

• Changes in technology.

• Changes in government policies.

What factors can cause a shift in the supply curve?

• Changes in consumer preferences.

• Changes in the number of suppliers.

• Changes in the price of the good itself.

• Changes in technology, input prices, and government policies.

The study of the workings of the economy as a whole

• Macro economics

• Micro economics

• Tradeoffs

• Positive economics

When unlimited wants is greater than limited resources it is know as?

• 
  opportunity cost

• 
  

  productivity

• scarcity

• trade off

Bill Gates is an example of...

• Land

• Labor

• An Entrepreneurs

• Capital