Economics Quiz

What does the law of demand state?

• People will buy less at higher prices

• People will buy more at lower prices

• People will buy less at lower prices

• People will buy more at higher prices

What is the main purpose of demand forecasting?

• Future Demand

• To confuse consumers

• To maintain equilibrium in the economy

• To increase prices of goods

What is the relationship between price and supply according to the law of supply?

• Inverse

• Random

• No relationship

• Direct

Which factor does not affect supply?

• Price of factors of production

• State of technology

• Price of the commodity

• Price of substitutes

What is the purpose of the Delphi method in demand forecasting?

• To analyze historical data

• To gather opinions from a panel of experts

• To predict future prices accurately

• To calculate tax implications

What is the effect of an increase in unit tax on supply?

• Increases supply

• Decreases supply

• Increases demand

• No effect on supply

How does an increase in the number of firms in the market affect supply?

• Increases demand

• Increases supply

• No effect on supply

• Decreases supply

What is the main assumption of the law of supply?

• Climate changes frequently

• Technology is constantly changing

• Prices of factors of production remain constant

• Political situations are unstable

What is the purpose of internal business forecasting?

• To predict future prices

• To understand capacity planning

• To analyze consumer behavior

• To forecast demand for new products

How does a decrease in the price of factors of production affect supply?

• Increases demand

• No effect on supply

• Decreases supply

• Increases supply