Economics Quiz - Scarcity, Shortage, Demand, Supply

What is scarcity?

• Unlimited resources and limited wants

• Limited resources and unlimited wants

• Unlimited resources and unlimited wants

• Limited resources and limited wants

What is a shortage?

• When quantity demanded exceeds quantity supplied at a given price

• When quantity supplied exceeds quantity demanded at a given price

• When there is an equal quantity of supply and demand

• When the price of a good remains constant

Which of the following is NOT a determinant of demand?

• Income

• Technology

• Prices of related goods

• Consumer preferences

What happens to the quantity demanded of a good when its price increases?

• It increases

• It decreases

• It remains constant

• It fluctuates

What is the law of supply?

• As the price of a good increases, the quantity supplied decreases

• As the price of a good decreases, the quantity supplied decreases

• As the price of a good increases, the quantity supplied increases

• As the price of a good decreases, the quantity supplied increases

Which of the following can cause a shortage?

• A sudden decrease in demand

• An increase in supply

• Price ceilings

• Technological advancements

What is market equilibrium?

• When quantity demanded is greater than quantity supplied

• When quantity supplied is greater than quantity demanded

• When quantity demanded equals quantity supplied

• When there is a surplus

Which of the following is an example of a normal good?

• Generic brands

• Used cars

• Branded clothing

• Street lighting

What is an inferior good?

• Goods for which demand increases as income increases

• Goods for which demand decreases as income increases

• Goods that can replace each other

• Goods that are often used together

What is a public good?

• Goods that are excludable and rivalrous

• Goods that are non-excludable and non-rivalrous

• Goods that are harmful to society

• Goods that are beneficial for society