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WorksheetsBarclay Supply and Demand
Total questions: 112
Worksheet time: 1hrs 2mins
Name
Class
Date
1.
Which of the following is not a characteristic of demand?
a)
willingness
b)
desire
c)
surplus
d)
ability
2.
If the demand of a product drops, you would expect the price of the product to...
a)
rise
b)
stay the same
c)
go up
d)
decrease
3.
Which of the following terms describes the primary objective of any business?
a)
demand
b)
profit
c)
supply
d)
money
4.
The equilibrium price is the price at which
a)
producers' total revenue is highest
b)
consumers start reducing demand
c)
demand and supply curves intersect
d)
neither demand nor supply will shift
5.
Which of the situations best represents equilibrium?
a)
the price of milk does not change much from week to week
b)
milk production makes good profit for manufacturers
c)
everyone who wants milk can afford it
d)
the milk made equals the milk sold
6.
A shortage can also be referred to as
a)
a surplus
b)
an equilibrium
c)
excess supply
d)
excess demand
7.
new product+low introductory price+successful advertising=?
a)
shortage
b)
surplus
c)
rationing
d)
equilibrium
8.
Economists use a supply curve to
a)
show the law of supply in chart form
b)
show the law of supply in graph form
c)
show the law of supply in table form
d)
show the law of supply in a written description
9.
The additional expense of producing one more unit of a product is called
a)
marginal cost
b)
marginal labor
c)
marginal product
d)
marginal revenue
10.
Total cost is the sum of
a)
fixed and marginal costs
b)
marginal costs and variable costs
c)
fixed, marginal and variable costs
d)
fixed and variable costs
11.
A baseball team limiting the amount charged for buying tickets is called
a)
setting an equilibrium point
b)
setting a minimum price
c)
setting a price ceiling
d)
setting a price floor
12.
The demand curve is plotted by using a product's....
a)
prices and qualities
b)
production costs and qualities
c)
prices and quantities
d)
production costs and quantities
13.
On a curve, an increase in demand causes the demand curve to
a)
fluctuate both right and left
b)
shift to the left
c)
shift to the right
d)
stay in the same position
14.
The ease of changing production to respond to price changes determines
a)
how regulated the business is
b)
how expensive the product is
c)
how elastic the product is
d)
how much fixed costs are
15.
Demand can be changed by
a)
consumer taste
b)
productivity
c)
the number of products
d)
the number of competition
16.
Any price where the demand and supply are not equal is referred to as?
a)
surplus
b)
market equilibirum
c)
market disequilibrium
d)
none of the above
17.
What direction does supply/demand have to shift in order to affect an item's market price?
a)
only One Direction #bringback1D
b)
up/down
c)
right/left
d)
any
18.
There would be no substitution effect of a price change if the prices of all other goods
a)
changed by the same percentage.
b)
remained unchanged.
c)
changed inversely.
d)
changed inversely by the same percentage.
19.
A higher price makes producers more willing and better able to increase quantity supplied.
a)
True
b)
False
20.
Real income refers to
a)
how much money you actually earn.
b)
your income minus your taxes.
c)
how much your income can buy.
d)
your income minus taxes and benefits.
21.
Which situation shows the law of diminishing marginal utility at work?
a)
you are willing to pay more for every succeeding slice of pizza you purchase.
b)
you are willing to pay the same price for every succeeding lsice of pizza you purchase.
c)
You will only purchase succeeding slices of pizza if they cost less.
d)
Each slice of pizza you buy gets smaller.
22.
Which of the following cannot happen to a firm's total revenue when it lowers it prices?
a)
Total revenue will grow if many additional products are sold.
b)
Total revenue will grow if many fewer products are sold.
c)
Total revenue will remain unchanged if there is a proportional increase in the number sold.
d)
Total revenue will fall if few additional products are sold.
23.
Which of the following parts of a consumer budget would be most price elastic?
a)
housing
b)
cable
c)
telephone
d)
automobile
24.
As money income increases, what happens to the demand for inferior goods?
a)
it increases
b)
it stays the same
c)
it decreases
d)
it is eliminated
25.
One of the reasons consumers choose substitutes is that
a)
no one can tell the difference.
b)
they are relatively cheaper.
c)
they are made in Japan.
d)
they are the same price and there are more of them.
26.
What accounts for the variety of popular music today?
a)
There are a lot of musicians.
b)
Consumers have different tastes.
c)
Some people have no talent.
d)
There are many different instruments.
27.
What accounts for the variety of popular music today?
a)
There are a lot of musicians.
b)
Consumers have different tastes.
c)
Some people have no talent.
d)
There are many different instruments.
28.
If suddenly, a large population increase occurred, what impact would it have on the housing market?
a)
prices would remain constant.
b)
There would be a surplus of homes on the market.
c)
It would shift the demand curve to the left.
d)
It would shift the demand curve to the right.
29.
The downward slope of a demand curve reflects the fact that, other things constant, price and quantity demanded are
a)
negatively related
b)
positively related
c)
elastic
d)
inelastic
30.
Which item would provide you with the least marginal utility?
a)
a second copy of the daily newspaper.
b)
a second drink of water when you're thirsty.
c)
a second pair of sneakers.
d)
a second car.
31.
The market demand curve shows
a)
the demand of an individual consumer.
b)
the number of markets in a specified area.
c)
the total number of markets.
d)
the total quantity demanded per period by all consumers at various prices.
32.
Elasticity, in economic terms, is another word for
a)
adaptability
b)
adjustment
c)
responsiveness
d)
reconciliation
33.
The demand for products or services for which there are no substitutes tends to be
a)
somewhat elastic
b)
unit elastic
c)
quite inelastic
d)
perfectly elastic
34.
Which of the following is a variable resources for a firm?
a)
warehouse size
b)
assembly line equipment
c)
labor
d)
mortgage owed on a building
35.
A firm's profit-maximizing level of output occurs where
a)
marginal revenue equals total cost
b)
marginal revenue equals marginal cost
c)
average revenue equals average cost
d)
total revenue equals marginal cost
36.
The law of supply states that the quantity of a good supplied is usually directly related to its
a)
opportunity cost
b)
total cost
c)
price
d)
elasticity
37.
The term quantity supplied refers to
a)
the entire supply schedule
b)
the total amount supplied by all producers in the market
c)
the amount offered for sale at a specific price
d)
the number of individual producers
38.
When price decreases, a producer becomes ___ to supply the good.
a)
more willing but less able
b)
less willing but more able
c)
more willing and more able
d)
less willing and less able
39.
Elasticity of supply indicates
a)
how quickly producers can provide a product.
b)
how responsive producers are to a change in price.
c)
how much the product costs.
d)
how many products are in stock.
40.
Which of the following elasticities represents inelastic supply?
a)
1.2
b)
0.5
c)
1.0
d)
2.1
41.
Which of the following is NOT a determinant of supply?
a)
producer expectations
b)
technology used to make the good
c)
consumer expectations
d)
the number of sellers in the market
42.
What does a leftward shift of a supply curve indicate?
a)
an increase in supply
b)
a decrease in quantity supplied
c)
an increase in quantity supplied
d)
a decrease in supply
43.
Imagine that a firm hired a 3rd worker, and total production increases by 12 units. The firm hires a 4th worker, and total production increases by 10 units. This illustrates
a)
economies of scale
b)
the law of diminishing returns
c)
profit maximization
d)
a change in supply
44.
In a competitive market, if price exceeds marginal cost, the firm will likely
a)
supply additional units
b)
maintain current supply
c)
decrease units supplied
d)
go out of business
45.
The satisfaction you derive from an additional unit of a product is called your
a)
marginal utility
b)
tastes
c)
total revenue
d)
demand
46.
The demand for a(n) ___ increases as money income increases- that is, the demand curve shifts rightward when consumer income increases.
a)
normal good
b)
inferior good
c)
superior good
d)
declining good
47.
Products that can be used in place of each other are called ____.
a)
substitutes
b)
complements
c)
tastes
d)
inferior goods
48.
____ is the total output of the firm per period.
a)
Total product
b)
market supply
c)
total revenue
d)
marginal revenue
49.
A(n) ___ cost is one that does not change in the short run, no matter how much is produced.
a)
fixed
b)
variable
c)
total
d)
elastic
50.
An economist would probably state that in a market economy, prices are generally determined by the interaction between
a)
buyers and sellers
b)
wholesalers and retailers
c)
producers and labor unions
d)
consumers and government officials
51.
In economics, the term demand refers to the quantity of a good that people
a)
will buy at one particular price over a long time period
b)
would like to consume on a given date
c)
will buy at many different prices at a particular time
d)
would like to have available during a given time period
52.
Which of the following is likely to increase the demand for peanut butter?
a)
Fewer children in the population
b)
News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
c)
A big increase in the price of jelly.
d)
A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
53.
Summer is upon us, and people begin purchasing bathing suits in large numbers. What causes this change?
a)
Change in income
b)
Prices or availability of substitutes
c)
Change in the weather or season
d)
Change in the number of buyers
54.
Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store become slow. What causes this change?
a)
Prices or availability of substitutes
b)
Prices or availability of complementary goods
c)
Change in the weather or season
d)
Change in the number of buyers
55.
iTunes increases the price of all of its digital downloadable music to $6 per song. What causes this change?
a)
Prices or availability of substitutes
b)
Prices or availability of complementary goods
c)
Change in the weather or season
d)
Change in the number of buyers
56.
Which one of the following scenarios would NOT result in a demand change for compact discs?
a)
Famous music artists put together a save-the-children CD, with proceeds going towards education
b)
CDs go on sale in an end-of-summer blowout sale.
c)
Auto manufacturers no longer put CD players into cars as a standard feature.
d)
U.S. Government taxes rise for the fourth straight year.
57.
Supply is best defined as the measure of how much producers are willing and able to sell
a)
above the market-clearing price
b)
at any one price at a particular time
c)
at different prices at a particular time
d)
according to their resources and profit motives
58.
An automobile company based out of China starts selling its cars in the United States. Why would the supply change?
a)
Change in cost of production
b)
Changes in number of producers
c)
Changes in expectations
59.
New technology advances the rate at which furniture can be assembled. Why does this change the supply?
a)
Change in cost of production
b)
Changes in number of producers
c)
Changes in expectations
60.
The cost of flour increases due to a drought in the Midwest. It now costs more to create baked goods. Why does this change the supply?
a)
Change in cost of production
b)
Changes in number of producers
c)
Changes in expectations
61.
If bad weather destroys much of the wheat crop, then
a)
the price effect will cause growers to sell less wheat at lower prices.
b)
growers will offer less wheat at each and every price.
c)
no wheat products will be produced that year.
d)
none of the above.
62.
The market equilibrium price is the price at which
a)
surpluses depress the number of goods supplied
b)
shortages and surpluses will have no effect on the market
c)
the government will not intervene in the market
d)
the quantity demanded is the same as the quantity supplied
63.
In economics, a shortage of a product occurs when
a)
the product's price falls below its market-clearing level
b)
the product's market-clearing level reduces overall demand
c)
the people who buy the product consume more than they need
d)
the businesses producing the product become less efficient
64.
Which of the following does NOT explain why market-clearing prices are important in a free enterprise economy?
a)
They help to ration available goods and services.
b)
Equilibrium prices provide incentives for people to produce goods and services.
c)
They provide information about producer costs and consumer wants.
d)
They help to create competition to drive prices upwards in order to create necessary surpluses.
65.
What does this graph show?
a)
Shortage
b)
Surplus
c)
Supply Table
d)
Equilibrium
66.
Which of the following would not cause as shift in demand?
a)
Decrease in income
b)
Lower supply
c)
Change in tastes
d)
Increase in price
67.
What is not difficulty in finding equilibrium?
a)
It changes with supply and demand
b)
Markets are unpredictable
c)
Equilibrium is static
68.
What is not an example of a substitute?
a)
Train freight and truck freight
b)
Peanut butter and jelly
c)
Hershey's and Nestle chocolate
d)
Microsoft Word and Google Docs
69.
Which of the following would cause a change in supply?
a)
A change in market price
b)
A change in technology available
c)
A change in the number of sellers
d)
All of the above
70.
What is the difference between a demand schedule and a demand curve?
a)
A schedule is a graph and a curve is a table
b)
A schedule is written on paper and a curve is a 3d model
c)
A schedule is a table and a curve is a graph
d)
All of the above
71.
What is an example of a competitive market?
a)
Walmart
b)
Mid-American Energy
c)
Cell service providers
d)
A small town cable provider
72.
What is market demand?
a)
The dividend of all individual demand
b)
The product of all individual demand
c)
The quotient of all individual demand
d)
The sum of all individual demand
73.
What is market demand?
a)
The dividend of all individual demand
b)
The product of all individual demand
c)
The quotient of all individual demand
d)
The sum of all individual demand
74.
What is likely to happen if the price of a new pair of sneakers went up?
a)
Demand for the sneakers would increase
b)
demand for sneakers would decrease
c)
Merchants would begin offering sales on the sneakers.
75.
What factor is most likely to cause an increase in demand for anew type of automobile?
a)
the price of the car going up
b)
a rumor that the car's gas tank is prone to explosion
c)
a commercial in which the car is endorsed by a popular celebrity
76.
Who makes or grows goods, or offers services?
a)
producers
b)
consumers
c)
demanders
d)
resources
77.
Barter is
a)
to buy goods or services
b)
to trade goods or services
c)
to disagree or argue about the economic system
78.
A toy store has a large supply of blocks and wants to sell more of them. How can the store sell more blocks?
a)
lower the prices of the blocks
b)
raise the prices of the blocks
c)
stop advertising the blocks
79.
Which is an example of a producer?
a)
a farmer who grows vegetables
b)
a student who buys books
c)
a person who trades coins
80.
A budget is
a)
a person who offers a service
b)
a place to keep money
c)
a plan to save and spend money
d)
a person who grows or makes something
81.
This type of business is owned by one person.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
82.
This type of business is owned by two or more people.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
83.
This type of business is owned by many people called stockholders.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
84.
This type of business is a contractual agreement with a parent company to sell its products/services in an area.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
85.
Floral shops, bookstores and farms are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
86.
Law firms and doctor's offices are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
87.
Nike, Google and Apple are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
88.
McDonald's and Burger King are examples of....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
89.
Which types of businesses are easy to start?
a)
Sole Proprietorship
b)
Partnership
c)
Franchise
d)
All of the above
90.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
91.
Disadvantages of this type of business include: company is taxed on profits, regulated by the government, and hard to start.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
92.
Advantages of this type of business include: easy to start, and you can rely on a good company name and expertise.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
93.
Disadvantages of this type of business include: parent company are strict, you are limited in what you sell, and you must operate like every other franchise.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
94.
Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. The form of business ownership that Joe might consider establishing is a(n)
a)
corporation
b)
sole proprietorship
c)
monopoly
d)
general partnership.
95.
Owners of any business structure should protect an idea or product in the form of a
a)
patent, trademark, or copyright.
b)
copyright, patent, or permit.
c)
permit, trademark, or copyright.
d)
charter, patent, or permit.
96.
A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n)
a)
sole proprietorship
b)
general partnership.
c)
franchise
d)
corporation.
97.
It is important for business owners to weigh the advantages and disadvantages of each ownership structure because
a)
there is an established procedure for determining the best form of ownership
b)
individual goals and needs differ, which makes each business situation unique.
c)
it is important to determine how to sell it down the road.
d)
most business owners already understand how each form of ownership works
98.
Which of the following is an advantage of sole proprietorships:
a)
Limited liability
b)
Unlimited financial power
c)
Dual taxation
d)
Quick decision making
99.
The legal structure that a business owner chooses affects
a)
Stockholders and membership obligations
b)
the amount of stock issued and capability to expand internationally.
c)
taxation rates and government regulation.
d)
international tariffs and the ability to control business activities.
100.
Which of the following is a disadvantage of sole proprietorships:
a)
Limited capital
b)
Control
c)
Privacy
d)
Tax liability
101.
Opportunity cost
a)
does not relate to the use of one's time.
b)
is a change in prices.
c)
is defined as the amount of money spent to buy something.
d)
is the highest valued alternative given up whenever someone makes a choice.
102.
Which of the following is an advantage of general partnerships:
a)
Limited capital
b)
Unlimited liability
c)
Easy to end
d)
Combined capabilities
103.
Which of the following is a disadvantage of general partnerships:
a)
Difficult to end
b)
Increased capital
c)
Decreased competition
d)
Reduced expenses
104.
The best way to reduce the disagreements that often occur when two people go into business together is to develop a(n)
a)
operating permit.
b)
partnership agreement.
c)
state charter.
d)
DBA document.
105.
Which statement explains the reason for scarcity?
a)
Problems arise in getting products from producers to consumers
b)
Population always grows faster than production
c)
People's wants exceed the resources available
d)
Governments buy too many goods and services. leaving little for consumers
106.
In explaining the concept of scarcity, economists make which of the following assumptions?
a)
People's wants exceed the ability of resources to satisfy them
b)
Opportunity costs arise only when someone spends money
c)
The market is always in equilibrium
d)
People's wants are basically fixed
107.
Which of the following are scarce?
a)
time for recreation
b)
clean air
c)
information
d)
all of the above
108.
Susan wants to play softball and work after school. She cannot do both, so she decides to play softball. What is her opportunity cost?
a)
Playing softball
b)
Working
c)
Being with her friends
d)
There is no opportunity cost because she spends no money
109.
Jenny has saved some money from babysitting and she now wants to spend some of the money. She either wants to buy a new cell phone or a new Ipad. She decides to buy the phone so what is her opportunity cost?
a)
cell phone
b)
Ipad
c)
new clothes
d)
savings
110.
Jenny has saved some money from babysitting and she now wants to spend some of the money. She either wants to buy a new cell phone or a new Ipad. She decides to buy the phone so what is her opportunity cost?
a)
cell phone
b)
Ipad
c)
new clothes
d)
savings
111.
A company or person who accepts less of one thing to have more of something else is
a)
making a trade-off.
b)
eliminating scarcity.
c)
balancing demand and supply.
d)
exchanging with other people.
112.
What are the three factors of production?
a)
Profits, prices, and markets
b)
Natural, human, and capital resources
c)
Economic wants, scarcity, and entrepreneurship
d)
Goods, services, and capital
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