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WorksheetsCh 6
Total questions: 20
Worksheet time: 25mins
Name
Class
Date
1.
Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers
a)
are different.
b)
are equal.
c)
is higher for the product demanded.
d)
is higher for the product supplied.
2.
On the market demand and supply graph, the point of market equilibrium always happens
a)
at the highest point on the demand curve.
b)
where the demand and supply curves intersect.
c)
at the lowest point of the supply curve.
d)
at the center point of the graph, irrespective of the curves.
3.
When there is a shortage, producers raise prices in an attempt to
a)
separate the quantity supplied and demanded.
b)
raise the quantity demanded.
c)
equalize the quantity supplied and demanded.
d)
lower the quantity supplied.
4.
In the price system of a market economy, prices are determined by
a)
central planning.
b)
market forces.
c)
political forces.
d)
private investors.
5.
Higher prices generally
a)
discourage consumers from seeking a substitute.
b)
discourage producers from entering a market.
c)
motivate consumers to buy.
d)
motivate producers to enter a market.
6.
The maximum amount that sellers may charge for a good or service is called a
a)
maximum wage.
b)
minimum wage.
c)
price ceiling.
d)
price floor.
7.
When producers supply more, equilibrium price will
a)
fall.
b)
fluctuate.
c)
rise.
d)
stay the same.
8.
A surplus happens when
a)
prices are too low relative to consumer demand.
b)
prices are too high relative to consumer demand.
c)
prices are too low relative to producer demand
d)
prices are too high relative to producer demand.
9.
If the government set a limit on the cost of baseball bats, this action would be called
a)
setting an equilibrium price.
b)
setting a minimum price.
c)
setting a price ceiling.
d)
setting a price floor.
10.
Which of the following is an example of a price floor?
a)
limiting the ticket prices.
b)
setting a minimum wage.
c)
rationing tires.
d)
establishing rent controls.
11.
A shortage of a good is often a signal for a producer to
a)
lower production of that good.
b)
lower the prices of that good.
c)
raise the prices of that good.
d)
shift production to another good.
12.
What is the Equilibrium Price?
a)
1
b)
2
c)
3
d)
4
13.
What is the Equilibrium Quantity?
a)
50
b)
60
c)
70
d)
80
14.
When quantity supplied is greater than quantity demanded, you have a ____________.
a)
shortage
b)
surplus
c)
deficit
d)
equilibrium
15.
What is the Equilibrium Quantity?
a)
50
b)
60
c)
70
d)
80
16.
If the Price is $2, there will be...
a)
A surplus of 45
b)
A shortage of 85
c)
A shortage of 45
d)
A surplus of 85
17.
A system in which government allocates goods and services using factors other than price is called....
a)
rationing
b)
black market
c)
subsidizing
d)
transfer payment
18.
In the price system of a market economy, prices are determined by
a)
central planning
b)
market forces
c)
political forces
d)
private investors
19.
The price system is
a)
stationary
b)
unreliable
c)
flexible
20.
On a market demand and supply graph, the horizontal axis shows
a)
demand
b)
quantity
c)
prices
d)
supply
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