NEW
Font size
S
M
L
XL
WorksheetsDemand/Supply
Total questions: 30
Worksheet time: 16mins
Name
Class
Date
1.
When a consumer is able and willing to buy a good or service, he/she creates what?
a)
consumption
b)
demand
c)
elasticity
d)
allocation
2.
What determines the price and the quantity produced of most goods/?
a)
The consumers perception of necessity
b)
the interaction of supply and demand
c)
the availability of substitutes
d)
the quantity of the goods that are produced
3.
What are inferior goods?
a)
goods that are not well produced
b)
goods no one wants to buy
c)
goods for which the demand rises when income falls
d)
goods for which the demand rises when income rises
4.
What determines how a change in price will affect total revenue for a company?
a)
elasticity of demand
b)
the company's pricing policy
c)
values of elasticity
d)
the consumer's incomes
5.
What shows the quantities of products demanded at each price by all consumers in a market?
a)
a market pricing list
b)
a schedule of consumer prices
c)
a market demand schedule
d)
an elasticity and consumption list
6.
How did the existence of the baby boomer generation change demand in the U.S.?
a)
demand was raised for different goods with each age the boomers reached
b)
after they reached the teenage years, the boomers were integrated into society and no longer affected demand
c)
people were poorer because they had so many children, so demand was lowered
d)
the boomers did not raise demand until they became adults, when they had their own money to spend
7.
What kind of table lists the quantity of a good that a person will buy at different prices?
a)
market demand curve
b)
market demand schedule
c)
demand schedule
d)
demand curve
8.
What does it mean when the demand for a good is inelastic?
a)
People will not buy the good when the price goes up
b)
a price increase has no significant impact on buying habits
c)
consumers are sensitive to the price of the good
d)
there are very few satisfactory substitutes for the good
9.
What is the basic principle of the law of demand?
a)
the higher the price, the more people will want the good
b)
everyone has a limited income that they will spend
c)
when a good'd price is lower, people will buy more of it
d)
services are of interest in the same way that goods are
10.
Which of the following goods might not be bought when prices rise?
a)
complement
b)
luxury
c)
inferior good
d)
substitute
11.
What kind of changes would be expected in the demand of a country that has a growing population?
a)
a rise in the demand for recreation
b)
a decrease in the demand for cars
c)
a shift in the demand for high quality food
d)
an increase in the demand for shelter
12.
A shift in the demand curve means....
a)
a change in demand at every price
b)
a rise in prices
c)
a decrease in both price and quantity demanded
d)
a change in consumer income
13.
What is a company's total revenue?
a)
the price of their goods
b)
the amount they receive for selling their goods
c)
the amount og goods they can expect to sell
d)
the amount of profit they can expect to make
14.
When prices rise, what happens to income?
a)
it buys less
b)
it goes down
c)
it rises to meet prices
d)
it is used to buy different things
15.
Which of the following is an example of lower production costs brought about by the use of technology?
a)
the delivery costs of gasoline to the consumer by diesel trucks
b)
the use of e-mail to replace slower surface mail
c)
the making of breads and pastries in local shops rather than large bakeries
d)
the importing of fresh veggies from South America rather than using canned veggies
16.
What is the effect of import restrictions on prices?
a)
they cause prices to drop
b)
they cause prices to rise
c)
they often cause prices to rise steeply, and then drop
d)
they usually do not have any lasting effect on price
17.
What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?
a)
sell the goods now and try to invest the money instead of resupplying
b)
sell the goods now but try to get the higher price for them
c)
store the goods until the price rises
d)
store the goods indefinitely regardless of when the price rises
18.
When the selling price of a good goes up, what is the relationship to the quantity supplied?
a)
the cost of production goes up
b)
the profit made on each item goes up
c)
it becomes practical to produce more goods
d)
there is no relationship between the two
19.
what factor has the greatest influence on elasticity/ inelasticity of supply?
a)
profit
b)
time
c)
labor
d)
financing
20.
Which of the following is the best example of the law of supply?
a)
a milling company builds a new factory to process flour for export
b)
a catering company buys a new dishwasher to make their work easier
c)
a food producer increases the number of acres of wheat he grows to supply a milling company
d)
a sandwich shop increases the number of sandwiches they supply every day when the price is increased
21.
Which of these is a fixed cost for a store?
a)
short-term workers
b)
rent
c)
advertising
d)
inventory
22.
a payment to the government on the production or sale of a good
a)
subsidy
b)
excise tax
c)
retail price
d)
dividends
23.
a measure of the way a quantity supplied reacts to a change in price
a)
elasticity of supply
b)
supply
c)
elasticity of demand
d)
profit
24.
a government payment that supports a business
a)
mortgage
b)
personal loan
c)
income tax
d)
subsidy
25.
a level of production in which the marginal production decreases with new investment
a)
diminishing marginal returns
b)
50% production
c)
marginal returns
d)
underutilization
26.
the cost of producing one more unit of a good
a)
fixed cost
b)
+1 cost
c)
marginal cost
d)
total cost
27.
the additional income from selling one more unit of a good
a)
extra profit
b)
marginal revenue
c)
more income
28.
The change in output from hiring one more worker
a)
marginal revenue
b)
marginal wokers
c)
marginal product of labor
29.
A level at which the marginal production goes up with new investment
a)
increasing marginal returns
b)
capital gains
c)
net profit
30.
Government intervention in a market that affects the production of a good
a)
bull market
b)
regulation
c)
command
Reset
