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WorksheetsUnit 4 Economics
Total questions: 13
Worksheet time: 7mins
Name
Class
Date
1.
______________ determines what needs to be produced. A company does not want to use scarce resources on something people do not want to buy.
a)
Consumer Demand
b)
Producers Supply
c)
Consumer Supply
2.
elasticity: a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants.
a)
true
b)
false
3.
___________________ a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price.
a)
price elasticity of demand
b)
price elasticity of supply
c)
elasticity
4.
________________ a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income.
a)
income elasticity of demand
b)
income elasticity of supply
c)
supply
d)
demand
5.
________________ a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price.
a)
price elasticity of supply
b)
price elasticity of demand
c)
supply
d)
demand
6.
____________ The Relationship between Price and Quantity Supplied
a)
Supply Curve
b)
Demand Curve
c)
Supply
d)
Demand
7.
____________ the claim that, other things equal, the quantity supplied of a good rises when the price of the good rises.
a)
Law of supply
b)
Law of demand
c)
supply
d)
demand
8.
________________ the amount of a good that buyers are willing and able to purchase.
a)
Quantity Demanded
b)
Quantity Supplied
c)
Law of Demand
d)
Law of Supply
9.
___________a graph of the relationship between the price of a good and the quantity demanded. A decrease in demand is represented by a shift of the demand curve to the left.
a)
Demand Curve
b)
Supply Curve
c)
Income
d)
Inferior Good
10.
____________ two goods for which an increase in the price of one good leads to an increase in the demand for the other.
a)
substitutes
b)
complements
c)
equillibrium
11.
______________ a situation in which the market price has reached the level at which quantity supplied equals quantity demanded.
a)
Equilibrium
b)
Supply
c)
Demand
12.
surplus: a situation in which quantity supplied is greater than quantity demanded. To eliminate the surplus, producers will lower the price until the market reaches equilibrium.
a)
True
b)
False
13.
shortage: a situation in which quantity demanded is greater than quantity supplied. Sellers will respond to the shortage by raising the price of the good until the market reaches equilibrium.
a)
True
b)
False
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