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WorksheetsEcon: Chapter 6 Equilibrium Review
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
Which of these situations best illustrates market equilibrium?
a)
The price of soap does not vary much from week to week.
b)
Soap production ensures a good profit for the manufacturer.
c)
Everyone who wants or needs soap can easily afford to buy it.
d)
The amount of soap made matches the amount of soap that people want to buy.
2.
How is the market-clearing price determined?
a)
It is fixed by each manufacturer.
b)
It is reached through trial and error.
c)
It is calculated by economic analysts.
d)
It is set by a government commission.
3.
The equilibrium price is the price at which
a)
consumers start reducing demand.
b)
producers’ total revenue is highest.
c)
demand and supply curves intersect.
d)
neither demand nor supply will shift.
4.
If a manufacturer introduces a new product with a successful advertising campaign and an artificially low introductory price, which of these will most likely result?
a)
equilibrium
b)
rationing
c)
surplus
d)
shortage
5.
Which event in Florida and California would most likely shift the supply curve for orange juice to the left?
a)
an influx of new low-wage workers
b)
an early frost accompanied by ice storms
c)
evidence that citrus fruit strengthens bones
d)
rise of mango juice as a popular breakfast drink
6.
Which of these might best signal furniture makers to cut back production?
a)
a fall in the cost of essential raw materials
b)
an increase in availability of skilled workers
c)
an introduction of competitors into the market
d)
a drop in the price consumers are willing to pay
7.
What is the usual result of setting a price ceiling on rents?
a)
People can find apartments but cannot afford to rent them.
b)
Houses are broken up into apartments to meet the demand.
c)
More people want to rent apartments than are available to rent.
d)
Construction jobs increase with the building of new apartment buildings.
8.
New Deal jobs programs offered employment during the Great Depression. In economic terms, such programs were designed to respond to
a)
a shortage of skills.
b)
a lack of incentives.
c)
a surplus of workers.
d)
an excess of services.
9.
The purpose of rationing during World War II was to ensure that
a)
manufacturers could make a profit.
b)
everyone could get essential scarce goods.
c)
workers would have an incentive to get jobs.
d)
products would go to those who valued them most.
10.
The most important argument many economists make against price controls is that they are
a)
unfair.
b)
unstable.
c)
insecure.
d)
inefficient.
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