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Worksheetsmarkets
Total questions: 21
Worksheet time: 11mins
Name
Class
Date
1.
What is a market situation where quantity demanded is greater than quantity supplied?
a)
Equilibrium
b)
Shortage
c)
Surplus
2.
What is a market situation where quantity supplied is greater than quantity demanded?
a)
Shortage
b)
Equilibrium
c)
Surplus
3.
What is the location called where supply and demand curves intersect?
a)
Shortage
b)
Quantity Supplied
c)
Equilibrium
d)
Disequilibrium
4.
What is the letter used to show the price received by producers after a subsidy has been introduced?
a)
A
b)
B
c)
P
d)
Q
5.
What is the name of a payment made from the government to producers?
a)
Surplus
b)
Sales Tax
c)
Subsidy
d)
Schedule
6.
A Price Maximum will lead to surplus in the market
a)
True
b)
False
7.
A Price Minimum will lead to a surplus in the market.
a)
True
b)
False
8.
Price controls are set by the government
a)
True
b)
False
9.
How do you work out the cost of a subsidy to the government?
a)
Subsidy per unit x Q
b)
Subsidy per unit x Q1
c)
P1 x Q1
d)
P x Q
10.
How do you determine the price paid by consumers after a subsidy?
a)
P
b)
P1
11.
A price minimum will increase the quantity demanded of the product.
a)
True
b)
False
12.
A price maximum will increase the quantity supplied of a product.
a)
True
b)
False
13.
Surplus is a synonym for...
a)
excess supply
b)
excess demand
14.
Shortage is a synonym for...
a)
Excess demand
b)
Excess supply
15.
A subsidy will lead to what?
a)
A increase in quantity demanded
b)
An increase in supply
c)
An increase in government spending
d)
All of these
16.
New technology will decrease costs of production and ...
a)
Increase supply
b)
Increase quantity supplied
c)
Decrease supply
d)
Decrease quantity supplied
17.
What is a disadvantage of a subsidy?
a)
It can be expensive for the government to maintain
b)
Everyone (even those who can afford the market price) are eligible for subsidy
c)
Money spent on subsidies cannot be spent on other things
d)
all of the above
18.
What is the advantage of a subsidy over a price control?
a)
No advantage
b)
No surplus or shortage created.
19.
A subsidy will lead to an increase in...
a)
Demand
b)
Quantity demanded
20.
A good which is commonly used instead of another is called a...
a)
related good
b)
substitute good
c)
similar good
d)
complimentary good
21.
How might the government deal with a shortage because of a price control?
a)
Rationing
b)
Harvesting
c)
Invest in new technologies
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