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Economics Ch. 6

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

When the quantity supplied equals the quantity demanded, what has occured?

a)

prices increase

b)

equilibrium

c)

prices decrease

d)

there is a shortage

2.

Low prices cause buyers to...

a)

substitute other items

b)

buy less

c)

buy more

d)

postpone buying

3.

What effect does a bumper crop have on the price of that crop?

a)

no effect

b)

equilibrium

c)

decrease

d)

increase

4.

When did the most rationing occur in the US?

a)

Hurricane Katrina

b)

1970's energy crisis

c)

WWII

d)

WWI

5.

What do price floors and ceilings prevent?

a)

shortages

b)

surpluses

c)

prices reaching equilibrium

d)

benefits to consumers

6.

Who benefits from rent control?

a)

people who do maintenance and repairs on the building

b)

owners of rent-controlled apartments

c)

tenants in rent-controlled apartments

d)

people with children

7.

What causes price changes most of the time?

a)

government policy

b)

changes in supply and demand

c)

changes in supply only

d)

changes in demand only

8.

What is the highest legal price that can be charged for a product?

a)

price ceiling

b)

price floor

c)

equilibrium price

d)

monetary value of a product

9.

Price floor for agricultural products set by the government to stabilize farm prices

a)

target price

b)

equilibrium quantity

c)

rationing

d)

equilibrium price

10.

How do economists analyze behavior and predict outcomes?

a)

surplus

b)

economic model

c)

equilibrium price

d)

equilibrium quantity

11.

Minimum wage is an example of a...

a)

price floor

b)

price ceiling

c)

equilibrium price

d)

rationing

12.

In a competitive market, prices are generally....

a)

favorable for consumers

b)

favorable for producers

c)

neutral

d)

inelastic

13.

What do most economists believe is the most efficient way to allocate resources?

a)

rationing

b)

government action

c)

competitive markets

d)

distorted incentives

14.

Which of the following tends to force prices down?

a)

a surplus of the item

b)

a shortage of the item

c)

equilibrium price for the item

d)

attainment of equilibrium quantity of the item

15.

What is the effect of price floors on US agricultural products?

a)

help farmers while increasing prices for consumers

b)

help farmers while decreasing prices for consumers

c)

harm farmers while increasing prices for consumers

d)

harm farmers while decreasing prices for consumers

16.

A system of allocating goods and services without prices...

a)

surplus

b)

shortage

c)

rationing

d)

target price

17.

Monetary value of a product

a)

surplus

b)

shortage

c)

rationing

d)

price

18.

Quantity of output supplied equals quantity demanded

a)

price floor

b)

price ceiling

c)

equilibrium price

d)

equilibrium quantity

19.

Based on the diagram, at what price will there be a surplus?

a)

5

b)

6

c)

7

d)

there won't be a surplus

20.

Which of the following is the best way to learn about economics?

a)
b)
c)
d)