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WorksheetsMicro Economics Chapter 3 Supply and Demand QUIZ
Total questions: 66
Worksheet time: 2hrs 50mins
Name
Class
Date
1.
The amount of goods available:
a)
Supply
b)
Demand
c)
Utility
d)
Equilibrium
2.
The tendency of suppliers to offer more of a good at a higher price:
a)
Law of Supply
b)
Law of Demand
c)
Law of Economics
d)
Law of Net Income
3.
The number one goal of a business is:
a)
Equality
b)
Good Working Conditions
c)
Profit
d)
Charitable Contributions
4.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
5.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
6.
When the supply of a product or service goes up and the demand stays the same the Price will typically do what?
a)
rise
b)
fall
c)
stay the same
d)
Consumer
7.
When the demand for a product or service is higher than the supply this causes what?
a)
shortage
b)
consumer
c)
surplus
d)
equilibrium
8.
Generally speaking, the lower the price, the greater the quantity demand.
a)
True
b)
False
9.
Consumer wants are the same as consumer demand.
a)
True
b)
False
10.
In economics, the term demand refers to the quantity of a good that people
a)
will buy at one particular price over a long time period
b)
would like to consume on a given date
c)
will buy at many different prices at a particular time
d)
would like to have available during a given time period
11.
There is only one gas station on a stretch of highway. Then two more gas stations open next to the first. Demand for gas does not change during this time. What will happen to the price of gas on this stretch of highway and why?
a)
The price of gas will decrease because there is more competition among businesses.
b)
The price of gas will decrease because there is less competition among businesses.
c)
The price of gas will increase because there is more competition among businesses.
d)
The price of gas will increase because there is less competition among businesses.
12.
The Supply Curve is upward-sloping because...
a)
as price increases, consumers demand less.
b)
none of the choices
c)
as price increases, so do costs.
d)
As the price increases, suppliers can earn higher levels of profit or justify higher marginal costs to produce more.
13.
Part of the reason that LeBron James earns millions of dollars each year while school teachers may earn $30,000 is because…
a)
consumers enjoy basketball to the point that they are willing to spend lots of money and time attending games and watching commercials.
b)
the supply of superstar basketball players is low, while the supply of competent teachers is much larger.
c)
demand for LeBron James' talents is very high since he can generate so much revenue for a firm.
d)
all of the choices
14.
Which of the following could cause the price for automobiles to decrease?
a)
The local factory gives a big raise to its employees.
b)
None of the choices
c)
A brand new automobile dealership opens in town.
d)
The price of gasoline falls.
15.
When college students leave town for the summer, the demand for meals at the local restaurants declines. This may result in…
a)
more people moving into town.
b)
a decrease in price.
c)
none of the choices
d)
an increase in price.
16.
What is the point called where the supply curve and the demand curve intersect?
a)
Sale Price
b)
Equilibrium Price
c)
Economic Price
d)
Premium Price
17.
Which graph below shows the SUPPLY CURVE?
a)
A
b)
B
c)
C
d)
D
18.
Which graph below shows the DEMAND CURVE?
a)
A
b)
B
c)
C
d)
D
19.
The law of demand states that there is what type of relationship between price and demand?
a)
As price decreases demand decreases.
b)
As price increases demand increases.
c)
As price decreases demand remains the same.
d)
As price increases demand decreases.
20.
The law of supply states that there is what type of relationship between price and supply?
a)
As price decreases demand increases.
b)
As price increases supply decreases.
c)
As price increases supply increases.
d)
As price decreases supply remains the same.
21.
An increase in the price of aspirin is likely to be paired with a(n) ___________________ in the demand for Tylenol because the two goods are __________________.
a)
increase; complements
b)
increase; substitutes
c)
decrease; complements
d)
decrease; substitutes
22.
If the price of printers goes down, what happens in the market for ink cartridges?
a)
Supply increases.
b)
Supply decreases.
c)
Demand increases.
d)
Demand decreases
23.
Printers and ink cartridges are typically purchased together. Economists would call these
a)
Stubstitues
b)
Complements
c)
Elastic
d)
Inelastic
24.
A government payment made to a business is a
a)
tax
b)
regulation
c)
subsidy
d)
resource
25.
The following is a factor that will not cause the demand curve to shift:
a)
Advertising
b)
Population
c)
Price
d)
Consumer expectations
26.
A change in quantity demanded is shown
a)
at various points on the demand curve
b)
with a new demand curve drawn above or below the original demand curve
c)
with a vertical line
27.
Consuming more of one good because of a change in price of another good is known as the
a)
income effect
b)
substitution effect
c)
elasticity effect
d)
demand effect
28.
A table that lists the quantity of a good that a single person will buy at each price in a market.
a)
demand schedule
b)
market demand schedule
c)
elasticity chart
d)
supply and demand graph
29.
If a consumer knows that a product will be going on sale this week, how will his/her CURRENT demand be affected?
a)
it will go up
b)
it will go down
c)
it will stay the same
d)
what does this have to do with the price of tea in China?
30.
In a market economy, who decides on the prices of goods and services?
a)
government
b)
buyers and sellers
c)
firms
d)
local leaders
31.
Generally speaking, the lower the price, the greater the quantity demand.
a)
True
b)
False
32.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
33.
For the law of supply, as price rises, what happens to quantity supplied?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
34.
If farmers stopped growing potatoes because it was too hard, this would cause the ___________ curve for Grippo's to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
35.
If Michael Jordan did advertisements for Steak and Shake, this would cause the ___________ curve for Steak and Shake to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
36.
If sandals suddenly became very popular, what would happen to the market for basketball shoes? This would cause the ___________ curve for basketball shoes to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
37.
When CDs became popular, people stopped listening to tape cassettes. This caused the ___________ curve for tape cassettes to shift ____________.
a)
demand.........right
b)
demand.........left
c)
supply.......right
d)
supply....... left
38.
a person or company that makes, grows, or supplies goods to sell is called the?
a)
damand
b)
price
c)
producer
d)
shortage
39.
The desire or willingness a consumer has to purchase a good or a service is called?
a)
shortage
b)
supply
c)
price
d)
demand
40.
The amount of goods or services available is called?
a)
supply
b)
demand
c)
producer
d)
consumer
41.
An individual or group who purchases goods.
a)
producer
b)
consumer
c)
goods
d)
services
42.
The point where supply and demand are balanced is?
a)
product
b)
demand
c)
surplus
d)
equilibrium
43.
When there is a shortage the price will usually?
a)
rise
b)
fall
c)
remain the same
d)
equilibrium
44.
In economics these concepts are called?
a)
rise and fall
b)
supply & demand
c)
customers and products
d)
surplus and shortage
45.
Consumer wants are the same as consumer demand.
a)
True
b)
False
46.
If the price of butter increases, then we would expect that the demand for margarine would fall.
a)
True
b)
False
47.
The graph illustrates a ...
a)
Demand Curve
b)
Supply Curve
c)
Elasticity Curve
d)
Price Ceiling
48.
Jeremy has $15,000 to spend on a new car. He found a car that was priced at $14,500, but he did not think the car was worth more than $12,000. The dealer told Jeremy that he has not been able to sell this model because other customers have expressed the same opinion as Jeremy. Does demand of this car exist?
a)
Yes, bc consumers like the car but don't buy it.
b)
Yes, bc consumers think the car is worth $12,000.
c)
No, bc consumers do not have the buying power to purchase this car.
d)
No, bc consumers are not willing to pay the price being asked for this car.
49.
When the price of a good or service is high consumer demand will usually be
a)
high
b)
unpredictable
c)
low
d)
average
50.
Demand is the desire and the __________ to buy a product or service
a)
need
b)
time
c)
plan
d)
ability
51.
When the price of a good increases, the quantity demanded
a)
increases
b)
decreases
c)
remains unchanged
d)
reverses
52.
The human factor of production is
a)
Capital
b)
Land
c)
Labor
d)
All of these
53.
A surplus of a product will occur when the price is…
a)
none of the choices
b)
too high
c)
at equilibrium
d)
too low
54.
What is it called when the quantity which is demanded is higher than the quantity supplied?
a)
None of the choices
b)
Surplus
c)
Equilibrium
d)
Shortage
55.
Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?
a)
The price will go up.
b)
The price will go down.
56.
The week before Halloween, pumpkin patches all around the country sell lots of pumpkins. What will happen to the price of pumpkins on the day after Halloween?
a)
The price will go up.
b)
The price will go down.
57.
Someone who makes a product to sell is a ____________.
a)
human resource
b)
consumer
c)
producer
d)
trader
58.
Lucas fixes his friend's sink. He is providing a _____________.
a)
trade
b)
opportunity cost
c)
product
d)
service
59.
Giving a haircut
a)
example of scarcity
b)
example of a service
c)
example of a good
d)
example of a consumer
60.
Technology used to make cars improves. This will cause..
a)
Supply to Increase
b)
Demand to increase
c)
Supply to Decrease
d)
Demand to Decrease
61.
Coke raises their prices. What will happen to Pepsi?
a)
Increase Demand
b)
Increase Supply
c)
Decrease Demand
d)
Decrease Supply
62.
Iphones become more expensive. What will happen to Iphone covers?
a)
Increase Demand
b)
Increase Supply
c)
Decrease Demand
d)
Decrease Supply
63.
Cardi B is trending. What happens to her music?
a)
Increase Supply
b)
Decrease Supply
c)
Increase Demand
d)
Decrease Demand
64.
What are goods?
a)
items found under a rug
b)
items found in the ocean
c)
items that are made and grown
d)
Work that is done for someone else
65.
What is a consumer?
a)
Someone who makes or grows goods or offers services
b)
someone who makes products
c)
Something that grows in nature
d)
Someone who buys goods and services
66.
The best price for a product or service is where the supply and demand lines intersect or meet.
a)
True
b)
False
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