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POB 5.01 #5

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

A killing frost destroys 80% of Florida's citrus crop. This will most likely create:

a)

a seller's market

b)

a buyer's market

2.

Which is an external factor that affects market price?

a)

number of items in stock

b)

consumer buying power

3.

A local dealership purchased 100 blue pickup trucks, but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating which type of market for blue pickup trucks?

a)

buyer's

b)

seller's

4.

Equilibrium price of a good or service is determined by trial and error and exists when:

a)

businesses compute the average selling price in the area.

b)

the amount supplied is equal to the amount demanded.

5.

When prices increase, producers usually:

a)

increase supply

b)

decrease supply

6.

Which situations would cause prices to rise?

a)

A newspaper article describes poor service provided by a hotel.

b)

Insects destroy a large cotton crop.

7.

A local dry cleaner that also launders and presses shirts is selling:

a)

consumer services

b)

specialty goods

8.

Which occurs when the supply of individuals who are able and willing to work diminishes?

a)

Human resources become unlimited.

b)

Human resources become limited.

9.

The desire for which item(s) would be considered an economic want?

a)

a car

b)

a walk

10.

A farmer has 1,000 acres. He decides to plant apple trees on 800 acres and raise cows on the remaining 200 acres. If he wanted to raise more cows, he would have to reduce the amount of land allotted to growing apples. This is an example of:

a)

opportunity cost

b)

utility