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ECON 5.1

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

____________ refers to the amount of a product offered for sale at all possible prices in a market.

a)

Quantity Supplied

b)

Supply

c)

Production

d)

Market Supply

2.

Quantity supplied increases when the price ______________.

a)

decreases

b)

goes unchanged

c)

increases

d)

fluctuates

3.

A more than proportional change in total expenditures when there is a change in price is supply ____________.

a)

elasticity

b)

unit elasticity

c)

inelasticity

d)

inventory

4.

Movement along the supply curve measures a change in __________ supplied.

a)

market

b)

quantity

c)

quality

d)

shifted

5.

A(n) ____________ is a payment to an individual business, or other group to encourage or protect a certain type of economic activity.

a)

subsidy

b)

income investment

c)

production loan

d)

inventory loan

6.

Which of these is NOT a factor in the change in supply.

a)

cost of resources

b)

substitutes

c)

technology

d)

number of sellers

7.

Which of these best describes the influence of high prices on the behavior of producers?

a)

They are an incentive for producers to produce more.

b)

They are an incentive for producers to buy less

c)

They encourage producers to modify their supply schedules

d)

They have no significant overall effect on producer behavior

8.

Which of these names the way in which producers regard taxes?

a)

as an investment in technology

b)

as part of the cost of production

c)

as an entry in their supply schedule

d)

as an encouragement to productivity

9.

Which of these is the best description of a normal supply curve?

a)

Its slope is completely horizontal

b)

its slope goes up when the diagram is read from right to left

c)

its slope goes up when the diagram is read from left to right

d)

its slope is mostly horizontal, with occasional vertical fluctuations

10.

Which of these is true of both an individual supply curve and a market supply curve?

a)

A change in quantity supplied takes place when a change in demand occurs.

b)

A change in quantity supplied takes place only when there is a change in price.

c)

A change in quantity supplied takes place only when the price remain constant

d)

A change in quantity supplied takes place when a change in demand is projected