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BusinessEcoQuiz1-Aug2024

Total questions: 25

Worksheet time: 19mins

Name
Class
Date
1.

Price of Product Y was dropped from Rs. 15 per unit to Rs. 13 per unit. That led to increase in demand from 86 Units to 98 Units. Calculate the Point Elasticity Ratio.

a)

1.05

b)

-0.60

c)

-1.05

d)

0.86

2.

Price of Product B increased from Rs. 18 per unit to Rs. 22 per unit. It led to drop in demand from 110 units to 80 Units. Calculate the Arc Elasticity of Demand Ratio.

a)

1.20

b)

0.91

c)

-1.23

d)

-1.58

3.

Proportion of Change in Demand is greater than Proportion of Change in the Price for which of the following type of elasticity?

a)

Perfectly Elastic

b)

Relatively Elastic

c)

Perfectly Inelastic

d)

Relatively Inelastic

e)

Unitary Elastic

4.

Proportion of Change in Price is greater than Proportion of Change in Demand in which of the following type of elasticity?

a)

Perfectly Elastic

b)

Relatively Elastic

c)

Perfectly Inelastic

d)

Relatively Inelastic

e)

Unitary Elastic

5.

Demand for which of the following products are expected to be Relatively Inelastic to change in price?

a)

Salt

b)

Aviation Turbine Fuel

c)

CNG for Passenger Vehicles

d)

Domestic Electricity

e)

Sugar

6.

Price has _________ & ______ relationship with Supply and Demand respectively

a)

Direct and Direct

b)

Inverse and Direct

c)

Direct and Inverse

d)

Inverse and Inverse

7.

The correct formula for calculating Point Elasticity of Demand and Price is_______

a)

Change in Price % / Change in Demand %

b)

Change in Demand % / Change in Supply %

c)

Change in Demand % / Change in Price %

d)

None of the above

8.

Which type of Demand Elasticity depends on change in price of substitute or complementary product?

a)

Price

b)

Income

c)

Cross

d)

Advertising

9.
In an economy what three things must take place?
a)
Production, Relocation, Consumption
b)
Production, Distribution, and Consumption
c)
Production, Distribution, and Labeling
10.
____________________ is the amount of a good that a company has. 
a)
Supply
b)
Demand
c)
Good
11.
__________________ is the willingness and desire of a peson to buy a good. 
a)
Supply
b)
Service
c)
Demand
12.
If the supply decreases and the demand increases then the price will ___________________. 
a)
Decrease
b)
Increase
c)
Stay the same
13.
If the supply increases, but the demand decreases, then the price will _______________. 
a)
Decrease
b)
Increase
c)
Stay the same 
14.
When a company has more supply than demand this is known as a _______________. 
a)
Equilibrium 
b)
Shortage
c)
Surplus 
15.

Something that motivates an individual or business to behave or produce favorably is called a/n

a)

reward

b)

grant

c)

incentive

d)

all of the above

16.

What is demand?

a)

the amount of an item you have

b)

how many people want your good/service

c)

the money you have left over after you paid your bills

17.

What type of economy does the United States have?

a)

traditional

b)

mixed

c)

command

d)

market

18.

What is a free market economy?

a)

An economy based on supply and demand with little or no government control

b)

The international exchange of goods

c)

An economy in which decisions are made by the government

d)

An economy that is communist

19.

Which type of economy has central ownership, the government, and lack of individual choice?

a)

Market

b)

Mixed

c)

Command

d)

Traditional

20.

The Law of Supply says that when prices go up, suppliers should -

a)

make more product

b)

make less product

21.

The Law of Demand says when prices go up, people's demand -

a)

goes up

b)

goes down

22.

When demand is high, but resources are limited, what happens to price?

a)

it stays the same

b)

it goes down

c)

it goes up

23.

Which do people compare in order to make choices

a)

supply and demand

b)

costs and benefits

c)

buying and selling

d)

apples and oranges

24.

This picture shows an example of -

a)

good or service

b)

a positive incentive

c)

scarcity

d)

a negative incentive

25.

Economics is all about

a)

making money

b)

government controlling resources

c)

making decisions

d)

none of these