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WorksheetsPOBF Price 5.01F
Total questions: 15
Worksheet time: 15mins
What is the amount of money for which an item sells in the competitive marketplace?
value
price
market
utility
How much a consumer is willing to pay for a product depends partly on the consumer’s opinion of the product’s
value
production costs
efficiency
target market
What is one factor that will determine how much a customer is willing to pay for a good or service?
production costs
buying power
rationing
incentive
Which of the following is a business comparing when it analyzes the cost of buying wood desks versus the cost of buying metal desks:
incentives
excess demand
inflated price
relative price
How do producers answer the economic question of what to produce in a market economy?
They produce products that are the most profitable
They produce products that provide the least incentives
They produce products that cost them the most to produce
They produce products for which they have the most information
Who gets the goods and services produced in our economy?
Whoever is most efficient
Whoever has the least costs
Whoever is willing and able to pay the price
Whoever obtains the most information and incentives
A store sells T-shirts for $10. Which of the following would be the most likely to occur if all other factors remain the same, and there is a demand for the T-shirts at $10:
If the price is raised, business profits will go up.
If the price is lowered, business profits will go down
If the price is raised, the volume of sales will go up
If the price is lowered, the volume of sales will go up
What usually happens to the demand for a good or service when the price increases?
it increases
it decreases
it varies
it stays the same
Determine a product’s equilibrium price by examining the following table:
$11
$11.50
$12
$12.50
What exists when producers produce more than buyers are willing and able to buy?
Excess supply
Equilibrium price
Normal price
Excess demand
What do producers often do when supply is greater than demand?
Increase prices
Increase quality
Lower prices
Lower quality
After a mild, dry winter, the supply of sleds should be __________ than demanded. Therefore, the price would be __________.
less; increased
less; decreased
greater; increased
greater; decreased
Which of the following is an example of the substitution effect:
The price of Blu-ray Disc players went up recently, so Francis decided to buy a standard DVD player instead.
The mayor recently instituted a price ceiling on the monthly rent that apartment landlords can charge their tenants
The demand price of a ticket at the local amusement park is exactly equal to its supply price.
A candy bar costs $0.50, and the price of a pack of gum is $1.00. The relative price ratio is 1 to 2.
Any factor that causes changes in supply and demand will cause changes in
price
value
utility
usefulness
Prices set higher than the equilibrium price will result in
excess supply
excess demand
decreased supply
increased profits
