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Applie economics Week 3

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

The law of supply says that ―at higher prices, sellers will supply more of economic goods.

a)

True

b)

False

2.

The upward slope of the supply curve illustrates the law of demand— ―higher price leads to a higher quantity supplied, and vice versa‖.

a)

True

b)

False

3.

Time is important to supply because suppliers must react quickly to a change in demand or price.

a)

True

b)

False

4.

The downward slope of the demand curve illustrates the law of supply—the inverse relationship between prices and quantity demanded.

a)

True

b)

False

5.

A shift in a demand or supply curve occurs when quantity demanded or supplied changes even though price remains the same.

a)

True

b)

False

6.

Explain the interaction between the sellers of a resource and the buyers for that resource.

a)

Equilibrium

b)

The law of demand

c)

The law of supply

d)

The law of supply and demand

7.

It states that, higher the price, the higher the quantity supplied.

a)

The law of supply

b)

The law of demand

c)

Constant

d)

Curve

8.

A movement refers to a change along a _________________.

a)

Curve

b)

Line

9.

A shift in a demand or supply curve occurs when a good's quantity demanded or supplied changes even though price remains __________________________.

a)

Resolute

b)

Constant

c)

Intermittent

d)

Continuous

10.

When Supply and demand are balanced, it is called ____________________.

a)

Equilibrium

b)

Balance

c)

Equal

d)

Proportionate