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09BUS Formative Assessment

Total questions: 17

Worksheet time: 19mins

Name
Class
Date
1.

Negative Externalities are?

a)

Costs imposed on market participants

b)

Costs imposed on third parties

c)

Benefits imposed on market participants

d)

Benefits imposed on third parties

2.

After the Christmas holidays, what will happen to the prices of wrapping paper?

a)

Decrease

b)

Increase

c)

Stay the same

3.

Which condition would lead to the highest prices for a product?

a)

Low supply, high demand

b)

High supply, high demand

c)

High supply, low demand

d)

Low supply, low demand

4.
This part of the market determines DEMAND
a)
buyers
b)
sellers
c)
suppliers
d)
store owners
5.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
6.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
7.
The diagram represents a
a)
increase in demand
b)
decrease in demand
c)
change in quantity demand
d)
none of the above
8.
Which of the following would not shift the supply curve for iphones?
a)
an increase in the price of iphones
b)
a decrease in the number of sellers of iphone
c)
an increase in the price of plastic, an input into the production of iphones
d)
an improvement in the technology used to produce iphones
9.

Which of the following will cause an increase in demand for snowboards?

a)

More costly production methods

b)

A decrease in the price of lift tickets at resorts in Colorado

c)

A decrease in consumer income

d)

A decrease in the population

10.

A popular artist dies, meaning, he will obviously create no more art. How does this affect the law of demand?

a)

Demand will increase

b)

Demand will decrease

c)

Demand will stay the same

11.

Graph shows which of the following?

(actually use this graph to answer the question)

a)

a decrease in demand (shift) and a decrease in quantity supplied

b)

a decrease in demand (shift) and a decrease in supply

c)

a decrease in quantity demanded and a decrease in quantity supplied

d)

a decrease in quantity demanded and a decrease in supply (shift)

12.

The first stage of the consumer buying decision-making process is the...

a)

Need Recognition

b)

Information Search

c)

Evaluating Alternatives

d)

Purchase Decision

13.

What was the quantity of demand when the price hit $2

a)

40

b)

70

c)

90

d)

140

14.

Lake Naivasha helps supply 70% of the UK flower market. Water extraction from the lake has damaged fish stocks in the area. The impact of the flower production is an example of:

a)

Internal Benefits

b)

Internal Costs

c)

External Costs

d)

External Benefits

15.

There has recently been a crude oil shortage in Abu Dhabi which has affected the usual amount of shipments to Australian petrol stations. How will this affect BP's Supply, Demand and Price of their petrol? Explain below.

4 lines
16.

Due to sudden COVID restrictions, an Australian wool company has not been able to export their wool to their usual business partners around the world. What does this mean for the company's Supply and Demand? And how may this affect the price of their wool?

4 lines
17.

Which of the following steps of the consumer decision making process involves comparing the product to expectations and deciding whether it is satisfying or dissatisfying?

a)

Alternative evaluation

b)

Post-purchase evaluation

c)

Information searching

d)

Need identification