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Market Equilibrium

Total questions: 9

Worksheet time: 5mins

Name
Class
Date
1.

When quantity supplied is smaller than quantity demanded, you have a _____

a)

shortage

b)

surplus

c)

equilibrium

d)

deficit

2.

A situation in which the quantity supplied is greater than the quantity demanded is

a)

a shortage

b)

a surplus

c)

a price floor

d)

a price ceiling

3.

When the quantity consumers are willing and able to buy equals the quantity producers are willing and able to sell id called

a)

Surplus

b)

Market Exchange

c)

Market Equilibrium

d)

Shortage

4.

Who is the Father of Economics and proposed the idea of an invisible hand?

a)

Henri Fayol

b)

Adam Smith

c)

Brian Adams

d)

David Ricardo

5.

Some things that can lead to a shortage are...

a)

low demand

b)

low prices

c)

not enough resources

d)

not enough resources

6.

Shortages tend to have what effect on prices?

a)

Prices go down

b)

Prices go up

c)

Prices remain stagnant

d)

nothing

7.

 

Which of the following is a way that a firm can eliminate a surplus?

a)

raise prices

b)

create a new product

c)

offer a sale on the item

d)

recession period

8.

The costs of time and information needed to carry out market exchange.

a)

Invisible hand

b)

Market change

c)

Role of Prices

d)

Transaction Costs

9.

a metaphor for the unseen forces that move the free market economy                

a)

Transaction costs

b)

Market Equilibrium

c)

Invisible hand

d)

Market Exchange