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Supply and Demand Final

Total questions: 25

Worksheet time: 6hrs 15mins

Name
Class
Date
1.

Which of the following describes the amount of a good producers are able and willing to set various prices during a certain period?

a)

Price

b)

Cost

c)

Supply

d)

Demand

2.

How is profit calculated?

a)

Total costs minus total revenue

b)

Total Revenue minus total costs

c)

Total supply plus total demand

d)

Total demand plus total supply

3.

Which is true about the supply curve?

a)

As the supply quantity rises, so does the price

b)

As the price rises, so does the supply quantity

c)

As the price rises, so does the demand

d)

As the cost rises, so does the demand

4.

Increasing product supply leads to which of the following situations?

a)

An inward shift if the demand curve

b)

An outward shift of the demand curve

c)

An inward shift of the supply curve

d)

An outward shift in the supply curve

5.

Which of the following describes the cost of producing an additional unit of good?

a)

Marginal cost

b)

Marginal Utility

c)

Supply cost

d)

Supply Utility

6.

Which of the following is the amount of a product a consumer is willing and able to purchase at given prices?

a)

Price

b)

Cost

c)

Supply

d)

Demand

7.

Which of the following relies the most on the health of the economy?

a)

Builders

b)

Manufacturers

c)

Trade industries

d)

Producers

8.

Which of the following is true about the demand curve?

a)

As the price rises, the good's demand increases

b)

As the price rises, the good's demand decreases

c)

As the cost rises, the good's demand increases

d)

As the supply quantity rises, the good's demand decreases

9.

Toothbrushes and toothpaste is an example of which of the following?

a)

Complementary goods

b)

Substitute goods

c)

Shift goods

d)

Raw goods

10.

Which of the following measures the responsiveness of consumers to change in price?

a)

Utility of demand

b)

Utility of supply

c)

Elasticity of demand

d)

Elasticity of supply

11.

Supply and Demand are _________ related

a)

Not

b)

Rarely

c)

Inversely

d)

Uniformly

12.

Which of the following does the law of supply assume?

a)

Nothing is constant

b)

Producers try to maximize their profits

c)

Lower price means larger quantity supplied

d)

Higher price means larger quantity demanded

13.

If the price of hamburgers rises, but the price of hot dogs remains the same, which are suppliers more likely to supply?

a)

Hamburgers

b)

Hot dogs

14.

Which of the following measures the responsiveness of producers to a price change?

a)

Marginal cost

b)

Elasticity of supply

c)

Utility

d)

Equilibrium

15.

When marginal cost is graphed, it creates which of the following?

a)

Upward slope

b)

Downward slope

c)

Bell curve

d)

U-shaped curve

16.

Which term describes the level of satisfaction derived from the consumption of a good?

a)

Marginal cost

b)

Elasticity of supply

c)

Utility

d)

Equilibrium

17.

The place where the supply curve intersects the demand curve is known as which of the following?

a)

Marginal cost

b)

Elasticity of supply

c)

Utility

d)

Equilibrium

18.

Customer willingness depends on which of the following?

a)

Advertising and promotion

b)

Prices and personal financial habits

c)

Inflation and currency conversion

d)

All of the above

19.

Which of the following are the beginning step in the manufacturing process?

a)

Builder

b)

Manufacturers

c)

Traders

d)

Producers

20.

Which of the following are a good indicator of economic health and employ a significant percentage of the American workforce?

a)

Builder

b)

Manufacturers

c)

Traders

d)

Producers

21.

An individual, business, or organization which possess a product which has not been processed at all?

a)

Builder

b)

Producers

c)

Raw Good Producer

d)

Trader industries

22.

An individual, business, or organization which uses machines tools, and labor to process a good into a final product

a)

Trader industries

b)

Manufacturer

c)

Builder

d)

Producer

23.

An individual, business, or organization which possesses a good which can be further processed to create a more valuable final product

a)

Raw Goods Producer

b)

Producer

c)

Manufacturer

d)

Elasticity

24.

An individual, business, or organization which constructs buildings for both private and commercial use

a)

Raw Goos Producer

b)

Producer

c)

Builder

d)

Manufacturer

25.

Includes building, woodworking, welding, and automotive technology

a)

Trade industries

b)

Elasticity

c)

Law of Diminishing Returns

d)

Producer