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WorksheetsAP Econ Unit 2
Total questions: 21
Worksheet time: 11mins
How will an increase in demand and a simultaneous decrease in supply affect the
equilibrium price and quantity of a good in a market?
Price increase and quantity increase
Price increase Quantity indeterminate
Price decrease Quantity increase
Price decrease Quantity indeterminate
Price indeterminate Quantity indeterminate
If labor cost rise in the automobile industry, which of the following will happen to car prices
and the quantity of cars sold?
Price decrease Quantity Sold decrease
Price decrease Quantity Sold increase
Price increase Quantity Sold decrease
Price increase Quantity Sold increase
Price increase Quantity Sold no change
In one fourth of a nation wheat crop is destroyed by a flood in a given season, then the price
of wheat and the Quantity Sold will change in the short run in which of the following ways?
Price decrease Quantity Sold No change
Price decrease Quantity Sold increase
Price increase Quantity Sold decrease
Price increase Quantity Sold increase
Price no change Quantity Sold increase
If there is a decrease in the price of the coffee beans used to make brewed coffee, how will
this affect the equilibrium price and quantity of brewed coffee?
Equilibrium price will decrease and equilibrium quantity will increase
Equilibrium price will decrease and equilibrium quantity will not change
Equilibrium price will decrease and equilibrium quantity will decrease
Equilibrium price will increase and equilibrium quantity will decrease
Equilibrium price will increase and equilibrium quantity will not change
A simultaneous increase for both the demand for the supply of a good in a market will lead to
which of the following changes in the equilibrium price and quantity of the good?
Price increase Quantity increase
Price indeterminate Quantity decrease
Price indeterminate Quantity increase
Price increase Quantity indeterminate
Price decrease Quantity increase
If the product technology of a good improves and at the same time the number of consumers
willing and able to buy the good in the market increases, which of the following will definitely
occur?
Equilibrium price will increase
Equilibrium price will decrease
Equilibrium quantity will increase
Equilibrium quantity will decrease
Equilibrium quantity will remain the same
In the coffee market, which of the following changes will increase the price and decrease the
quantity of coffee?
Supply increase Demand increase
Supply increase Demand decrease
Supply decrease Demand increase
Supply no change Demand increase
Supply decrease Demand no change
To protect high cost domestic producers, a country imposes a tariff on an imported
commodity, Y. Which of the following is most likely to occur in the short run?
1. A decrease in domestic production of Y
2. An increase in domestic production of Y
3. An increase in foreign output of Y
1 only
2 only
3 only
1 and 3 only
2 and 3 only
Price $2.00 Quantity 10,000
Price $1.75 Quantity 15,000
Price $1.50 Quantity 20,000
Price $1.25 Quantity 30,000
Price $0.75 Quantity 5,000.
There is a shortage, and the price will rise
There is a shortage, and the price will fall
There is a surplus, and the price will rise
There is a surplus, and the price will fall
Demand will decrease and the supply will increase
The existing surplus in the market will cause upward pressure on prices until the equilibrium is reached at 75 units
The existing surplus in the market will cause downward pressure on prices until the equilibrium is reached at 60 units
The existing shortage in the market will cause upward pressure on prices until the equilibrium is reached at 30 units
The existing shortage in the market will cause an upward pressure on prices until equilibrium reached at 60 units
The existing shortage in the market will cause downward pressure on prices until equilibrium is reached at 45 units
There will be a surplus of 30 units and 90 units will be exchanged
There will be a surplus of 90 units and 30 units will be exchanged
There will be a surplus of 60 units and 30 units will be exchanged
There will be a shortage of 90 units and 30 units will be exchanged
There will be a shortage of 30 units and 90 units will be exchanged
Which of the following will occur in a competitive market when the price of a good is less
than the equilibrium price?
Price will decrease to eliminate the surplus and restore equilibrium
Price will decrease to eliminate the shortage and restore equilibrium
Price will increase to eliminate the shortage and restore equilibrium
Price will remain use supply will increase to eliminate shortage
Which of the following changes in the supply of and the demand for a good will definitely
result in a decrease in both the equilibrium and quantity of the good?
Supply increase Demand increase
Supply increase Demand no change
Supply no change Demand decrease
Supply decrease Demand increase
Supply decrease Demand decrease
A leftward shift of the supply curve for computers could be caused by which of the following
in the short run?
decreasing the number of computer manufacturers
A decrease in taxes computer manufacturers
A decrease in the price of computers
A decrease in the price of components used to assemble computers
An increase in the price of mobile devices, a substitute good
Which of the following describes the law of supply?
An increase in the price of a good will decrease the quantity demanded.
The price of a good will increase if production input costs decrease.
An increase in taxes will decrease the supply of the good.
An increase in the number of sellers will increase the supply of the good.
An increase in the price of a good will increase the quantity supplied.
Assume that for consumers, pears and apples are substitutes. It is announced that
pesticides used on most apples may be dangerous to consumers’ health. As a result of this
announcement, which of the following market changes is most likely to occur in the short run in
the pear market?
A decrease in supply and an increase in demand
An increase in supply
A decrease in demand
An increase in demand
A decrease in demand and an increase in supply
Comparative advantage implies that
No country should specialize completely in the production of any one good
Every country should try to export more than it imports
Developing countries should import raw materials and export manufactured goods
Two countries should benefit from trade unless both have equal opportunity costs in
every good
Countries should impose tariffs to protect their domestic industries
Which of the following would mostly likely result in a movement downward (between two
points) along a single demand curve?
A decrease in the number of buyers
A decrease in the price of the product
A decrease in the expected future price of the product
An increase in the negative effects of this product on its purchasers
An increase in the use of this product for educational purposes
If the wage rate of workers producing a good decreases, then which of the following will
most likely occur?
The demand curve will shift to the right
The supply of the good will increase
The quantity supplied of the good will decrease
The demand for the good will increase
The quantity demanded for the good will decrease
Which of the following will cause a movement along the demand curve for chicken, a normal
good, resulting in an increase in the quantity demanded?
An increase in consumers’ income
An increase in the price of fish, a substitute good
An increase in the price of barbeque sauce, a complementary good
A decrease in the price of chicken
A decrease in the number of consumers of chicken
