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Unit 2 Review

Total questions: 25

Worksheet time: 6hrs 15mins

Name
Class
Date
1.
This part of the market determines DEMAND
a)
buyers
b)
sellers
c)
suppliers
d)
store owners
2.
This part of the market determines SUPPLY
a)
buyers
b)
sellers
c)
consumers
d)
us
3.
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
4.
For the law of supply, as price rises, what happens to quantity supplied?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
5.
When quantity supplied and quantity demanded is equal
a)
surplus
b)
shortage
c)
equilibrium
d)
law of demand
6.
If a price is above equilibrium price, it creates a...
a)
shortage
b)
surplus
c)
market price
d)
demand
7.
If a price is below the equilibrium price it creates a...
a)
shortage
b)
surplus 
c)
market price 
d)
supply
8.
What does this curve represent?
a)
demand
b)
supply
c)
equilibrium
d)
shortage
9.
What does this curve represent?
a)
supply
b)
equilibrium
c)
demand
d)
surplus
10.
When the supply of a product or service goes up and the demand stays the same the Price will typically do what? 
a)
rise
b)
fall
c)
stay the same
d)
Consumer
11.
The desire or willingness a consumer has to purchase a good or a service is called?
a)
shortage
b)
supply
c)
price
d)
demand
12.
The amount of goods or services available is called?
a)
supply
b)
demand
c)
producer
d)
consumer
13.

What could cause the shift from D1 to D2?

a)

A change in preferences

b)

A change in price

c)

A change in quantity demanded

d)

A change in quantity supplied

14.

This graph represents...?

a)

Changes in quantity demanded

b)

Changes in quantity supplied

c)

Changes in demand

d)

Changes in supply

15.

This graph represents...?

a)

Changes in quantity demanded

b)

Changes in quantity supplied

c)

Changes in demand

d)

Changes in supply

16.

If the supply curve on this graph represents iPhones, what would cause the change from S to S1 (red to purple line)?

a)

An increase in computer chips

b)

An increase in the cost of producing an iPhone

c)

Employees figure out a way to work more efficiently

d)

The price of iPhones increases

17.

If Tom Brady unretires and wins a Super Bowl, what will happen to the demand curve for Tom Brady jerseys (in theory)?

a)

It will shift to the right

b)

It will shift to the left

c)

It won't shift

d)

The price will go down

18.

The point in the middle of the two curves represents or shows....?

a)

Market Equilibrium

b)

An increase in supply

c)

A shortage

d)

A surplus

19.
Cold weather in Florida has damaged this year’s orange crop. Farmers have only half of the usual amount of oranges to sell. What will happen to the price of oranges?
a)
The price will go up.
b)
The price will go down.
20.
Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?
a)
The price will go up.
b)
The price will go down.
21.

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

a)

There is a change in cost of production.

b)

The number of producers changes.

c)

The expectations of consumers changes.

d)

The output rate declines.

22.

Which statement expresses a central idea of how the laws of supply and demand work?

a)

The government sets the prices for goods and services.

b)

Prices are determined by the interaction of producers and consumers.

c)

Consumers alone determine the prices for goods and services.

d)

Technology dictates the prices charged for goods and services.

23.
When companies compete in a market economy, what is usually the result?
a)
Consumers are able to buy goods for the best available price.
b)
People pay much higher prices for goods.
c)
There are frequent shortages of goods on the market.
d)
Producers refuse to sell some of their products.
24.

If the price of a substitute to good X increases, then

a)

The demand for good Y will increase.

b)

The market price of good X will decrease.

c)

The demand for good Y will decrease.

d)

The demand for good X will not change.

25.

If the demand for X decreases, then the demand for the complementary good Y will...

a)

Increase

b)

Remain the same

c)

Decrease

d)

There's not enough information to answer this question