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economics unit 3 quiz

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

Which of the following would NOT change Demand

a)

the price of related goods

b)

income

c)

tastes

d)

the prices of the resources used to create the good

2.

Suppose you like banana cream pie made with vanilla pudding. Assuming all other things remain the same, you notice that the price of bananas is higher. How would your demand for vanilla pudding change?

a)

It would decrease

b)

It would increase

c)

It would be unaffected

d)

There is NOT enough information given to answer the question

3.

A higher price for batteries would tend to

a)

Increase the demand for flashlights

b)

Decrease the demand for Flashlights

c)

Increase the demand for electricity

d)

Increase the demand for batteries

4.

What will happen in the rice market if buyers are expecting higher prices in the near future?

a)

The demand for rice will increase

b)

The demand for rice will decrease

c)

The demand for rice will be unaffected

d)

The supply of rice will increase

5.

Refer to the Graph: the movement from point A to point B on the graph shows

a)

a decrease in demand

b)

an increase in demand.

c)

an increase in the quantity demanded

d)

a decrease in the quantity demanded

6.

Other things equal, when the price of a good rises, the quantity supplied of the good also rises. This is

a)

the law of increasing costs

b)

the law of diminishing returns

c)

the law of supply

d)

the law of demand

7.

On the graph, the movement from S to S 1 could be caused by

a)

a decrease in the price of the good

b)

an increase in income

c)

an improvement in technology

d)

an increase in input prices.

8.

If, at the current price, there is a shortage of a good

a)

the price is below the equilibrium price

b)

the market can be in equilibrium

c)

sellers are producing more than buyers wish to buy

d)

All of the above answers are correct

9.

According to the graph, the equilibrium price and quantity are

a)

$7, 20

b)

$7, 60

c)

$5, 40

d)

$3, 60

10.

According to the graph, at a price of $7

a)

there would be a shortage of 40 units

b)

there would be a surplus of 40 units

c)

there would be a surplus of 20 units

d)

the market would be in equilibrium

11.

In the table shown, if the price were $8

a)

a surplus of 30 units would exist and the price would tend to fall

b)

a surplus of 60 units would exist and price would tend to rise

c)

a surplus of 60 units would exist and the price would tend to fall

d)

a shortage of 30 units would exist and prices would tend to rise

12.

If the price is $15, the quantity supplied would be

a)

200

b)

400.

c)

500

d)

700

13.

At a price of $20

a)

the market would be in equilibrium

b)

600 units would be bought and sold

c)

there would be no pressure for the price to change

d)

All of the above are true

14.

When there is a shortage in a market

a)

The Price is too low

b)

The Price is too high

c)

The market could still be in equilibrium

d)

Quantity demanded equals quantity supplied

15.

Holding everything else constant, a change in price would

a)

result in a change in the supply

b)

result in a movement along a non moving supply curve

c)

result in a shift of demand

d)

have no effect on the quantity supplied

16.

when the supply curve for gasoline shifts from S 1 to S 2

a)

the price will increase to P3

b)

a surplus will occur at the new market price of P2

c)

the market price will stay at P1 due to the price ceiling

d)

a shortage will occur at the price ceiling of P2

17.

An effective price ceiling is shown in

a)

panel (a)

b)

panel (b)

c)

both panel (a) and panel (b)

d)

neither panel (a) nor panel (b)

18.

at what Price would you make the most money?

a)

$1

b)

$.25

c)

$1.50

d)

$2.75

19.

The more elastic the Demand for a product is

a)

the more likely it is to have shifts in Demand if the Price was to change

b)

The Less Likely it is to have shifts in Demand if the Price was to change

c)

The more likely it is to have shifts in Supply if the Price was to change

d)

The less likely it is to have shifts in Supply if the Price was to change

20.

The less elastic the Demand for a product is

a)

the more likely it is to have shifts in Demand if the Price was to change

b)

The Less Likely it is to have shifts in Demand if the Price was to change

c)

The more likely it is to have shifts in Supply if the Price was to change

d)

The less likely it is to have shifts in Supply if the Price was to change

21.

A Surplus is when

a)

The Price is lower than the equilibrium

b)

The Price is higher than the equilibrium

c)

The demand is less than the supply

d)

The demand meets the supply