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WorksheetsPCIS 12th Economics - Demand and Supply
Total questions: 25
Worksheet time: 2hrs 5mins
When a consumer is able and willing to buy a good or service, he or she creates which of the following:
Consumption
Demand
Elasticity
Allocation
What are inferior goods?
Goods that are not well produced
Goods that no one wants to buy
Goods for which the demand rises when income rises
Goods for which the demand falls when income rises
What does it mean when the demand for a product is inelastic?
People will not buy any of the product when the price goes up
A price increase does not have a significant impact on buying habits
Customers are very sensitive to the price of the product
There are very few satisfactory substitutes for the product
What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?
Sell the goods now and try to invest the money instead of resupplying
Sell the goods now but try to get the higher price for them
Store the goods until the price rises
Store the goods indefinitely regardless of when the prices rise
What does elasticity of demand measure?
an increase in the quantity available
a decrease in the quantity demanded
how much buyers will cut back or increase their demand when prices rise or fall
the amount of time consumers need to change their demand for a good
Which item was once considered a luxury has now become a necessity in America?
Property
Cars
Telephone
Fresh Water
Demand for life-saving medicine is usually ______.
Higher in price
Inelastic
Elastic
Luxury
If the elasticity of demand of a good is equal to 1, it is described as _____?
Normal good
Unitary elastic
Complements
Equal
Which of the following is the best example of the law of supply?
A sandwich shop increases the number of sandwiches they supply every day when the price is increased
A food producer increases the number of acres of wheat he grows to supply a milling company
A catering company buys a new dishwasher to make their work easier
A milling company builds a new factory to process flour to export
When the selling price of a good goes up, what is the relationship to the quantity supplied?
The cost of production goes down
The profit made on each item goes down
It becomes practical to produce more goods
There is no relationship between the two
You would refer to a(n) _____ to find the quantity that a person would purchase at each price that could be offered in a market.
Possibility curve
Elasticity curve
Supply curve
Demand curve
Which of these is the best example of diminishing marginal utility?
A shortage of bike paths makes bicycles less useful
Bicycles become less useful as the get old and start to rust
Someone who has one bicycle will have less use for another
People with cars have less use for bicycles than people without cars
Technological process has reduced the cost of manufacturing computers. If demand is unchanged,
More computers will be sold at a higher price
Fewer computers will be sold at a higher price
More computers will be sold at a lower price
Fewer computers will be sold at a lower price
What categories of costs combine to create a firm’s total cost?
Fixed and variable costs
Facility costs
Fixed and defined costs
Salary and facilities
All of the following are examples of variable costs except __________.
Rent
Electricity
Labor
Heat
Which of the following best describes the ideal level of output?
Marginal revenue is more than marginal cost:
MR > MC
Marginal revenue is more than total cost:
MR > TC
Marginal revenue is equal to marginal cost:
MR = MC
Marginal revenue is less than total cost:
MR < TC
The change in output from hiring one more worker is known as ______.
Labor output
Increasing marginal return
Marginal product of labor
Diminishing margin return
Using the sample image attached, what is a market supply schedule?
It is a table that lists the quantity supplied for a good or service at different prices throughout the economy.
It is a table that lists the quantity supplied for a good or service at different prices in one local area.
It is a table that lists the quantity supplied for a good or service at a single price.
It is a schedule of when markets will demand goods and services throughout the year.
Which of the following leads to a decrease in supply?
an increase in the cost of raw materials
diminishing marginal returns
a decrease in the cost of raw materials
a change in the law of supply
The main goal for the firm is to maximize profits. How many beanbags should they produce to maximize profits?
10
8
7
9
In the short-run, a firm would remain in business as long as which one of the following costs is covered?
Total costs
Fixed costs
Variable costs
Operating costs
The following graphs illustrate the "effect of rising costs". Explain in your own words what those effects are based on price and supply:
________ is government intervention in a market that affects the production of a good.
Excise tax
Regulation
Subsidies
Inflation
In your own words, what is the difference between supply and demand?
Economics is not just about money, it's about _________?
