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WorksheetsEcon Quiz March 3rd - Perfectly Competitive Markets & Demand
Total questions: 14
Worksheet time: 11mins
Name
Class
Date
1.
What is the central topic of microeconomics?
a)
the interaction of supply and demand
b)
the relationship between interest rates and inflation
c)
changes in gross domestic product
d)
the overall performance of the economy
e)
shifts in aggregate demand and aggregate supply
2.
A market consists of all
a)
buyers of a good
b)
sellers of a good
c)
buyers and sellers of a particular good
d)
buyers and sellers in the economy
e)
companies in a specific industry
3.
Which of the following characteristics is NOT present in a perfectly competitive market?
a)
There are a large number of sellers.
b)
Buyers are well informed about the market price.
c)
Sellers have market power.
d)
No single buyer can influence the price.
e)
The good is standardized.
4.
The BEST example of a perfectly competitive market is the market for
a)
gasoline
b)
cereal
c)
tennis shoes
d)
electricity
e)
cell phones
5.
What is the law of demand?
a)
Demand shifts to the right when more buyers enter the market.
b)
Quantity demanded rises as income rises.
c)
Quantity demanded falls as a good’s price rises.
d)
Demand shifts to the left as a good’s price rises.
e)
Quantity demanded falls as a substitute good’s price falls.
6.
To which economic concept is the law of demand MOST directly related?
a)
opportunity cost
b)
rationality
c)
gains from trade
d)
scarcity
e)
Pareto efficiency
7.
The table that shows the quantity demanded at each price is called the
a)
equilibrium calendar
b)
price bulletin
c)
demand schedule
d)
own-price graph
e)
market table
8.
Goods for which quantity demanded falls as income rises are called
a)
inferior goods
b)
luxury goods
c)
complementary goods
d)
normal goods
e)
substitute goods
9.
If the decline in the price of one good causes a decrease in quantity demanded of another good, these goods are considered
a)
luxuries
b)
substitutes
c)
necessities
d)
complements
e)
normal
10.
Which of the following pairs of goods are substitutes?
a)
pencils and notebooks
b)
tea and coffee
c)
automobile insurance and cars
d)
movies and popcorn
e)
peanut butter and jelly
11.
Suppose Steve expects the price of gasoline to increase next month. What can we say about his demand curve today?
a)
It shifts downward.
b)
It shifts to the left.
c)
It shifts upward.
d)
It stays constant.
e)
It shifts to the right.
12.
All of the following goods could be considered inferior goods EXCEPT
a)
instant ramen
b)
bologna
c)
bus rides
d)
electronics
e)
fast food
13.
Changes in all of the following factors would cause the demand curve to shift EXCEPT
a)
the prices of related goods
b)
tastes
c)
expectations
d)
a good’s own price
e)
the income of buyers
14.
If the price of Coke increases, it is MOST likely that the
a)
quantity demanded of Coke increases
b)
demand curve for juice shifts to the right
c)
quantity demanded of Pepsi decreases
d)
price of soda tumblers increases
e)
demand curve for Coke shifts to the left
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