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WorksheetsIGCSE Economics - Supply and Demand
Total questions: 79
Worksheet time: 49mins
Of the four factors of production, which of these are not a factor of production?
Land
Capital
Development
Labour
What is a feature of a market economy?
Government planning
Everyone has a job
Producers respond to consumer demand
Resources are allocated according to need
Which event would cause an increase in demand for train tickets?
A decrease in population
An decrease in the price of bicycles
An decrease in disposable income
More advertising by the rail companies
What is a complement ?
Being nice to someone
A good that is used in place of something
A luxury good
A good that is demanded together
What is meant by contraction in Demand?
A reduction in demand due to a rise in the price of the product
A reduction in demand due to a fall in the income of the population
A rise in demand due to a rise in the price of a substitute product
A rise in demand due to a fall in the price of a complement
What would cause the price to change from P1 to P2?
An increase in income
An increase in costs of production
Good weather
An increase in technology
What does an economist mean by capital?
the coordination of the factors of production
natural resources that will not be replaced
using workers to work in firms
Machines, tools and factories
What is scarcity?
When there is not enough of something.
what you give up in order to get what you want most.
the amount of a good or service that is available.
How much people want the good or service.
The want or willingness a consumer has to purchase a good or a service is called?
The amount of goods or services available for a producer to sell is called?
What could cause the shift from D1 to D2?
A change in preferences
A change in price
A change in quantity demanded
A change in quantity supplied
This graph represents...?
Changes in quantity demanded
Changes in quantity supplied
Changes in demand
Changes in supply
This graph represents...?
Changes in quantity demanded
Changes in quantity supplied
Changes in demand
Changes in supply
If the supply curve on this graph represents iPhones, what would cause the change from S to S1 (red to purple line)?
An increase in computer chips
An increase in the cost of producing an iPhone
Employees figure out a way to work more efficiently
The price of iPhones increases
The point in the middle of the two curves represents or shows....?
Market Equilibrium
An increase in supply
A shortage
A surplus
New technology advances the rate at which furniture can be assembled. Why does this change the supply?
There is a change in cost of production.
The number of producers changes.
The expectations of consumers changes.
The output rate declines.
Mr. Sherman goes to the ticket booth to buy tickets for a Lakers game. Mr. Sherman is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available?
The way resources are allocated to the production of the goods and services most wanted by consumers
Allocation of resources
Allocation of goods
Allocation of services
Allocation of production
Opportunity cost is the scarifies of
the lowest cost alternative
the next alternative
the best alternative
the next best alternative
The following are four ways factors of production are used.
What is likely to require the greatest use of the factor enterprise?
a carpenter making wooden articles in his leisure time for sale at a monthly market
a food shop owner sometimes selling flowers in the shop
a householder harvesting vegetables grown at home
a corn farmer negotiating with other farmers to hire expensive machinery
A person makes sandwiches at home for five hours each day. She makes 20 sandwiches per
hour, and she sells each sandwich for $2 each.
What is the opportunity cost if she takes a holiday on a working day?
$40
20 sandwiches
$2
100 sandwiches
To help reduce the price of oil, new supplies are needed. However, in 2013, objectors opposed
attempts to explore new sites because of the environmental damage the exploration might cause.
How does this illustrate the basic economic problem?
There are external costs involved in production.
The exploration involves demand and supply.
Oil is a limited resource.
Oil is expensive.
The diagram shows production possibility curves (PPC) for a country that can produce
agricultural products or manufactured products. Its current PPC passes through points Q and S but the country is currently experiencing
unemployment. If there is now full employment at the same time as new agricultural techniques enable an
increase in productivity, what would be the movement on the PPC diagram?
Q to R
P to R
P to S
S to R
New oil reserves are discovered.
What has increased in supply?
(a)
What is the basic economic problem?
Provide the keywords.
(a)
Why are wants not fully satisfied in an economy?
Governments cannot print enough money to pay for goods and services.
An economy can only produce a limited amount of goods and services.
Workers are too skilled for the requirements of the jobs available.
There is an over-production of goods and services by business organisations.
What are the factors of productions?
(a)
The law of demand argues that as prices rise
the quantity demanded will fall
the quantity demanded will rise
the demand curve will shift to the right
quantity demanded will fall due to a decrease in demand
The 'law of supply' suggests that
price and quantity supplied are directly related
price and quantity supplied are inversely related
movements along the supply curve are caused by a price fall
supply will expand until market equilibrium is reached
At equilibrium price:
Quantity supplied = quantity demanded
Price increases to soak up excess demand
Price decreases to soak up excess supply
Demand increases in response to the price of related goods
Its a sunny day,many people buy sunglasses,but there were only few sunglasses left,the price of sunglasses will be _______
High
Low
Free
When the demand curve shifts to the left, this suggests demand has
increased
decreased
Quantity demanded has increased
Quantity demanded has decreased
When the demand curve has shifted to the right, this suggests demand has
increased
decreased
quantity demanded has increased
quantity demanded has increased
When price increases, quantity demanded
increases
decreases
supply would decreases, not quantity supplied
supply would increase, not quantity supplied
When the price of Nike brand shoes increases, we will probably go purchase a brand like Adidas or Pumas instead. Which of the following best explains this behavior?
Substitution Effect
Income Effect
Complement Goods
Consumer expectations
When price increases, quantity supplied
increases
decreases
When price decreases, quantity supplied
increases
decreases
If you are going to buy a new bed mattress, and the salesman tells you there will actually be a sale on mattresses in a week, what will that do to your demand for mattresses in that moment?
Decrease
Increase
Stay the same
Yesterday, a new restaurant opened in town. There was a long line of people waiting to be seated. What was scarce?
People
Food
Seats
When a lot of people want an item, the DEMAND is __?__.
High
Low
When you have a lot of an item, the SUPPLY is __?__.
High
Low
What determines the prices of goods and services?
Supply
Demand
Supply and demand
Goods
According to the substitution effect, if two items satisfy the same need and the price of one rises,
people will buy more of the higher-priced item.
people will buy more of the lower-priced item.
the demand will go up.
people will buy something else.
The amount of goods and services people can actually buy is their
voluntary exchange.
purchasing power.
utility.
substitution effect.
A shift to the left in the demand curve indicates a(n)
decrease in price.
decrease in demand.
increase in population.
increase in demand.
When a product becomes a fad, the demand curve for that product
slopes upward.
becomes a straight line.
shifts to the right.
shifts to the left.
If two products are complementary goods, how will a decrease in the price of one affect the other?
demand will increase
price will increase
demand will decrease
price will decrease
