WorksheetsPractice Test: Supply and Demand
Total questions: 29
Worksheet time: 15mins
Name
Class
Date
1.
Supply and demand are __________ related.
a)
A. Not
b)
B. Rarely
c)
C. Inversely
d)
D. Uniformly
2.
Which of the following describes the amount of a good producers are able and willing to sell at various prices during a certain period?
a)
A. Price
b)
B. Cost
c)
C. Supply
d)
D. Demand
3.
Which of the following is the amount of a product a consumer is willing an able to purchase at given prices?
a)
A. Price
b)
B. Cost
c)
C. Supply
d)
D. Demand
4.
Where the supply curve intersects the demand curve is called......
a)
shortage
b)
surplus
c)
equilibrium
d)
demand
5.
At what price is the equilibrium for the supply and demand graph?
a)
$10
b)
5
c)
$19
d)
10
6.
At what quantity sold is the equilibrium for the supply and demand graph?
a)
$10
b)
5
c)
$19
d)
10
7.
What happens when there is an excess in demand?
a)
The price tends to rise.
b)
The price tends to fall.
c)
The quantity supplied tends to rise.
d)
The quantity supplied tends to fall.
8.
What happens when there is an excess in supply?
a)
The price tends to rise.
b)
The price tends to fall.
c)
The quantity supplied tends to rise.
d)
The quantity supplied tends to fall.
9.
Which of the following is true about the demand curve?
a)
A. As the price rises, the good’s demand increases
b)
B. As the price rises, the good’s demand decreases
c)
C. As the cost rises, the good’s demand increases
d)
D. As the supply quantity rises, the good’s demand decreases
10.
Toothbrushes and toothpaste are examples of which of the following?
a)
A. Complementary goods
b)
B. Substitute goods
c)
C. Shift goods
d)
D. Raw goods
11.
Which of the following measures the responsiveness of consumers to changes in price?
a)
A. Utility of demand
b)
B. Utility of supply
c)
C. Elasticity of demand
d)
D. Elasticity of supply
12.
How is profit calculated?
a)
A. Total costs minus total revenue
b)
B. Total revenue minus total costs
c)
C. Total supply plus total demand
d)
D. Total demand plus total supply
13.
Which of the following is true about the supply curve?
a)
A. As the supply quantity rises, so does the price
b)
B. As the price rises, so does the supply quantity
c)
C. As the price rises, so does the demand
d)
D. As the cost rises, so does the demand
14.
Which of the following does the law of supply assume?
a)
A. Nothing is constant
b)
B. Producers try to maximize their profits
c)
C. Lower price means larger quantity supplied
d)
D. Higher price means larger quantity demanded
15.
If the price of hamburgers rise, but the price of hot dogs remains the same, which are suppliers more likely to supply?
a)
A. Hamburgers
b)
B. Hot dogs
16.
The place where the supply curve intersects the demand curve is known as which of the following?
a)
A. Marginal cost
b)
B. Elasticity of supply
c)
C. Utility
d)
D. Equilibrium
17.
Customer willingness depends on which of the following?
a)
A. Advertising and promotion
b)
B. Prices and personal financial habits
c)
C. Inflation and currency conversion
d)
D. All of the above
18.
Which of the following are a good indicator of economic health and employ a significant percentage of the American workforce?
a)
A. Builders
b)
B. Manufacturers
c)
C. Traders
d)
D. Producers
19.
What is the law of demand
a)
always buy at the lowest price
b)
higher price means higher demand
c)
lower price means lower demand
d)
lower price means higher demand
20.
The quantity demanded is
a)
independent of the price.
b)
amount that buyers will buy at a certain price
c)
independent on buyers plans
d)
equal to the equilibrium price
21.
Which of the following does not shift the demand curve?
a)
tastes or preferences
b)
income
c)
prices
d)
price of substitute
22.
Which of the following describes the amount of a good producers are able and willing to sell at various prices during a certain period?
a)
A. Price
b)
B. Cost
c)
C. Supply
d)
D. Demand
23.
Which of the following would cause consumers to demand fewer slices of pizza.
a)
an increase in the price of pizza slices
b)
an increase in the supply of pizza slices
c)
a decrease in the supply of tacos
d)
a decrease in the price of pizza slices
24.
Which of the following is the likely result of a successful advertising campaign for an electronic game?
a)
demand increases
b)
demand decreases
c)
supply increases
d)
supply decreases
25.
A wildfire has put a major lumber producer out of business. How might an economist show one consequence?
a)
demand increases
b)
demand decreases
c)
supply increases
d)
supply decreases
26.
How would a new government subsidy for rice farmers affect the market for rice?
a)
It would decrease the supply by encouraging farmers to grow another grain.
b)
It would decrease the supply by increasing rice farmers' production costs.
c)
It would increase the supply by increasing the demand for rice.
d)
It would increase the supply by decreasing rice farmers' production costs.
27.
How are price ceilings and price floors similar?
a)
Both involve the government's setting of a maximum price.
b)
Both represent input changes that affect demand.
c)
Both bring about disequilibrium in the market.
28.
Which of the following explains why a free market economy is more efficient than a centrally planned economy?
a)
It relies on prices to allocate resources.
b)
It allows experts to determine what goods to produce.
c)
It prevents consumers from engaging in barter.
d)
It keeps prices from going up and down as demand changes.
29.
Which of the following is NOT true of the government?
a)
A. It increases/decreases tax rates
b)
B. It controls the retirement of all U.S. citizens
c)
C. It regulates the amount of money in the economy with the Federal Reserve Bank
d)
D. It negotiates international treaties and trade agreements
100 %
