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Economics Unit 2 Test

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

If you were to graph this demand schedule, the demand curve would

a)

slope upward from left to right.

b)

slope downward from left to right.

c)

be horizontal.

d)

be vertical.

2.

Which of the following choices could cause the movement shown in this graph?

a)

a decrease in income

b)

an increase in population

c)

an increase in the price of a substitute

d)

a decrease in the price of a complement

3.

Based on this graph, how many Beanie Babies were demanded at a price of $6 before they became a fad?

a)

100

b)

200

c)

300

d)

400

4.

The movement in the graph shows that the quantity demanded of butter decreased because the

a)

price of butter increased.

b)

price of margarine decreased.

c)

price of margarine increased.

d)

price of butter decreased.

5.

Which of the following choices could cause the movement shown in this graph?

a)

an increase in the price of Blu-ray discs

b)

a decrease in the price of Blu-ray discs

c)

an increase in the price of Blu-ray players

d)

a decrease in the price of Blu-ray players

6.

On Curve A in the graph, suppose the price dropped from $10 to $7. Would quantity demanded increase or decrease and by how much? 

a)

Quantity demanded would decrease by 1 unit.

b)

Quantity demanded would increase by 1 unit.

c)

Quantity demanded would decrease by 5 units.

d)

Quantity demanded would increase by 5 units.

7.

Find the price of $15 on the demand schedule. What point does this price and quantity correspond to in the graph?

a)

V

b)

W

c)

X

d)

Y

8.

What does the movement from b' to b on the graph represent?

a)

an increase in demand

b)

an increase in quantity demanded

c)

a decrease in demand

d)

a decrease in quantity demanded

9.

Study the illustration. At a price of $25, how much more of the product is demanded on curve D'D' than on curve DD? 

a)

2 units

b)

3 units

c)

1 unit

d)

4 units

10.

According to this demand curve, how many T-shirts will be demanded at a price of $10?

a)

400

b)

600

c)

800

d)

1000

11.

According to this demand curve, if the price of T-shirts increases from $14 to $16, the quantity demanded will

a)

fall from 600 to 400.

b)

rise from 400 to 600.

c)

fall from 400 to 200.

d)

rise from 200 to 400.

12.

According to this supply curve, 400 t-shirts will be supplied at what price?

a)

$10

b)

$12

c)

$14

d)

$16

13.

According to this supply curve, if the price of T-shirts decreases from $18 to $16, the quantity supplied will

a)

rise from 800 to 1000.

b)

fall from 1000 to 800.

c)

rise from 600 to 800.

d)

fall from 800 to 600.

14.

Which of the following choices could cause the movement shown in graph C?

a)

technology improves production

b)

inputs become cheaper

c)

the number of firms increases

d)

taxes increase

15.

The movement shown in these graphs represents a change in what?

a)

supply

b)

demand

c)

Quantity supplied

d)

Quantity demanded

16.

Which of the following choices could cause the movement shown in these graphs?

a)

inputs become more expensive

b)

the number of firms decreases

c)

technology improves production

d)

taxes increase

17.

Suppose the demand curve shifts from D1 to D2, as shown on the graph. How do the quantity supplied and quantity demanded change at the new equilibrium price?

a)

Quantity supplied increases and quantity demanded decreases

b)

Quantity supplied decreases and quantity demanded increases

c)

Both quantity supplied and quantity demanded increase.

d)

Both quantity supplied and quantity demanded decrease.

18.

What economic principle does the graph illustrate?

a)

law of supply

b)

law of diminishing marginal utility

c)

law of diminishing returns

d)

law of demand

19.

If you were to graph this supply schedule, the supply curve would

a)

be horizontal.

b)

be vertical.

c)

slope upward from left to right.

d)

slope downward from left to right.

20.

The change from the old demand curve to the new demand curve shown in the table represents a

a)

movement upward along the demand curve.

b)

movement downward along the demand curve.

c)

shift of the demand curve to the left.

d)

shift of the demand curve to the right.

21.

The interaction of supply and demand determines the

a)

elasticity.

b)

price ceiling.

c)

equilibrium price.

d)

marginal utility.

22.

When the price of a good is too high for consumers, they look for

a)

inelastic demand.

b)

substitutes.

c)

inflation.

d)

luxury items.

23.

The quantity demanded of a product is affected by

a)

output versus input.

b)

surplus quantities.

c)

price.

d)

shortages.

24.

Diminishing marginal utility refers to the fact that

a)

demand declines as income falls.

b)

additional satisfaction declines as additional units of an item are consumed.

c)

people have unlimited needs.

d)

in equilibrium, supply equals demand.

25.

According to the law of supply, higher prices prompt producers to

a)

increase demand.

b)

maintain current production

c)

produce less.

d)

produce more.

26.

Which of the following choices could cause the movement shown in the graph? 

a)

a decrease in income

b)

an increase in population

c)

a decrease in the price of a substitute

d)

an increase in the price of a complement

27.

The movement shown in this graph represents a change in what?

a)

quantity demanded

b)

marginal utility

c)

demand

d)

demand elasticity

28.

Which products shown in the table are likely to have elastic demand?

a)

gasoline in general, services of medical doctors

b)

fresh tomatoes, gasoline from a particular station, butter

c)

fresh tomatoes, gasoline in general, butter

d)

gasoline from a particular station, gasoline in general, butter

29.

Which products shown in the table are likely to have inelastic demand?

a)

gasoline in general, services of medical doctors

b)

fresh tomatoes, gasoline from a particular station, butter

c)

fresh tomatoes, gasoline in general, butter

d)

gasoline from a particular station, gasoline in general, butter

30.

If the price of an item rises, quantity demanded usually 

a)

reflects the presence of new suppliers

b)

rises.

c)

remains unchanged.

d)

falls.

31.

The principle that states that the more you have of something, the less satisfaction you will get from an additional unit is the

a)

law of demand.

b)

law of diminishing marginal utility.

c)

law of equilibrium.

d)

price elasticity.

32.

Demand for one particular brand of coffee is probably 

a)

elastic.

b)

inelastic.

c)

marginal utility.

d)

substitutable.

33.

Generally, the more substitutes there are for a good, the

a)

more elastic the demand.

b)

less valuable it is.

c)

more complements there are.

d)

less prices change.

34.

If the price of a product is above its equilibrium price, the result is a

a)

demand.

b)

surplus.

c)

shortage.

d)

black market.

35.

When Barbie dolls first became wildly popular overseas, how did this new popularity probably affect the demand curve for Barbie dolls?

a)

The demand curve probably stayed about the same, indicating that the dolls were substitutes for other toys.

b)

The demand curve probably shifted to the left, indicating a decrease in demand.

c)

The demand curve probably shifted up, indicating an increase in demand.

d)

The demand curve probably shifted to the right, indicating an increase in demand.