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WorksheetsTEST 4. The Demand and Supply. PV
Total questions: 15
Worksheet time: 13mins
Which of the following is considered a demand shifter?
The price of the good itself.
The price of a substitute good.
The technology used in production.
The number of sellers in the market.
What economic term refers to the situation in which resources are insufficient to meet all wants and needs?
Scarcity
Demand
Surplus
Opportunity cost
What is the law of demand?
As the price of a good rises, the quantity demanded increases
As the price of a good rises, the quantity demanded decreases
There is no relationship between price and quantity demanded
What is the present value of $1,000 to be received in 3 years with an annual discount rate of 5%?
$863.84
$952.38
$848.93
When representing supply and demand on a graph, what does the intersection of the two curves indicate?
Maximum price
Equilibrium price and quantity
Price floor
What does the law of demand state about the relationship between price and quantity demanded?
Inverse relationship
Direct relationship
No relationship
In economics, what is the term used to describe a table that shows the quantity of a good that buyers are willing and able to purchase at various prices?
Demand schedule
Supply schedule
Price schedule
What is the law of supply?
As the price of a good rises, the quantity supplied increases
As the price of a good rises, the quantity supplied decreases
There is no relationship between price and quantity supplied
In the context of present value, what does 'r' represent in the formula?
Annual interest rate
Number of periods
Future value
Which of the following statements is true about the relationship between present value and the discount rate?
Higher discount rate leads to lower present value
Lower discount rate leads to lower present value
Discount rate does not affect present value
If the price of a related good increases, what happens to the demand curve for the original good, assuming they are substitutes?
It shifts to the left.
It shifts to the right.
There is a movement along the demand curve.
It becomes perfectly elastic.
In a competitive market, the equilibrium price is determined where:
The quantity demanded exceeds the quantity supplied.
The quantity supplied exceeds the quantity demanded
The quantity demanded equals the quantity supplied
The price ceiling is set by the government
Consumer surplus is represented graphically as the area:
Above the supply curve and below the equilibrium price.
Below the demand curve and above the equilibrium price
Above the demand curve and below the equilibrium price
Below the supply curve and above the equilibrium price
Market research that determines how many units of a product consumers are willing to buy at different prices helps in constructing the:
Production possibilities frontier.
Cost curve.
Demand curve.
Supply curve.
What is the primary difference between a "change in quantity demanded" and a "change in demand"?
A change in quantity demanded is caused by a shift in the supply curve, while a change in demand is caused by a shift in the demand curve.
A change in quantity demanded is only applicable to goods with elastic demand, while a change in demand applies to goods with inelastic demand
A change in quantity demanded is a movement along the demand curve due to a price change, while a change in demand is a shift of the entire demand curve due to changes in demand shifters.
A change in quantity demanded only affects the price of a good, while a change in demand only affects the quantity sold
