WorksheetsEconomic Systems & Supply and Demand
Total questions: 20
Worksheet time: 10mins
What happens to the price of a product when the demand for it increases?
The price decreases
The price stays the same
The price fluctuates randomly
The price increases
Which factor can cause a decrease in demand for a product?
Increase in population
Increase in income
Increase in advertising
Increase in the price of substitutes
When the supply of a product exceeds the demand for it, what happens to the price?
The price increases
The price decreases
The price stays the same
The price fluctuates randomly
Which factor can cause an increase in supply for a product?
Increase in production costs
Decrease in competition
Decrease in government regulations
Increase in technological advancements
What is the equilibrium price?
The highest price a buyer is willing to pay
The lowest price a seller is willing to accept
The price where quantity demanded equals quantity supplied
The price determined solely by the seller's preferences
What is a command economy?
An economic system where supply and demand determine prices and allocation of resources.
An economic system where the government controls all aspects of production and distribution.
An economic system where individuals and businesses make their own economic decisions.
An economic system that relies on customs, traditions, and beliefs to guide economic activity.
What is a market economy?
An economic system where supply and demand determine prices and allocation of resources.
An economic system where the government controls all aspects of production and distribution.
An economic system where individuals and businesses make their own economic decisions.
An economic system that relies on customs, traditions, and beliefs to guide economic activity.
What is a mixed economy?
An economic system where supply and demand determine prices and allocation of resources.
An economic system where the government controls all aspects of production and distribution.
An economic system where individuals and businesses make their own economic decisions.
An economic system that combines elements of both command and market economies.
What is a traditional economy?
An economic system where supply and demand determine prices and allocation of resources.
An economic system where the government controls all aspects of production and distribution.
An economic system where individuals and businesses make their own economic decisions.
An economic system that relies on customs, traditions, and beliefs to guide economic activity.
Which economic system is most commonly found in the real world?
Command economy
Market economy
Mixed economy
Traditional economy
Which of the following best represents the law of demand?
As demand increases, supply increases.
As price decreases, quantity demanded increases.
As supply decreases, demand increases.
As price increases, quantity demanded increases.
Which factor can cause a shift in the demand curve?
Change in production technology
Change in consumer income
Change in the number of suppliers
Change in government regulations
If the price of a substitute good increases, what happens to the demand for the original good?
It decreases.
It remains unchanged.
It increases.
It depends on the supply of the original good.
Which of the following will cause a movement along the supply curve?
Better technology developed for more rapid production
Competitors leave the market
Producers have to spend more for production
All of these could cause a shift in the supply curve as they all affect the producers.
In this scenario, what would happen on this chart that represents leather jackets?
Supply curve would shift inward
Supply curve would shift outward
Demand curve would shift inward
Demand curve would shift outward
In this scenario, how would this chart representing leather jackets be affect?
Supply curve shifts inward
Supply curve shifts outward
Demand curve shift inward
Demand curve shifts outward
In this scenario, how would this chart representing leather jackets be affected?
Supply curve shifts inward
Supply curve shifts outward
Demand curve shifts inward
Demand curve shifts outward
In this scenario, what would happen in this chart representing leather jackets?
Supply curve shifts inward
Supply curve shifts outward
Demand curve shifts inward
Demand curve shifts outward
Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?
