wayground logo

Free Printable Worksheets

NEW

Font size

S
M
L
XL
Worksheets

Exam 2: Units 4-6

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

What does supply refer to in the context of market forces for supply and demand?

a)

The quantity of a good or service that consumers are willing and able to buy at various prices.

b)

The quantity of a good or service that producers are willing and able to offer for sale at various prices.

c)

The amount of money required to purchase a good or service.

d)

The total number of goods available in the market.

2.

What does demand refer to in the context of market forces for supply and demand?

a)

The quantity of a good or service that producers are willing and able to offer for sale at various prices.

b)

The total number of goods available in the market.

c)

The quantity of a good or service that consumers are willing and able to buy at various prices.

d)

The amount of money required to purchase a good or service.

3.

How can a change in supply or demand affect the market?

a)

It can change the equilibrium price and quantity.

b)

It can only affect the quality of goods and services.

c)

It can only change the preferences of consumers.

d)

It can only affect the number of producers in the market.

4.

What does elasticity measure in the context of supply and demand?

a)

The maximum price of a good

b)

The responsiveness of quantity demanded or supplied to a change in price

c)

The quantity of a good supplied at different prices

d)

The percentage change in quantity demanded over time

5.

What is a supply schedule?

a)

A list of prices for different goods

b)

A graph showing the demand for a product

c)

A table showing the quantity of a good supplied at different prices

d)

A method to calculate price elasticity

6.

What can cause movements along the supply and demand curves?

a)

Changes in consumer preferences only

b)

Changes in technology only

c)

Changes in price only

d)

Changes in factors such as input costs, technology, or consumer preferences

7.

What can cause shifts in the supply and demand curves?

a)

Changes in price only

b)

Changes in factors such as input costs, technology, or consumer preferences

c)

Movements along the curves

d)

The responsiveness of quantity demanded or supplied

8.

What is the difference between price ceilings and price floors?

a)

Price ceilings set a minimum price, while price floors set a maximum price

b)

Price ceilings and price floors both set a maximum price

c)

Price ceilings and price floors both set a minimum price

d)

Price ceilings set a maximum price, while price floors set a minimum price

9.

How is price elasticity using the midpoint method calculated?

a)

By dividing the percentage change in quantity demanded by the percentage change in price

b)

By multiplying the percentage change in quantity demanded by the percentage change in price

c)

By adding the percentage change in quantity demanded to the percentage change in price

d)

By subtracting the percentage change in quantity demanded from the percentage change in price

10.

What happens to the burden of a tax depending on the elasticity of demand and supply?

a)

It is always passed along to the consumers

b)

It is always passed along to the producers

c)

It can be shifted onto consumers or producers depending on the elasticity

d)

It does not affect consumers or producers

11.

What is likely to happen if the price of gasoline increases?

a)

Consumers may still need to buy it due to inelastic demand

b)

Consumers will stop buying gasoline altogether

c)

The quantity demanded for gasoline will increase

d)

The price of gasoline will automatically decrease

12.

When does a price control become binding?

a)

When it is set at the equilibrium price

b)

When it is set below the equilibrium price (ceiling) or above it (floor)

c)

When the government decides to intervene in the market

d)

When it leads to an increase in demand for the good

13.

How is revenue calculated?

a)

As the quantity of a good divided by the price

b)

As the price of a good plus the quantity sold

c)

As the price of a good multiplied by the quantity sold

d)

As the total cost of producing the good

14.

What are substitute goods?

a)

Goods that are consumed together

b)

Goods that are used in place of each other

c)

Goods that have no relation to each other

d)

Goods that are always sold together

15.

Which of the following is an example of complementary goods?

a)

Tea and coffee

b)

Smartphones and phone cases

c)

Bread and butter

d)

Pens and pencils

16.
A supply schedule is a table that shows the relationship between
a)
price and quantity supplied.
b)
input costs and quantity supplied.
c)
quantity demanded and quantity supplied.
d)
profit and quantity supplied.
17.
Which of the following events would cause a movement upward and to the left along the demand curve for olives?
a)
The number of people who purchase olives decreases.
b)
Consumer income decreases, and olives are a normal good.
c)
The price of pickles decreases, and pickles are a substitute for olives.
d)
The price of olives rises.
18.
Income elasticity of demand measures how
a)
the quantity demanded changes as consumer income changes.
b)
consumer purchasing power is affected by a change in the price of a good.
c)
the price of a good is affected when there is a change in consumer income.
d)
many units of a good a consumer can buy given a certain income level.
19.
A price ceiling is
a)
often imposed on markets in which “cutthroat competition” would prevail without a price ceiling.
b)
a legal maximum on the price at which a good can be sold.
c)
often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
d)
imposed to make sure everyone can earn a fair wage.
20.
Which of the following is not correct?
a)
Taxes levied on sellers and taxes levied on buyers are not equivalent.
b)
A tax places a wedge between the price that buyers pay and the price that sellers receive.
c)
The wedge between the buyers’ price and the sellers’ price is the same, regardless of whether the tax is levied on buyers or sellers.
d)
In the new after-tax equilibrium, buyers and sellers share the burden of the tax.
21.
Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are
a)
complementary goods.
b)
normal goods.
c)
inferior goods.
d)
substitute goods.
22.
Suppose the United States had a short-term shortage of farmers. Which market mechanisms would adjust to remove the shortage?
a)
The government would provide tax incentives to encourage people to become farmers.
b)
The government would subsidize the production of food.
c)
The prices of food and the wages of farmers would adjust.
d)
There are no market mechanisms to remove the shortage.