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Supply and Demand Quiz Review

Total questions: 29

Worksheet time: 15mins

Name
Class
Date
1.

What does the removal of some government controls over a business refer to?

a)

Equilibrium

b)

Disequilibrium

c)

Regulation

d)

Deregulation

2.

At which point do the supply and demand curves meet?

a)

Equilibrium

b)

Disequilibrium

c)

Regulation

d)

Deregulation

3.

What is the government's role in business that affects production?

a)

Equilibrium

b)

Disequilibrium

c)

Regulation

d)

Deregulation

4.

What term describes a price or quantity that does not meet equilibrium; supply and demand do not meet?

a)

Equilibrium

b)

Disequilibrium

c)

Regulation

d)

Deregulation

5.

What method is typically used for resource allocation in a market system?

a)

Lottery

b)

First Come, First Served

c)

Price

d)

Authority

6.

What is a minimum price at which a product can be sold called?

(a)  

7.

What is a maximum price at which a product can be sold called?

(a)  

8.

Which quantity represents equilibrium on the graph?

a)

Q3

b)

Q1

c)

Q2

d)

Q0

9.

Points B and A on the graph represent what?

a)

Price floor

b)

Price ceiling

c)

Deregulation

d)

Demand Schedule

10.

What do points B and A represent in terms of market conditions?

a)

Shortage

b)

Market Structure

c)

Surplus

d)

Zero Quantity

11.

Points B and A represent which economic condition?

a)

Shortage

b)

Market Structure

c)

Surplus

d)

Zero Quantity

12.

Cynthia writes computer programs for mobile phones and has received five job offers in the last week. This is most likely because:

a)

Demand for computer programmers is high

b)

Supply of computer programmers is high

c)

Demand for computer programmers is low

d)

Demand and supply for computer programmers are equal

13.

What does a shift to the right in the supply curve indicate?

a)

An increase in supply.

b)

A decrease in supply.

c)

An increase in the quantity supplied at every price.

d)

A decrease in the quantity supplied at every price.

14.

If new Jordan shoes are released and the supply cannot keep up with the number of people who want to buy it, what is likely to happen to the price?

a)

The price will decrease because it is a new game.

b)

The price will increase because the demand is higher than the supply.

c)

The price will stay the same because it is popular.

d)

The price will decrease because the game is in high demand.

15.

What happens to the price of a product when the demand increases but the supply remains the same?

a)

The price decreases.

b)

The price increases.

c)

The price remains the same.

d)

There is not enough information to determine.

16.

If the supply of a product exceeds the demand, what is likely to happen to the price of the product?

a)

The price will increase.

b)

The price will decrease.

c)

The price will remain unchanged.

d)

The product will be discontinued.

17.

What does the law of demand state?

a)

As the price of a product increases, its supply also increases.

b)

As the price of a product increases, the demand for it decreases.

c)

As the price of a product decreases, its supply decreases.

d)

As the price of a product decreases, the demand for it remains unchanged.

18.

Which of the following factors can cause a shift in the demand curve for a product?

a)

Change in the price of the product itself.

b)

Change in consumers' income.

c)

Change in the price of a substitute product.

d)

Both B and C are correct.

19.

What is a surplus in the context of supply and demand?

a)

A situation where the demand for a product exceeds its supply.

b)

A situation where the supply of a product exceeds its demand.

c)

A situation where the price of a product is set too high.

d)

A situation where the price of a product is set too low.

20.

What can cause a movement along the demand curve for a product?

a)

A change in the product's price.

b)

A change in consumers' income.

c)

A change in the price of related goods.

d)

A change in consumer preferences.

21.

What is meant by "market equilibrium"?

a)

When the government sets the price for all goods and services.

b)

When the demand for a product is exactly equal to its supply.

c)

When there is a surplus of goods in the market.

d)

When there is a shortage of goods in the market.

22.

What happens when there is a decrease in the supply of a product but demand remains constant?

a)

The price of the product decreases.

b)

The price of the product increases.

c)

The demand for the product decreases.

d)

The demand for the product increases.

23.

What is a price ceiling?

a)

The maximum price a seller is allowed to charge for a product or service, set by the government.

b)

The minimum price a seller is allowed to charge for a product or service, set by the government.

c)

The equilibrium price in a free market.

d)

The highest price consumers are willing to pay for a product.

24.

What is a price floor?

a)

The maximum price a seller is allowed to charge for a product or service.

b)

The minimum price a seller is required to charge for a product or service, often set by the government.

c)

The equilibrium price in a free market.

d)

The lowest price consumers are willing to pay for a product.

25.
This part of the market determines DEMAND
a)
buyers
b)
sellers
c)
suppliers
d)
store owners
26.

Land, labor, capital, and other obstacles that may prevent new competitors from entering a market

a)

Entry Barriers

b)

Product Differentiation

c)

Oligopoly

d)

Monopoly

27.

A market in which only a few sellers offer similar or identical products

a)

Entry Barriers

b)

Product Differentiation

c)

Oligopoly

d)

Monopoly

28.

A market in which there are many buyers but only one seller

a)

Entry Barriers

b)

Product Differentiation

c)

Oligopoly

d)

Monopoly

29.

The creation of real or perceived product differences to attract a target market

a)

Entry Barriers

b)

Product Differentiation

c)

Oligopoly

d)

Monopoly