WorksheetsUnit 2 Test
Total questions: 25
Worksheet time: 4hrs 1mins
The demand schedule shows the quantity demanded at all possible _________ that might prevail in the market at a given time.
Prices
Quantities
Sizes
Discounts
What do we call motivating influences that cause consumers to act?
Wants
Demands
Needs
Incentives
Which of the following is NOT a factor that impacts change in demand?
Consumer Income
Consumer Tastes
Number of Consumers
Production Possibilities
What is the only factor that changes the quantity demanded?
Consumer
Price
Production Costs
Supply
Which of the following is NOT a determinant of demand elasticity?
Does the product meet consumer needs
Can the purchase be delayed
Does the purchase use a large portion of income
Are adequate substitutes available
Which of the following products had an inelastic demand?
Gasoline
Insulin
Butter
Sports Cars
A ______ is a payment to an individual, business, or other group to encourage or protect a certain type of economic activity.
Tariff
Subsidy
Substitute
Which of the following factors can cause a change in supply?
Technology
Productivity
Government Regulations
All of the Above
The supply curve is likely to be ______ for many products that can be made quickly without huge amounts of capital or skilled labor.
Elastic
Inelastic
Unit Elastic
Factories closing are examples of ______ changes because the amount of capital used for production changes slowly.
Short run
Long run
Middle run
What is the first stage of production?
Decreasing marginal returns
Increasing marginal returns
Negative marginal returns
What type of costs are incurred by an organization even if there is little to no activity?
Marginal Costs
Variable Costs
Fixed Costs
Total Costs
What do we call the level of production that generates just enough revenue to cover operating costs?
Profit Margin
Break-Even Point
Total Cost
Marginal Product
Which of the following is NOT one of the advantages of prices?
Flexibility
Neutrality
Effectiveness
Efficiency
Which of the following basic questions does prices help producers answers?
How to Produce
What to Produce
For Whom to Produce
All of the above
Which of the following is not one of the problems with rationing?
Not everyone is given access to rations
Difficult to determine what's fair
Can be misused
Someone has to pay for the printing/ distribution of coupons
The quantity demanded varies inversely with its price.
True
False
Changes in income, tastes, expectations, and prices affect individual demand schedules and curves.
True
False
If a purchase can be delayed, the demand is inelastic.
True
False
All normal supply curves have a positive slope that goes up when you read the diagram from left to right.
True
False
Total product includes the extra output caused by adding one more unit of variable input.
True
False
Most firms are able to sell enough goods or services to maximize profits right away.
True
False
The _______ is the price that the government thinks is fair for a particular product
Price Ceiling
Price Floor
Target Price
Equilibrium Price
The point where the supply and demand curves meet is called the ______.
Supply Schedule
Equilibrium Price
Economic Model
Equilibrium Quantity
A situation where quantity demanded is greater than quantity supplied at a given price is a ______.
Equilibrium
Market Clearing Price
Surplus
Shortage
