WorksheetsEconomics 10 Q1 - Demand
Total questions: 10
Worksheet time: 10mins
1. Which of the following is an example of the factor of production known as "land"?
Factory workers
A machine used for production
A river used to generate hydroelectric power
The skills and knowledge of a software engineer
Opportunity cost is best defined as:
The total money spent on goods and services
The benefit of the next best alternative that is foregone when a choice is made
The additional benefit gained from consuming one more unit of a good
The price of a product in a competitive market
If a country chooses to produce 100,000 cars instead of 50,000 trucks, the opportunity cost of producing the cars is:
The cost of materials used to produce cars
The total number of trucks produced
The 50,000 trucks that could have been produced
The profit earned from selling cars
The law of demand states that, ceteris paribus:
As the price of a good increases, the demand for that good also increases
As the price of a good decreases, the demand for that good increases
As the price of a good decreases, supply increases
As the price of a good increases, the supply decreases
A movement along the demand curve is caused by:
A change in consumer income
A change in the price of the good itself
A change in the price of a substitute good
A change in consumer preferences
Which of the following will cause a shift to the right in the demand curve for smartphones?
An increase in the price of smartphones
A fall in consumer incomes
A rise in the price of a complementary good, such as phone cases
A positive change in consumer tastes favoring smartphones
7. Which of the following would most likely lead to a decrease in the demand for cars?
An increase in the price of gasoline
A decrease in the price of cars
A rise in consumer incomes
A decrease in the price of car insurance
If a product is considered a luxury good, what happens to demand when consumer incomes increase?
Demand decreases
Demand remains unchanged
Demand increases significantly
Demand increases only slightly
A good is considered "inferior" if:
Its demand increases when the price decreases
Its demand decreases as consumer incomes rise
It has no close substitutes
Its demand increases when consumer incomes rise
Which of the following could cause a leftward shift in the demand curve for a good?
A decrease in the price of a substitute
An increase in consumer incomes for an inferior good
A positive change in consumer preferences
A decrease in the price of the good itself
