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Economics - Chapter 5 - Quiz

Total questions: 25

Worksheet time: 45mins

Name
Class
Date
1.
The Law of Supply states:
a)
as price increases, supply increases
b)
as prices decrease, supply increases
c)
as price increases, quantity demanded decreases
d)
as price decreases, quantity demanded decreases
2.

Amount that producers bring to the market at any given time

a)

quantity supplied

b)

supply curve

c)

quantity demanded

d)

production

3.
If technology improves, what effect does this typically have on supply?
a)
go up
b)
go down
c)
stay the same
4.

Which of these best describes the influence of high prices on the behavior of producers?

a)

They have no significant overall effect on producer behavior.

b)

They are an incentive for producers to produce more.

c)

They are an incentive for producers to buy less.

d)

They encourage producers to modify their supply schedules.

5.

Tendency of suppliers to offer more of a good at a higher price

a)

Law of Demand

b)

Law of Supply

c)

Market Supply Curve

d)

Supply Schedule

6.

A chart that lists how much of a good all suppliers will offer at different prices

a)

Law of Supply

b)

Market Supply Curve

c)

Market Demand Schedule

d)

Market Supply Schedule

7.

A chart that lists how much of a good a supplier will offer at different prices

a)

Supply

b)

Market Supply Curve

c)

Supply Curve

d)

Supply Schedule

8.

According to this supply curve, how many units will be produced at $20 per unit?

a)

10

b)

110

c)

20

d)

180

9.

How many hours of babysitting is Jane willing to provide at $10/hour?

a)

28

b)

35

c)

38

d)

39.25

10.

Cost of producing one more unit

a)

total cost (TC)

b)

marginal cost (mc)

c)

fixed cost

d)

variable cost

11.

Which of the following is an example of a fixed cost?

a)

Raw materials

b)

Electricity

c)

Rent

d)

workers that get paid by the hour

12.

The amount of money a business earns from selling one more unit:

a)

Marginal cost

b)

Marginal revenue

c)

Marginal product

d)

Total output

13.

Occurs when you continue to add one factor of production and you get a lower and lower ratio of additional output. (Example, as you hire additional workers, each additional worker produces less output that the previously hired one.)

a)

Marginal returns

b)

Diminishing returns

c)

Negative returns

d)

Positive returns

14.

What type of business owner typcially gets a subsidy from the government?

a)

Bankers

b)

Tech giants

c)

Farmers

d)

Private schools

15.

 A tax included in the price.

a)

Property tax

b)

income tax

c)

excise tax

d)

sales tax

16.

____ is the main source of revenue for the Government.

a)

Salary

b)

Tax

c)

Loans

d)

Grants

17.

According to the Law of Demand, when prices drop...

a)

demand will also drop

b)

demand will increase

c)

quantity demanded is unchanged

d)

supply increases

18.

When the price of a product increases, a consumer is able to buy less of it. Which effect does this describe?

a)

Cost Effect

b)

Inflationary Effect

c)

Income Effect

d)

Substitution Effect

19.

Economy where the government own some of the factors of production

a)
Communist
b)
Socialist
c)
Market
d)
Traditional
20.

What does the GDP measure in terms of production?

a)

Only the services produced within a country

b)

Only the goods produced within a country

c)

All of the "stuff" produced within a country

d)

The total number of companies within a country

21.

This circular flow model would be for a __________ economy

a)

Traditional

b)

Planned/Command

c)

Free Market

d)

Mixed Economy

22.

This guy is called the father of economics and he literally wrote the book on capitalism

a)

Karl Marx

b)

Tom Brady

c)

Kanye West

d)

Adam Smith

23.

Which animal is the symbol of the Democrats?

a)
b)
c)
d)
24.

Who are the 2 candidates running for the 2024 election?

a)

b)

c)

d)

e)

25.

The ___ says that the price of a product is determined by the relationship of the supply of a product and the demand for the product.

a)

standard of living

b)

trade-off

c)

systematic decision-making process

d)

law of supply & demand