WorksheetsUnit 2 Test Demand, Supply and Price
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
What is a basic principle of the law of demand?
a)
The higher the price the more people will want the good.
b)
Everyone has a limited income to buy goods and services.
c)
When Services are bad Demand on the Servers increases.
d)
When the price of a good or service is lower, people will buy more of it.
2.
When a consumer is able and willing to purchase a good or service with is the consumer creating?
a)
Consumption
b)
Demand
c)
Elasticity
d)
Allocation
3.
How is the FUTURE price related to CURRENT demand?
a)
If the price is expected to rise, current demand will drop.
b)
If the price is expected to fall, current demand will rise.
c)
If the price is expected to rise, current demand will rise.
d)
Future price is not related to current demand
4.
What kind of system is the United States economy based on?
a)
Centralized
b)
Oligopoly
c)
Market
d)
Production
5.
How did the existence of the baby boom generation change demand in the United States?
a)
Demand was raised for different goods and services with each age the baby boomers reached.
b)
Creation and Closure of Garden City West High School
c)
An Increase in demand of government services Baby Boomers need, have led the nation into Trillions of dollars in debt.
d)
All of the Above
6.
What does it mean when the demand for a product is inelastic?
a)
People will NOT buy any of the product when the price goes up.
b)
A price increase does not have a significant impact on buying habits.
c)
Customers are sensitive to a change in price.
d)
There are few substitutes for a delicious Peanut Butter & Jelly Sandwich
7.
Which of the following is a good that might NOT be bought when prices rise?
a)
Substitute
b)
Inferior
c)
Income
d)
Luxury
8.
What kind of changes would be expected in the demand of a country that has a young growing population?
a)
Rise in demand for nursing homes.
b)
Rise in supply of pizza
c)
Rise in demand for shelter
d)
Decrease in demand for cars
9.
What is a company's total revenue?
a)
the price of the company's best selling good
b)
the amount a company receives for selling its goods
c)
the company's expenses
d)
the company's profit percentage over the long run
10.
What example of an embargo was the most consequential in American History?
a)
Canada Water Embargo
b)
Three Mile Island
c)
OPEC oil Embargo
d)
England Taxing Coffee
11.
When prices rise, what happens to income
a)
Income goes up
b)
Income goes down
c)
Rises to meet prices
d)
Current income buys less
12.
When the selling price of a good goes up, what is the relationship to the quantity supplied?
a)
Cost of production goes down
b)
Profit made on each item goes down.
c)
It becomes practical for suppliers to produce more to make more money.
d)
There is no relationship between the two.
13.
Which of the following is the best example of the law of supply?
a)
A local coffee shop produces more pastries because they realize customers are wiling to pay a higher price
b)
A catering company buys a dishwasher to make their job easier.
c)
Ford invents a faster assembly line.
d)
A Farmer buys 100 more acres.
14.
What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?
a)
Sell goods now and try to invest the money later.
b)
Sell goods now but hope they do not sell out
c)
Store the goods until the prices rise and sellers can make more money.
d)
Store the goods forever to take up space in a U-haul
15.
What factor has the greatest influence on elasticity and inelasticity of supply?
a)
Profit
b)
Time
c)
Labor
d)
Financing available
16.
Which of the following is a fixed cost for a store?
a)
Short-term workers
b)
Rent
c)
Advertising
d)
Inventory
17.
What is the most expensive variable cost on a business?
a)
Taxes
b)
Rent
c)
Employees
d)
Semi Trucks
18.
When buyers will buy exactly as much as sellers are willing to sell, what is the condition that has been reached?
a)
Supply and demand
b)
Excess demand
c)
Excess supply
d)
Equilibrium
19.
Which of the following is an example of a good whose price goes down because of improvements in technology?
a)
Computer Printers
b)
Running shoes
c)
Hard-bound books
d)
Typewriters
20.
What is the name of the smallest amount that can legally be paid to workers for an hour of work?
a)
Minimum wage
b)
Excess Demand
c)
$11/Hour
d)
Equilibrium
21.
The only relevant example of a price ceiling that worked was?
a)
Rent Control instituted by the US Government during World War 2 to combat inflation.
b)
$1.11 Slurpees by 7-11
c)
$5 Hot and Ready's at Little Caesars
d)
None of the above
22.
What always are the two axes on the Supply and Demand Graph?
a)
Price and Quality
b)
Price and Quantity
c)
Supply and Demand
d)
Equilibrium and Disequilibrium
23.
Which is NOT an example of in-kind benefits?
a)
Health Insurance
b)
Pension
c)
National Debt
d)
Vacation Days
24.
What is the correct formula for profit?
a)
Revenue minus Variable Costs
b)
Price plus Quantity Sold
c)
Total Revenue minus Total Costs
d)
Fixed Costs Plus Variable Costs
25.
Which type of capital involves knowledge or experience gained?
a)
Physical
b)
Human
c)
Das Capitol
d)
Labor
100 %
