Worksheetsutility
Total questions: 18
Worksheet time: 11mins
Name
Class
Date
1.
Market equilibrium occurs when:
a)
a) Demand is greater than supply
b)
b) Supply is greater than demand
c)
c) Quantity demanded equals quantity supplied
d)
d) Prices rise continuously
2.
If the price of a product is set below the equilibrium price, what happens?
a)
a) A surplus occurs
b)
b) A shortage occurs
c)
c) Demand decreases
d)
d) Supply increases
3.
What happens when there is a surplus in a market?
a)
a) Demand is higher than supply
b)
b) Supply is higher than demand
c)
c) Prices increase
d)
d) Consumers buy more goods
4.
Marginal utility is best defined as:
a)
a) The total satisfaction from consuming a product
b)
b) The additional satisfaction from consuming one more unit of a good
c)
c) The decrease in price over time
d)
d) The consumer’s willingness to buy any product
5.
The Law of Diminishing Marginal Utility states that:
a)
a) As a person consumes more of a good, total utility decreases
b)
b) Total utility remains constant with increased consumption
c)
c) Each additional unit of a good consumed provides less additional satisfaction
d)
d) Consumers will stop purchasing goods when price increases
6.
What is consumer surplus?
a)
a) The amount consumers save when they buy at a lower price than they are willing to pay
b)
b) The total cost paid by the consumer
c)
c) The difference between supply and demand
d)
d) The total revenue earned by businesses
7.
If consumer income increases, how does this affect demand for a normal good?
a)
a) Demand decreases
b)
b) Demand increases
c)
c) Demand remains unchanged
d)
d) Price automatically decreases
8.
Which of the following shifts the demand curve to the right?
a)
a) Increase in consumer income
b)
b) Decrease in the price of the good
c)
c) Increase in the price of complementary goods
d)
d) Decrease in population
9.
If the price of a product is above the equilibrium price, a shortage occurs.
a)
True
b)
False
10.
Equilibrium price is the price at which quantity supplied equals quantity demanded.
a)
True
b)
False
11.
Diminishing marginal utility means that as you consume more of a product, your satisfaction keeps increasing.
a)
True
b)
False
12.
Market equilibrium changes when there is a shift in either demand or supply.
a)
True
b)
False
13.
Consumer choice is influenced by price, income, and personal preferences.
a)
True
b)
False
14.
A rise in the price of a substitute good decreases demand for the original good.
a)
True
b)
False
15.
When demand increases and supply remains the same, the equilibrium price will (a) .
16.
The difference between the highest price a consumer is willing to pay and the actual price paid is called (a) .
17.
When the price of a product increases, the quantity demanded usually (a) .
18.
8 The additional satisfaction gained from consuming one extra unit of a good is called (a) .
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