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PF 1-2 Quiz

Total questions: 10

Worksheet time: 30mins

Name
Class
Date
1.

What does the term "Economy" refer to?

a)

All activities related to making and distributing goods and services in a country

b)

Only the production of goods

c)

Only the distribution of services

d)

Supply and demand

2.

Which concept is our market economy based on?

a)

Supply and demand

b)

Climate and weather

c)

Population growth

d)

Technology advancement

3.

What is the definition of "Supply"?

a)

Goods/services producers are willing to produce or provide

b)

The amount consumers want to buy

c)

The total population of a country

d)

The number of jobs available

4.

What happens to supply when demand increases?

a)

Supply increases

b)

Supply decreases

c)

Supply stays the same

d)

Supply disappears

5.

What happens to supply when demand decreases?

a)

Supply decreases

b)

Supply increases

c)

Supply remains unchanged

d)

Supply doubles

6.

What is the definition of "Demand"?

a)

Our willingness/ability to buy goods and services

b)

The amount producers want to sell

c)

The number of factories in a country

d)

The total exports of a nation

7.

What happens to cost when demand increases?

a)

Cost increases

b)

Cost decreases

c)

Cost stays the same

d)

Cost is eliminated

8.

Which of the following best describes the business cycle?

a)

A constantly repeating cycle of economic changes

b)

A one-time event in the economy

c)

A cycle that only happens every century

d)

A cycle that only affects agriculture

9.

What follows the low point in the business cycle?

a)

Recovery/growth

b)

Recession

c)

Decline

d)

Stagnation

10.

Which of the following is NOT a stage in the business cycle as described in the organizer?

a)

Inflation

b)

Peak

c)

Recession

d)

Recovery/growth