WorksheetsEcon-Ch. 6 Test Review-(Wayground)
Total questions: 45
Worksheet time: 23mins
Name
Class
Date
1.
A fruit stand would experience a surplus if it supplied 20 oranges...
a)
a. but consumers demanded 15
b)
b. but consumers demanded 25
c)
c. and consumers demanded 20
2.
When there is a shortage, producers raise prices in an attempt to...
a)
a. seperate the quantitiy supplied and demanded
b)
b. raise the quantity demanded
c)
c. equalize the quantity supplied and demanded
3.
Supply can be changed by...
a)
a. equilibrium
b)
b. input costs
c)
c. substitutes
d)
d. none of these
4.
On a demand and supply graph, an increase in demand causes the demand curve to...
a)
a. shift to the right
b)
b. shift to the left
c)
c. stay in the same position, but move along the curve
5.
Consumers would have an added incentive to buy if the...
a)
a. price for jeans sharply increased
b)
b. price for diamond jewlery sharply decreased
c)
c. supply of oranges remained consistant
6.
Lower prices generally...
a)
a. discourage producers from leaving a market
b)
b. motivate consumers to buy
c)
c. motivate producers to enter a market
7.
Companies engage in competitive pricing to...
a)
a. gain a bigger share of the market
b)
b. reduce their share of the market
8.
When consumers demand more goods and services at every price, equilibrium price will...
a)
a. stay the same
b)
b. rise
c)
c. fall
9.
On a market demand and supply graph, the point of market equilibrium happens...
a)
a. at the lowest point of the supply curve
b)
b. at the highest point on the demand curve
c)
c. at the point where the demand and supply curves intersect
10.
If a producer supplies 25 pizzas, market equilibrium is reached when consumers demand...
a)
a. 30 pizzas from this producer
b)
b. 20 pizzas from this producer
c)
c. 25 pizzas from this producer
11.
A coffee shop would experience a shortage if it supplied 30 muffins...
a)
a. but consumers demanded 35
b)
b. but consumers demanded 15
c)
c. and consumers demanded 30
12.
On a market demand and supply graph, the vertical axis shows...
a)
a. quantity
b)
b. prices
c)
c. equilibrium
d)
d. demand
13.
A system in which the government allocates goods and services using factors other than price is called...
a)
a. rationing
b)
b. a black market
c)
c. a price ceiling
14.
When producers supply more, equilibrium price will...
a)
a. rise
b)
b. fall
c)
c. stay the same
15.
A surplus of a particular good is often a signal for a consumer to...
a)
a. wait and buy that good later
b)
b. seek bargain prices for that good
c)
c. expect the prices of that good to rise
16.
Which of the following would cause equilibrium price to increase?
a)
a. a manufacturer supplies enough jeans to satisfy demand
b)
b. a typhoon sharply decreases the supply of bananas
c)
c. a farm expands, thereby increasing its supply of corn
17.
The demand curve is plotted by using a product's...
a)
a. production costs and quantities
b)
b. production costs and qualities
c)
c. prices and quantities
18.
At cost of 15 dollars per CD, Jake's Audio store supplies 50 CDs and 50 CDs are demanded by consumers. What does the 15 dollars per CD represent?
a)
a. price floor
b)
b. equilibrium price
c)
c. price ceiling
19.
Suppliers often reduce prices because they...
a)
a. want to decrease consumer demand
b)
b. have a surplus of products to sell
c)
c. have a shortage of products to sell
20.
On a market demand and supply graph, the horizontal axis shows...
a)
a. quantity
b)
b. prices
c)
c. demand
d)
d. equilibrium
21.
A surplus happens when...
a)
a. prices are too low, relative to consumer demand
b)
b. prices are too high relative to consumer demand
22.
The United States instituted rationing during...
a)
a. the Vietnam War
b)
b. the Persian Gulf War
c)
c. World War II
23.
The maximum amount that sellers charge for a good or service is called a...
a)
a. price floor
b)
b. price ceiling
c)
c. minimum wage
24.
If a government set a limit on the cost of baseball bats, this type of action would be called...
a)
a. setting a price ceiling
b)
b. setting a price floor
25.
A store would experience equilibrium if it supplied 25 DVD's...
a)
a. but consumers demanded 30
b)
b. but consumers demand 20
c)
c. and consumers demanded 25
26.
A state of disequilibrium happens when an imbalance exists between...
a)
a. quality supplied and quality demanded
b)
b. quantity expected and quantity sold
c)
c. quantity supplied and quantity demanded
27.
A shortage of a particular good is often a signal for a producer to...
a)
a. raise the prices of that good
b)
b. lower the prices of that good
c)
c. shift production to another good
28.
Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers...
a)
a. is higher for the product demanded
b)
b. are equal
c)
c. are different
29.
A market demand and supply schedule lists the quantity supplied and demanded, and the...
a)
a. shortages
b)
b. prices
c)
c. surplus
30.
Why did Michael Dell sell computers for a lower price than his competitors?
a)
a. to make a quick profit and then sell his business
b)
b. to gain a larger share of the market
c)
c. to show the inferior quality of his competitors' computers
31.
The price system helps to allocate resources efficiently because prices will adjust until...
a)
a. an equal number of goods and services are sold
b)
b. the minumum number of goods and services are sold
c)
c. the maximum number of goods and services are sold
32.
Other companies found competing with Dell computers difficult because Dell's...
a)
a. their supply was too large
b)
b. prices were much lower
c)
c. quality control was poor
33.
In the price system of a market economy, prices are determined by...
a)
a. political forces
b)
b. market forces
c)
c. central planning
34.
Which of the following is an example of a price floor?
a)
a. setting a minimum wage
b)
b. establishing rent control on apartments
c)
c. limiting ticket prices to Pearl Jam
35.
Demand can be changed by...
a)
a. consumer taste
b)
b. producer expectation
c)
c. the number of producers
36.
What would be the likely result if a company increased production of toy pigs to meet increasing demand, but then demand dropped sharply and suddenly?
a)
a. you would have a product shortage
b)
b. price ceiling was met
c)
c. you would have a product surplus
37.
Imagine that a company supplies 20 shirts, and 20 shirts are demanded by consumers. Which of the following has the company achieved?
a)
a. market equilibrium
b)
b. market shortage
c)
c. market surplus
38.
If a shirt manufacturer has a surplus of two shirts when they're priced at $14 each and a shortage of two shirts at $10 each, market equilibrium is likely to be at...
a)
a. $13 per shirt
b)
b. $11 per shirt
c)
c. $12 per shirt
39.
Equilibrium price would decrease if a...
a)
a. hurricane destroyed the supply of coffee
b)
b. type of shoe went out of style, decreasing demand
c)
c. type of bracelet became became popular, increasing demand
40.
Higher prices generally...
a)
a. motivate consumers to buy
b)
b. motivate producers to enter a market
c)
c. discourage producers from entering a market
41.
A gas station owner decides to charge less for his gasoline than the gas station across the street. Doing this is an example of...
a)
a. setting a price ceiling
b)
b. competitive pricing
c)
c. setting a price floor
d)
d. rationing a product
42.
A producer would have an added incentive to enter a market if the...
a)
a. price for tennis shoes sharply increased
b)
b. supply of cell phones satisfied consumer demand
c)
c. supply for apples increased, causing a surplus
43.
Rationing would most likely result from a...
a)
a. nation getting involved in a war
b)
b. manufacturer increasing its supply
c)
c. business trying to reduce a surplus
44.
A baseball team limiting the amount charged for buying a ticket is...
a)
a. setting a price floor
b)
b. setting a price ceiling
45.
Rent control has become less common because it...
a)
a. no incentive to increase the supply, which causes housing shortages
b)
b. higher prices caused housing surpluses
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