WorksheetsConsumer Economic Systems: Key Concepts, Demand, and Supply
Total questions: 26
Worksheet time: 43mins
Which term best describes the study of the production, distribution, and consumption of goods and services?
Economics
Consumer
Elasticity
Efficiency
In consumer economics, what is a consumer?
A producer of physical products
Someone who purchases and uses goods and services
A government regulator
A seller of only services
Which statement best defines services?
Produced physical products
Actions performed by a user
Goods used in conjunction with other goods
Items whose demand decreases when income increases
Elasticity refers to which of the following?
A schedule of quantities supplied at several different prices
Fluctuation in demand of a product in relation to pricing
The total number of consumers in a market
The production of people’s wants in quantities wanted
Price elasticity is defined as the measure of the general _______ of quantity to change in price.
efficiency
responsiveness
profitability
scarcity
According to the law of demand, what happens when the price of a good falls, all else equal?
Quantity demanded decreases
Quantity demanded increases
Quantity supplied decreases
Quantity supplied stays the same
Which factor is NOT listed as one of the five factors changing demand?
Change in the number of people in the market
Expectations of the future
Change in efficiency or technology
Change in the price of a substitute or complementary product
Normal goods are characterized by which relationship with income?
Demand increases as income increases; elasticity is positive
Demand decreases as income increases; elasticity is negative
Demand does not change in relation to price
Demand falls sharply when price rises
Which description matches inferior goods?
Goods whose demand increases with an increase in income
Goods whose demand decreases when income increases
Goods and services with higher elasticity than normal goods
Goods used in conjunction with other goods
What is a substitute good?
A good used in conjunction with other goods
A good which can be used in place of another
A good whose demand will not change in relation to price
A good with negative income elasticity
The law of supply states that as the price of any good rises, the quantity supplied will _______.
decrease
increase
stay constant
become perfectly elastic
Which factor is listed as changing supply?
Change in taste or preferences
Change in the number of producers in the market
Expectations of the future
Change in the price of a substitute
Which everyday example best illustrates opportunity cost as described?
Buying a soda and a candy together
Saving money in a bank account
Buying candy instead of a soda at lunch, where the opportunity cost of the candy is a soda
Comparing two brands with the same price
Which statement best describes decision-making in the context of opportunity cost?
Every decision is independent of alternatives
Every decision is a process of choosing between two or more options and agreeing to give up what another option offers
Decisions are only relevant for large purchases
Decisions do not involve sacrifice
A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?
The supply will probably go up
The supply will probably go down
Which statement reflects the inverse relationship between quantity demanded and price?
As the price goes up, quantity demanded goes up.
As the price goes down, quantity demanded goes up.
As the supply goes up, the price goes up.
As the supply goes up, the demand goes up.
If the Price of a # 1 at Whataburger cost $17.10 and the Quantity Demanded is LOW what will happen to the Quantity Demanded at the price $12.54?
It will not change
It will decrease
It will increase
It will stay the same
The demand schedule for sodas shows that -
as price increases the demand decreases
as price increases the demand increases
as price increase the supply decreases
sodas are good
If the Price for movie tickets are $20.76 the Quantity Demanded is LOW if the price decreases to $12.43 what will happen to the Quantity Demanded?
It will decrease
It will increase
Stay the same
No change at all
If the Price of a Panthère de Cartier purse is at $100 and the Quantity Demanded is HIGH (cause steal) but then changes to $3,000 what happens to the Quantity Demanded?
It will not change
It will increase
It will decrease
It will stay the same
Which of these is an example of a shortage?
Farmers produce more corn that consumers want or need.
Grocery stores have enough bottled water to meet demand.
Overfishing makes it difficult to catch a popular type of fish.
A builder has the right amount of lumber to construct a house.
amount of product available for sale?
Supply
Demand
Surplus
Deficit
The price of jerseys for a NFL team soars after the team wins the Super Bowl. What will happen to the quantity supplied by manufacturers?
Quantity supplied will increase.
Quantity supplied will go down.
