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- 1. Multiple Choice
Which diagram shows the effect of a decrease in incomes upon the market for big screen TVs? (Hint: shift left is a decrease, shift right is an increase; income does NOT affect supply)
Graph A: demand shifts right
Graph B: demand shifts left
Graph C: supply shifts left
Graph D: supply shifts right
- 2. Multiple Choice
Before Thanksgiving, the price of turkeys increase and the demand also increases. Is this a violation of the law of demand?
No, according to the demand curve, a price increase results in a demand increase.
Yes, according to the demand curve, a price increase results in a demand decrease.
No, a non-price factor is increasing the demand and causing the demand curve to shift right.
Yes, a non-price factor is increasing the demand and causing the demand curve to shift left.
- 3. Multiple Choice
The law of supply states that, all other factors being equal, as the product price _________________ the quantity of the product provided by sellers decreases.
stays the same
increases
decreases
- 4. Multiple Choice
A new substitute enters the market causing a shift in the demand curve in the graph. What is the new equilibrium point after the substitute enters the market? (Hint: Determine which direction a substitute shifts the demand curve and use that direction to pick the resulting equilibrium point.)
$10 and 1,500
$7.50 and 1,250
$10 and 1,250
$7.50 and 1,500
- 5. Multiple Choice
Which economic field of study focuses on larger-scale topics such as gross domestic product and national unemployment?
Microeconomics
Macroeconomics
- 6. Multiple Choice
A new manufacturing technology makes it easier to make the product and causes a shift in the supply curve. What is the new equilibrium point after implementing the new technology? (Hint: Determine which direction a easier production shifts the supply curve and use that direction to pick the resulting equilibrium point.)
$6 and 20,000
$4 and 30,000
$6 and 30,000
$4 and 20,000
- 7. Multiple Choice
Supply and demand curves are used in which branch of economics?
Macroeconomics
Microeconomics
- 8. Multiple Choice
The Law of Demand states that, all other factors being equal, as the product price increases, the quantity of the product sought by buyers __________.
decreases
stays the same
increases
- 9. Multiple Choice
Which direction does the demand curve slope?
up
down
no slope
- 10. Multiple Choice
Refer to the graph. Which area indicates a shortage?
A
B
C
D
- 11. Multiple Choice
How does the following situation SHIFT the demand curve for tea? There is a widely publicized study explaining the health benefits of tea.
It shifts the demand curve left
It shifts the demand curve right
It does not shift the demand curve
- 12. Multiple Choice
Which of the diagrams shows the effect of a government subsidy in the production of solar panels?
Graph A
Graph B
Graph C
Graph D
- 13. Multiple Choice
How does the following situation SHIFT the demand curve for specific brand of house paint? The manufacturer increases prices to maximize profit.
It shifts the curve left
It shifts the curve right
It does not shift the curve
- 14. Multiple Choice
Which direction does the supply curve slope?
Up
Down
No slope
- 15. Multiple Choice
Which graph has the proper labels on the axis for a demand curve?
Graph A
Graph B
Graph C
Graph D
- 16. Multiple Choice
How does the following situation SHIFT the supply curve for a product? The main manufacturer of the product signs a new labor contract that increases worker salaries and benefits.
It shifts the curve left
It shifts the curve right
It does not shift the curve
- 17. Multiple Choice
Refer to the diagram. A price of $15 in this market will result in:
Equilibrium
A shortage of 500 units
A surplus of 500 units
A surplus of 1,000 units
A shortage of 1,000 units
- 18. Multiple Choice
How does the following situation SHIFT the demand curve for an ice cream shop in a small town? A cup cake shop opens down the block.
Shifts the curve left
Shift the curve right
Does not shift the curve
- 19. Multiple Choice
Refer to the graph. The equilibrium price and quantity for this product will be:
$60 and 2,600
$100 and 1,000
$30 and 1,000
$100 and 5.000
$30 and 5,000
- 20. Multiple Choice
Refer to the graph. Which area indicates a surplus?
A
B
C
D
- 21. Multiple Choice
The two broad fields of study in economics are ________________ and ________________.
supply and demand
microeconomics and macroeconomics
money and prices
monopoly and oligopoly
- 22. Multiple Choice
Which of the following does NOT describe macroeconomics?
focuses on the large-scale economy whether it's regional, national or global
studies national income, unemployment and production
focuses on the smaller or more specific aspects of the economy
is concerned with how the entire economy may grown and shrink
- 23. Multiple Choice
Which of the following does NOT describe microeconomics?
focuses on the large-scale economy whether it's regional, national or global
studies how the economic choices of individuals, households and businesses affect the allocation of resources and prices in an economy
focuses on the smaller or more specific aspects of the economy
- 24. Multiple Choice
The supply curve always slopes upward.
True
False
- 25. Multiple Choice
The demand curve always slopes ____________.
upward
downward
- 26. Multiple Choice
If a super market increases the price of hamburger meat, what happens to the demand for hamburger meat?
It increases
It decreases
- 27. Multiple Choice
The non-price factor that does NOT affect supply is?
effects of technology
competition
cost of production
income
- 28. Multiple Choice
The non-price factor that does NOT affect demand is?
Income
Cost of Production
Preferences
Availability of substitutes
- 29. Multiple Choice
When the demand for a product is higher than the supply, this causes what?
a surplus
a shortage
equilibrium
- 30. Multiple Choice
The point where supply and demand are balanced is?
shortage
surplus
equilibrium
- 31. Multiple Choice
When the supply for a product is higher than the demand this causes what?
a surplus
equilibrium
a shortage
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