Question 1

Which would be a likely cause of an increase in the price of pizza?

Accepted Answer

a health report showing eating pizza reduces stress

Answer

a decrease in the price of hamburgers, a substitute food

Answer

a decreased interest in take-out and fast-food dining

Answer

a decrease in the price of cheese, a complement

Question 2

Which best describes the relationship b/w price & quantity demanded shown by the demand curve?

Accepted Answer

there's an inverse relationship bw price & quantity demanded

Answer

as a product's price rises, consumers buy less other goods

Answer

as the product's price falls, consumers buy less of the good

Answer

theres an indirect relationship between price & quantity demanded

Question 3

Which statement best explains the movement from S1 to S2 shown on this graph?

Accepted Answer

technological improvements in production

Answer

higher costs for natural resources

Answer

an increase in workers’ salaries

Answer

a decline in the production of a substitute good

Question 4

What does the point of intersection shown on this graph represent?

Accepted Answer

equilibrium price

Answer

opportunity cost

Answer

marginal production

Answer

elasticity

Question 5

Which statement best describes the relationship between supply and demand?

Accepted Answer

A product with high demand & low supply leads to an increase in price

Answer

A product with high demand & high supply leads to a decrease in price

Answer

A product with low demand & low supply leads to an increase in price

Answer

A product with low demand & high supply leads to no change in price

Question 6

Which term replaces this question mark?

Accepted Answer

supply

Answer

marginal benefit

Answer

consumption

Answer

fixed costs

Question 7

The amount of a good/service that consumers are willing, able, and want to buy at a particular price:

Accepted Answer

quantity demanded.

Answer

final product.

Answer

marginal utility.

Answer

personal savings.

Question 8

When the quantity demanded for a product is less than the quantity supplied, the market

Accepted Answer

has a surplus of products

Answer

is in equilibrium

Answer

price is too low

Answer

has a shortage of products

Question 9

Which economic change best explains a reduction in coffee prices?

Accepted Answer

improved technology for commercial production

Answer

increased need for subsistence farming

Answer

rapid wage increases for factory workers

Answer

adoption of tariffs on imported goods

Question 10

Which statement best supports the shift demonstrated in this graph?

Accepted Answer

An increase in price of sugar reduces supply of ice cream

Answer

A decrease in frozen yogurt price increases ice cream supply

Answer

A decrease dairy products cost increases supply of ice cream

Answer

Increase in frozen yogurt price decreases ice cream supply

Question 11

What will be the state of the market if peanuts are sold for $5 per pound?

Accepted Answer

There will be a 60,000-pound surplus.

Answer

There will be a 60,000-pound shortage.

Answer

There will be a 30,000-pound shortage

Answer

There will be a 30,000-pound surplus.

Related quizzes

Related quizzes