Economics Quiz: Production, Distribution, And Consumption Of Goods And Services!

10 Questions | Total Attempts: 255

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Economics Quiz: Production, Distribution, And Consumption Of Goods And Services!

Chapter one seemed to go well enough for you, but as we continue to delve deeper into our ongoing studies of economics, you’ll see things start to get a little more complex. Keep at it, however, as this social science will go a long way towards providing you with a sense of understanding when it comes to how we analyze the production, distribution, and consumption of goods and services.


Questions and Answers
  • 1. 
    The supply and demand model examines how prices and quantities are determined:
    • A. 

      In markets

    • B. 

      By governments

    • C. 

      By churches

    • D. 

      By monopolists

  • 2. 
    ON the Heritage Foundation's scale of :economic freedom," the least :free" country would be the one whose economic system was purely;
    • A. 

      Capitalist

    • B. 

      Socialist

    • C. 

      Unitarian

    • D. 

      Communist

  • 3. 
    When an economics student draws a supply and demand diagram to model an increase in the income, she is assuming this change happens:
    • A. 

      Semper fidelis

    • B. 

      Ceteris paribus

    • C. 

      Ipso facto

    • D. 

      De facto

  • 4. 
    If the supply and demand curves cross at the price of $2, at any price above that there will be
    • A. 

      An equilibrium

    • B. 

      A surplus

    • C. 

      A shortage

    • D. 

      A crisis

  • 5. 
    If the supply and demand curves cross at a quantity of 100, then the price necessary to get firms to sell more than that will be to ___ equilibrium.
    • A. 

      Above

    • B. 

      At

    • C. 

      Below

    • D. 

      Within 10% either way of

  • 6. 
    An increase in which of the following determinants of demand will have an ambiguous (uncertain) effect on price?
    • A. 

      Taste

    • B. 

      Price of a complement

    • C. 

      Income

    • D. 

      Price of substitute

  • 7. 
    Which of the following will impact both supply and demand?
    • A. 

      A change in price

    • B. 

      A change in quantity

    • C. 

      Change in expected future price

    • D. 

      Change in income

  • 8. 
    An increase in the income of consumers will cause the
    • A. 

      Supply of all good to rise

    • B. 

      Demand for all goods to rise

    • C. 

      Supply for all good to fall

    • D. 

      The demand for some good to rise and for other to fall

  • 9. 
    Without an increase in price, an increase in demand will lead to
    • A. 

      A shortage

    • B. 

      A surplus

    • C. 

      Socialism

    • D. 

      Equilibrium

  • 10. 
    The underlying reason for the upward-sloping nature of the supply curve is that
    • A. 

      The production of most goods comes with increasing marginal benefits

    • B. 

      The production of most good comes with increasing marginal costs

    • C. 

      The consumption of most goods comes with decreasing marginal utility

    • D. 

      The consumption of most goods comes with increasing marginal utility

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