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

10 Questions | Total Attempts: 229

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Economics Quizzes & Trivia

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