Unit 2 Test- Supply, Demand And Competition

48 Questions | Total Attempts: 251

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Supply And Demand Quizzes & Trivia

Questions and Answers
  • 1. 
    Demand can only occur when a buyer is _________
    • A. 

      Limited by time

    • B. 

      Willing and able to buy

    • C. 

      Buying substitutes

    • D. 

      Determined to sell

  • 2. 
    If an item has a substitute it is defined as:
    • A. 

      Complementary

    • B. 

      Elastic

    • C. 

      Inelastic

    • D. 

      Utility

  • 3. 
    According to the Law of Supply, if price increases, supply:
    • A. 

      Is not determined

    • B. 

      Is elastic

    • C. 

      Increases

    • D. 

      Decreases

  • 4. 
    Competition has what effect on price?
    • A. 

      Increases price

    • B. 

      Has no effect on price

    • C. 

      Keeps price low

    • D. 

      Destroys the market

  • 5. 
    Which of the following is NOT a factor of demand?
    • A. 

      Increase in customers

    • B. 

      Income goes up

    • C. 

      Substitution

    • D. 

      Increase in capital goods

  • 6. 
    Following are factors of capitalism except:
    • A. 

      Markets

    • B. 

      Competition

    • C. 

      Economic Freedom

    • D. 

      State owned factories

  • 7. 
    The most competitive type of competition is _________
    • A. 

      Perfect Competition

    • B. 

      Monopoly

    • C. 

      Monopolistic Competition

    • D. 

      Oligopoly

  • 8. 
    If two products are commonly used together, they are considered:
    • A. 

      Elastic

    • B. 

      Complements

    • C. 

      Substitutes

    • D. 

      Inelastic

  • 9. 
    What economics concept explains how the recent rise in gas prices has not affected demand:
    • A. 

      Inelasticity

    • B. 

      Diminishing marginal utility

    • C. 

      Oligopoly

    • D. 

      Equilibrium

  • 10. 
    In general, as more suppliers enter the market:
    • A. 

      Demand drops

    • B. 

      Supply rises

    • C. 

      Demand rises

    • D. 

      Supply drops

  • 11. 
    If quantity supplied is greater than quantity demanded there will be a:
    • A. 

      Surplus

    • B. 

      Complement

    • C. 

      Shortage

    • D. 

      Substitute

  • 12. 
    According to the Law of Demand; if prices increase, demand 
    • A. 

      Increases

    • B. 

      Decreases

    • C. 

      Remains the same

    • D. 

      Goes crazy

  • 13. 
    The government agency regulates advertising is:
    • A. 

      FDA

    • B. 

      EPA

    • C. 

      CPSC

    • D. 

      FTC

  • 14. 
    A hurricane hit the gulf coast of closing oil refineries. What will happen to the price of oil?
    • A. 

      It will decrease

    • B. 

      It will increase

    • C. 

      It will remain the same

    • D. 

      It will go crazy

  • 15. 
    Which of the following is characteristics of an elastic product?
    • A. 

      Consumers have no option

    • B. 

      Many competing brands

    • C. 

      Occurs in a monopoly

    • D. 

      Dominated by one seller

  • 16. 
    Peanut Butter and Jelly are used together. What will happen to the demand for jelly if the price of peanut butter decreases?
    • A. 

      Increases

    • B. 

      Decreases

    • C. 

      Stays the same

    • D. 

      Goes crazy

  • 17. 
    What would it be called if Cold Stone Creamery and Baskin Robbins joined together?
    • A. 

      Trust

    • B. 

      Merger

    • C. 

      Monopoly

    • D. 

      A big milky mess

  • 18. 
    A drought will cause the supply curve of water hungry vegetable to shift which way?
    • A. 

      Left

    • B. 

      No shift occurs

    • C. 

      Right

    • D. 

      Down

  • 19. 
    What determines the price in the U.S?
    • A. 

      Utility

    • B. 

      Supply and Demand

    • C. 

      Consumers

    • D. 

      Demand

  • 20. 
    Anti-trust laws are all of the following except:
    • A. 

      Controls monopolies

    • B. 

      Is a role of the government

    • C. 

      Promotes competition

    • D. 

      Combines companies

  • 21. 
    All of the following are private goods except:
    • A. 

      Paper

    • B. 

      Street lights

    • C. 

      Rubber

    • D. 

      Cars

  • 22. 
    An unintended side effect is also known as:
    • A. 

      Utility

    • B. 

      Merger

    • C. 

      Externality

    • D. 

      Monopoly

  • 23. 
    Individuals accepting the consequence of their actions is also known as:
    • A. 

      Economic Freedom

    • B. 

      Profit Motive

    • C. 

      Property Rights

    • D. 

      Competition

  • 24. 
    Adam Smith wrote about:
    • A. 

      Wealthy people

    • B. 

      Consumer safety

    • C. 

      Economic Principles

    • D. 

      Socialism

  • 25. 
    OPEC is an example of _______.
    • A. 

      Monopolistic Competition

    • B. 

      Cartel

    • C. 

      Oligopoly

    • D. 

      Perfect Competition

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