Unit 2 - Economics Practice Quiz

If a price change causes a relatively larger change in quantity demanded, the demand is ______.

• Elastic

• Inelastic

• Marginal

• Exponential

A __________ is a product used in conjunction with another product.

• Complement

• Substitute

• Component

• Buddy

Demand can change in 2 ways - one way is change in _______ demanded.

• Color of Product

• Price of Product

• Quantity

• Capital

The _____ refers to the inverse relationship between price and quantity demanded.

• Marginal Utility

• Microeconomics

• Supply Curve

• Law of Demand

On a Supply Curve, an increase in price will cause quantity supplied to _________.

• Decrease

• Stay the same

• Increase

• Become zero

______ describes how a change in quantity supplied responds to a change in price.

• Supply Elasticity

• Product Elasticity

• Diminishing Returns

• Production Function

Which of the following is a cause for a change in supply?

• Cost of inputs

• Productivity

• Taxes & Subsidies

• All of the above

The Theory of _______ deals with the relationship between the factors of production and the output of goods and services

• Production

• Supply

• Cost

• Demand

_________ is an advantage of using a pricing system to allocate resources.

• Familiarity

• Flexibility

• No cost of administration

• All of the above

A shortage occurs when quantity demanded is _________ the quantity supplied.

• Less than

• Greater than

• Equal to

• Twice as large as