Economics: Supply and Demand Quiz

What is the definition of economics?

• The study of how to use limited resources to fulfill unlimited needs and wants

• The study of how to fulfill unlimited needs and wants

• The study of how to limit resources to fulfill unlimited needs and wants

• The study of how to use unlimited resources to fulfill limited needs and wants

What is scarcity in economics?

• Having enough resources to produce all the things we want

• Not having enough resources to produce all the things we want

• Having unlimited resources to fulfill unlimited needs and wants

• Having limited resources to fulfill limited needs and wants

What is the law of demand in economics?

• If the price increases, the demand decreases

• If the price decreases, the demand decreases

• If the price decreases, the demand increases

• If the price increases, the demand increases

What is the law of supply in economics?

• If the price decreases, the supply increases

• If the price decreases, the supply decreases

• If the price increases, the supply decreases

• If the price increases, the supply increases

Where does equilibrium occur in supply and demand?

• Where the price is determined by an agreement between the buyer and seller

• Where buyers and sellers agree on a price

• Where the quantity supplied is less than the quantity demanded

• Where the quantity supplied is more than the quantity demanded

What is a surplus in economics?

• A situation where the price is determined by an agreement between the buyer and seller

• A situation where the quantity supplied is less than the quantity demanded

• A situation where the quantity supplied is more than the quantity demanded

• A situation where the demand and supply curves intersect

What is a shortage in economics?

• A situation where the demand and supply curves intersect

• A situation where the quantity supplied is less than the quantity demanded

• A situation where the quantity supplied is more than the quantity demanded

• A situation where the price is determined by an agreement between the buyer and seller

What is opportunity cost in economics?

• The cost of buying something

• The cost of giving up something when making a choice

• The cost of unlimited wants and needs

• The cost of limited resources

What is the law of demand based on?

• The demand curve and the supply curve

• The quantity demanded and the price

• The quantity supplied and the price

• The quantity demanded and the quantity supplied

What is the law of supply based on?

• The quantity supplied and the price

• The quantity demanded and the price

• The quantity demanded and the quantity supplied

• The demand curve and the supply curve