Economics Essentials: Supply, Demand, and Budgeting Quiz

What happens to the price of a toy if the demand for it increases but the supply remains the same?

• The price decreases.

• The price increases.

• The price stays the same.

• There is not enough information to decide.

If a farmer produces more apples than people want to buy, what is likely to happen to the price of apples?

• The price will increase.

• The price will decrease.

• The price will stay the same.

• The apples will become priceless.

Why is budgeting important?

• It helps you spend more money.

• It helps you save money for future needs.

• It makes everything more expensive.

• It is not important.

What does it mean if a product is in high demand?

• Nobody wants to buy it.

• Only a few people want to buy it.

• A lot of people want to buy it.

• It is free.

If the supply of a product decreases, what happens to the price, assuming demand stays the same?

• The price decreases.

• The price increases.

• The price stays the same.

• The product becomes illegal.

What is a budget?

• A plan for making and spending money.

• A plan for spending as much money as possible.

• A plan for saving all your money and never spending it.

• A new type of currency.

If a new video game is very popular and hard to find in stores, what is likely true about its supply and demand?

• Supply is high, and demand is low.

• Supply is low, and demand is high.

• Both supply and demand are high.

• Both supply and demand are low.

What should you do if you are budgeting and notice you are spending too much money on entertainment?

• Increase your entertainment budget.

• Decrease your entertainment budget.

• Stop budgeting.

• Borrow money to cover the extra expenses.

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When a store has a sale, what happens to the demand for the items on sale, assuming the quality of the items does not change?

• Demand decreases.

• Demand increases.

• Demand stays the same.

• Demand disappears.

Why might a company decide to increase the supply of their product?

• To decrease demand.

• To increase demand.

• To meet an increase in demand.

• To make the product more expensive.