Economics Quiz

What is the relationship between the quantity of apples that farmers are willing to sell and the price of apples?

• No relationship

• Direct relationship

• Inverse relationship

• Exponential relationship

What happens to the supply curve when a new technology reduces production costs?

• Shifts to the right

• Remains unchanged

• Shifts to the left

• Becomes steeper

What does the demand curve show?

• Relationship between quantity supplied and income

• Relationship between quantity demanded and price

• Relationship between quantity supplied and price

• Relationship between quantity demanded and income

What is the equilibrium price?

• Price set by the government

• Price determined by the highest bidder

• Price that maximizes profit

• Price that equates quantity supplied to quantity demanded

What does a surplus indicate in the market?

• Quantity supplied exceeds quantity demanded

• Quantity demanded exceeds quantity supplied

• Equilibrium is reached

• No effect on price

What is the price elasticity of demand?

• Percentage change in quantity demanded resulting from a 1-percent increase in price

• Percentage change in quantity demanded resulting from a 1-percent increase in income

• Percentage change in income resulting from a 1-percent increase in price

• Percentage change in price resulting from a 1-percent increase in quantity demanded

In the long run, how does the demand for durable goods differ from non-durable goods?

• Durable goods have lower income elasticity

• Non-durable goods have higher income elasticity

• Durable goods have higher income elasticity

• Non-durable goods have lower income elasticity

What happens to the price of copper when there is a 20-percent decline in demand?

• Price decreases by 20 percent

• Price remains unchanged

• Price increases by 20 percent

• Price decreases by 10.7 percent

What is the effect of price controls on the market?

• No impact on price

• Maintains equilibrium

• Creates a shortage

• Creates a surplus

What caused the sharp increase in oil prices in the world market?

• Technological advancements

• Political events and OPEC cartel

• Increase in supply

• Decrease in demand