Economics Quiz

What happens to the price of a product when demand exceeds supply?

• Price decreases

• Price increases

• Price remains the same

• Price fluctuates randomly

If the price of a substitute good increases, the demand for the original good will likely:

• Increase

• Decrease

• Stay the same

• Become perfectly elastic

Which of the following would cause a shift in the demand curve to the right?

• An increase in consumer income

• A decrease in the price of the good

• An improvement in technology

• A decrease in the price of a substitute good

What does a movement along the supply curve represent?

• A change in the quantity supplied

• A change in supply

• A shift in demand

• A change in consumer preferences

If there is an advancement in technology for producing smartphones, what will happen to the supply curve for smartphones?

• It will shift to the left

• It will shift to the right

• It will stay the same

• It will become vertical

Which of the following best describes equilibrium in the market?

• When quantity demanded exceeds quantity supplied

• When quantity supplied exceeds quantity demanded

• When quantity demanded equals quantity supplied

• When there is a government price control

A decrease in the price of a complementary good will most likely:

• Increase demand for the original good

• Decrease supply of the original good

• Have no effect on the original good

• Shift the supply curve of the original good to the left

In a free market, resources are allocated primarily by:

• The government

• Market prices

• A central planning board

• Random distribution

Which of the following is an example of opportunity cost?

• The money spent on a vacation

• The salary you give up to go back to school

• The taxes you pay on your income

• The profit made from selling a product

Opportunity cost is best defined as:

• The financial cost of a decision

• The time spent making a decision

• The next best alternative foregone when making a decision

• The marginal utility gained from a decision