Economics 101 factors of production supply and demand

What does the term 'shortage' mean?

• Supply is greater than demand

• Consumer demand is greater than supply

• Supply equals demand

• None of the above.

Fill in the blank: A surplus occurs when supply is ______ than demand.

• less

• equal

• greater

Which of the following is true when there is a surplus?

• A) Prices increase

• B) Prices decrease

• C) Prices remain the same

• D) Prices fluctuate.

What is the effect on prices when there is a shortage?

• Prices increase

• Prices decrease

• Prices remain the same

• Prices fluctuate.

What are the resources used to make goods and services called?

• Factors of production

• Economic inputs

• Natural resources

• Financial assets

Which of the following is an example of Land as a factor of production?

• Machinery

• Factory workers

• Oil fields

• Software

Fill in the blank: The machinery used in production is an example of ______.

• A) Land

• B) Labor

• C) Capital

An entrepreneur is a person who combines resources to create ______.

• Money

• Goods and services

• Investments

• Technology

Fill in the blank: The point where the supply and demand curves meet is known as the ______.

• A) Peak

• B) Equilibrium

• C) Base

• D) Apex

What does the line labeled 'D' in the oil price equilibrium diagram represent?

• Supply

• Demand

• Price

• Quantity