Economics Quiz

What is the opposite of demand in economic terms?

• Profit

• Supply

• Incentive

• Price

According to the law of supply, what happens when the price of a good rises?

• Producers make less of the good

• Producers make more of the good

• Demand decreases

• Demand increases

What is the main reason a producer would want to make more of something when prices rise?

• Demand

• Profit

• Competition

• Loss

What happens to the incentive to produce a good if its price falls?

• It increases

• It stays the same

• It decreases

• It doubles

What happens to the opportunity to make more profit as prices rise?

• It decreases

• It stays the same

• It increases

• It disappears

What is the effect on production when there is less incentive to make more of a good?

• Production increases

• Production decreases

• Production stays the same

• Production doubles

What happens to a farmer's production if the price of tomatoes increases to $10 a basket?

• The farmer decreases production.

• The farmer maintains the same production level.

• The farmer increases production.

• The farmer stops production.

What is the incentive for a farmer to produce more tomatoes when the price increases?

• Less profit

• More profit

• No profit

• Constant profit

What is the effect of a price decrease on a producer's profit?

• More profit

• Less profit

• No change in profit

• Increased profit margin

What is the farmer's response to a lack of incentive to grow tomatoes?

• Increase production

• Decrease production

• Maintain production

• Stop production entirely