Economy Worksheets With Answer Key
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16Practice Questions Week 2 Day 1
Multiple Choice
____
1. When individuals come together to buy and sell goods and services, they form a(n)
a.
economy
b.
market
c.
production possibilities frontier
d.
supply curve
e.
demand curve
____
2. In a perfectly competitive market,
a.
there can be few or many buyers and sellers
b.
the price is driven upward when suppliers hold back on goods and services
c.
each participant is too small to affect the market price
d.
government intervention is needed to ensure that prices are fair for consumers
e.
resources are allocated by a central authority
____
3. In analyzing the market for a particular good, the most appropriate size of the market to consider
a.
is the global market
b.
is a local market
c.
is a national market
d.
is a state-wide market
e.
depends on the purpose of the analysis
____
4. In a market system, prices are determined by
a.
corporate executives
b.
government bureaucrats
c.
supply and demand
d.
total market demand
e.
production costs
____
5. When households and businesses interact in resource markets money
a.
is not exchanged
b.
is flowing toward businesses
c.
is flowing toward households
d.
is not used at all
e.
is flowing to both businesses and households
____
6. The amount of a good or service that buyers would be willing and able to purchase at a specific price is
known as
a.
quantity demanded
b.
demand
c.
supply
d.
quantity supplied
e.
opportunity cost
____
7. Because price and quantity demanded are inversely related,
a.
the demand curve is usually upward-sloping
b.
buyers purchase more of the good as the price rises
c.
the supply curve must be rising
d.
price and quantity supplied must be positively related
e.
the demand curve is usually downward-sloping
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