Economics

Question 1

1When there is excess demand in a market, the price tends to

Easy

A. stay the same B. rise C. fall D. become zero

Question 2

2A market where goods are bought and sold through the internet is

Easy

A. an online (electronic) market B. a black market C. a commodity exchange only D. a barter market

Question 3

3Hoarding of goods by traders leads to

Easy

A. artificial shortage and higher prices B. equilibrium C. lower prices D. more supply

Question 4

4A price ceiling below equilibrium leads to

Hard

A. equilibrium B. higher prices C. excess supply D. excess demand and possible rationing

Question 5

5A surplus occurs when

Easy

A. quantity supplied exceeds quantity demanded B. price equals equilibrium C. there are no sellers D. demand exceeds supply

Question 6

6The equilibrium price is where

Easy

A. demand is highest B. supply is zero C. quantity demanded equals quantity supplied D. the government sets it

Question 7

7A maximum price set by the government below equilibrium usually leads to

Easy

A. surpluses B. shortages and black markets C. lower demand D. higher supply

Question 8

8Demand is Qd = 100 − 2P and supply is Qs = 20 + 2P. What is the equilibrium price?

Medium

A. 10 B. 60 C. 20 D. 40

Question 9

9Demand is Qd = 100 − 2P and supply Qs = 20 + 2P. The equilibrium price is

Hard

A. 20 B. 60 C. 30 D. 40

Question 10

10Using Qd = 100 − 2P and Qs = 20 + 2P, the equilibrium quantity is

Hard

A. 60 B. 20 C. 40 D. 80