Question 1

Which of the following is correct with respect to the issue of supply and demand?
A demand curve shows that consumers usually demand products of higher quality.
A supply curve shows that businesses will supply more units of a product, but will lower the level of product quality.
It is difficult to achieve an equilibrium price.
When the quantity demanded exceeds the amount supplied, businesses shut down.
None of the statements are correct.

Accepted Answer

The answer of Which of the following is correct with...

Question 2

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years. The firm decides to expand its battery production. This illustrates
the law of supply.
the law of market price.
the law of equilibrium.
the law of demand.
the law of supply and demand.

Accepted Answer

The answer of A producer of automobile batteries notes that...

Question 3

The market research department of BSX Corp. estimated that 5000 CDs would be purchased at a price of $8.00 each. As it turned out, the demand was 6000. The company is in a(n) ________ condition.
shortage
growth
inflation
surplus
depression

Accepted Answer

The answer of The market research department of BSX Corp....

Question 4

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service which customers will purchase is known as the
variable price curve.
equilibrium curve.
demand curve.
supply curve.
balance curve.

Accepted Answer

The answer of The points on a curve showing the...

Question 5

If the market for chocolate was at the equilibrium point and suddenly half of the chocolate in the world disappeared, what would be the immediate effect?
The price would increase due to a shortage.
The price would decrease due to market equilibrium.
The price would increase due to a surplus.
The price would decrease due to a surplus.
There would be no change in either price or demand.

Accepted Answer

The answer of If the market for chocolate was at...

Question 6

If the equilibrium point of 5-for-1 Pizza is 2000 pizzas per week and $10.00 per pizza, and the owner decides to make 2200 pizzas and sell them at the same price, what is the likely outcome?
The business will have less expenses and also have greater profit.
The business will have a shortage.
The business will make more profit.
The business will have a surplus.
The business will have less expenses but no more profit.

Accepted Answer

The answer of If the equilibrium point of 5-for-1 Pizza...

Question 7

The price at which the quantity of a product willing to be purchased by customers and the quantity of product willing to be made by a producer are equal is known as
the break-even price.
the oligopoly price.
the balanced price
the elastic price.
either the market price or the equilibrium price.

Accepted Answer

The answer of The price at which the quantity of...

Question 8

The point at which the quantity of a product or service demanded is the same as the quantity supplied is called
the surplus point.
the equilibrium point.
the supply point.
the profit point.
the demand point.

Accepted Answer

The answer of The point at which the quantity of...

Question 9

Tom, a real estate agent, wants to convince a potential customer where the price should be set to sell their home. Tom could use a
variable cost curve.
demand and supply schedule.
supply curve.
demand curve.
property analysis.

Accepted Answer

The answer of Tom, a real estate agent, wants to...

Question 10

In economic terms, a "market" is
available in capitalist nations, but not in communist nations.
located where buyers can most easily access it.
the physical location (for example, a grocery store) where exchanges take place between buyers and sellers.
an exchange process between sellers and buyers.
all of these.

Accepted Answer

The answer of In economic terms, a "market" is
available in...

Question 11

A new sales tax has the effect of shifting the supply curve upward. This will generally move the equilibrium point
down and to the left.
up and to the right.
down and to the right.
up and to the left.
it has no effect on the equilibrium point.

Accepted Answer

The answer of A new sales tax has the effect...

Question 12

Which term is used to identify the willingness and ability of buyers to purchase a product?
Obligation
Demand
Wealth
Profits
Prosperity

Accepted Answer

The answer of Which term is used to identify the...

Question 13

An exchange process between buyers and sellers of a particular good or service is known as
a market.
economic trade.
mercantilism.
supply utility.
bartering.

Accepted Answer

The answer of An exchange process between buyers and sellers...

Question 14

Equilibrium in the market is attained when
the laws of supply and demand interact to set the price and quantity of a product at which buyers and sellers agree.
there are no dramatic changes in the market over time.
suppliers are willing to produce the quantity demanded.
no single firm has more than 50 percent of the market.
consumers are willing to pay the price being charged.

Accepted Answer

The answer of Equilibrium in the market is attained when
the...

Question 15

A demand and supply schedule
allows assessment of the relationship between different levels of demand and supply at different prices.
describes the supply for a product.
describes the demand for a product.
is a formula by which one determines market equilibrium.
is the contractual agreement made between the buyer and seller.

Accepted Answer

The answer of A demand and supply schedule
allows assessment of...

Question 16

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service willing to be produced is known as the
equilibrium curve.
demand curve.
balance curve.
variable price curve.
supply curve.

Accepted Answer

The answer of The points on a curve showing the...

Question 17

5-for-1 Pizza is operating at the point where the supply curve intersects the demand curve. If the owner decides to increase the price and not change the production level, what will result?
A shortage
A surplus
More profit
A shift in the supply curve
A shift in the demand curve

Accepted Answer

The answer of 5-for-1 Pizza is operating at the point...

Question 18

What is likely to happen when demand for a commodity is high?
Consumers will try to find substitutes for the commodity.
The price of the commodity will rise.
Criminal behaviour increases with regard to the commodity (e.g., stealing) .
The price of substitute commodities will increase.
All of these statements are correct.

Accepted Answer

The answer of What is likely to happen when demand...

Question 19

In the production of wheat, the law of demand
states that buyers will purchase more wheat as the price decreases.
reflects the farmer's desire to increase wheat production.
comes into play when farmers produce a bumper crop of wheat.
refers to the exchange process between the farmer and the buyer of wheat.
states that at very high prices, there will be no supply.

Accepted Answer

The answer of In the production of wheat, the law...

Question 20

At the point where the supply curve crosses the demand curve on a graph, it could be said that
no profits will be made.
all products offered for sale will be sold.
a shortage will result if the price is too low.
no sales will be made.
a surplus will result if the price is too low.

Accepted Answer

The answer of At the point where the supply curve...

Quiz 1: Understanding the Canadian Business System

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years. The firm decides to expand its battery production. This illustrates the law of supply. the law of market price. the law of equilibrium. the law of demand. the law of supply and demand.

The market research department of BSX Corp. estimated that 5000 CDs would be purchased at a price of $8.00 each. As it turned out, the demand was 6000. The company is in a(n) ________ condition. shortage growth inflation surplus depression

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service which customers will purchase is known as the variable price curve. equilibrium curve. demand curve. supply curve. balance curve.

The price at which the quantity of a product willing to be purchased by customers and the quantity of product willing to be made by a producer are equal is known as the break-even price. the oligopoly price. the balanced price the elastic price. either the market price or the equilibrium price.

The point at which the quantity of a product or service demanded is the same as the quantity supplied is called the surplus point. the equilibrium point. the supply point. the profit point. the demand point.

Tom, a real estate agent, wants to convince a potential customer where the price should be set to sell their home. Tom could use a variable cost curve. demand and supply schedule. supply curve. demand curve. property analysis.

A new sales tax has the effect of shifting the supply curve upward. This will generally move the equilibrium point down and to the left. up and to the right. down and to the right. up and to the left. it has no effect on the equilibrium point.

Which term is used to identify the willingness and ability of buyers to purchase a product? Obligation Demand Wealth Profits Prosperity

An exchange process between buyers and sellers of a particular good or service is known as a market. economic trade. mercantilism. supply utility. bartering.

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service willing to be produced is known as the equilibrium curve. demand curve. balance curve. variable price curve. supply curve.

5-for-1 Pizza is operating at the point where the supply curve intersects the demand curve. If the owner decides to increase the price and not change the production level, what will result? A shortage A surplus More profit A shift in the supply curve A shift in the demand curve

At the point where the supply curve crosses the demand curve on a graph, it could be said that no profits will be made. all products offered for sale will be sold. a shortage will result if the price is too low. no sales will be made. a surplus will result if the price is too low.