1.01 Economics Quiz Key

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economics quiz 1.01
1. Production of a new brand of shoes is an example of answer- what to produce

2. Neeraj carves wooden squirrels, which he sells to benefit the local nature center. He charges $30 for each squirrel. Squirrels are Neeraj's economic answer to which question? answer-What to produce?

3. You have to choose between playing a team sport or taking music lessons because the practices overlap. This choice demonstrates that answer-time is scarce

4. Ezra runs a gyro stall at the local farmers' market. He would like to expand and open his own shop downtown. He has made the chart above, listing some potential costs and benefits of expansion. If Ezra decides not to expand, what will be an opportunity cost of his choice? answer-Increased sales

5. In the graph above, a shift from point A to point B represents which of the following? answer-An increase in quantity demanded

6. Use the above graph to answer the following question. Which line indicates the demand curve? answer. one

7. Use the above graph to answer the following question. Which of the following may occur as a result of an increase in the price of iPods? answer- Move from point U to point S

8. Which of the following would most likely cause a decrease in the quantity supplied? answer- A decrease in price

9. Equilibrium price is the answer-point where supply and demand meet

10. A new CD is being marketed to teens at a price of $20. The suppliers are selling all of the CDs they have, and the teens are getting all of the CDs they are demanding, so $20 could be defined as the CD's answer-equilibrium price

11. A pop-music icon has become the spokesperson for a new style of jeans. Which of the following is the most likely result? answer- Demand for the jeans will increase, and market price will increase.

12. The graph above shows supply and demand for a popular brand of coffee. A gas crisis affects shipping costs.

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