Lesson 2.5.1
2.5.1 Demand, supply, equilibrium and disequilibrium Quiz: OCR Economics, Unit 2
20 questions
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Lesson 2.5.1, Demand, supply, equilibrium and disequilibrium: 20 multiple choice questions for the OCR Economics (H460), Unit 2: The role of markets, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
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What relationship does the law of demand show between price and quantity demanded?
- Exponential relationship
- Inverse relationship
- Direct relationship
- Constant relationship
-
What relationship does the law of supply show between price and quantity supplied?
- Inverse relationship
- Indirect relationship
- Negative relationship
- Direct relationship
-
What occurs when quantity demanded equals quantity supplied in a free market?
- Market equilibrium
- Excess demand
- Excess supply
- Market failure
-
If market price is set below the equilibrium price, what condition is created?
- Market equilibrium
- Excess demand
- Excess supply
- Market deficit
-
If market price is above the equilibrium price, what condition occurs in the market?
- Excess demand
- Excess supply
- Market clearing
- Supply shortage
-
Which factor causes a movement along a demand curve rather than a shift?
- Consumer preferences
- Change in income
- Price of substitutes
- Change in price
-
What term describes two goods where an increase in the price of one increases demand for the other?
- Substitute goods
- Inferior goods
- Complementary goods
- Normal goods
-
What term describes goods that are consumed together, like cars and petrol?
- Veblen goods
- Complementary goods
- Substitute goods
- Independent goods
-
If consumer incomes rise and demand for a good increases, what type of good is it?
- Giffen good
- Inferior good
- Normal good
- Public good
-
If consumer incomes rise and demand for a good decreases, how is that good categorised?
- Inferior good
- Superior good
- Complementary good
- Normal good
-
What economic law explains why the demand curve is generally downward sloping?
- Comparative advantage
- Increasing marginal returns
- Diminishing total utility
- Diminishing marginal utility
-
What impact does an increase in production costs have on a market supply curve?
- No effect
- Shifts left
- Shifts right
- Movement upwards
-
How does the grant of a government subsidy to producers affect the supply curve?
- Movement downwards
- Shifts left
- Remains unchanged
- Shifts right
-
Which function of the price mechanism allocates scarce resources to buyers who value them most?
- Signalling function
- Incentive function
- Allocative function
- Rationing function
-
Which function of the price mechanism provides information to producers about changing consumer wants?
- Rationing function
- Signalling function
- Incentive function
- Transmission function
-
Which function of the price mechanism motivates suppliers to increase output when prices rise?
- Incentive function
- Signalling function
- Welfare function
- Rationing function
-
What type of demand occurs when two goods are bought together to satisfy a single want?
- Competitive demand
- Derived demand
- Joint demand
- Composite demand
-
What type of demand exists for a factor of production based on demand for the final product?
- Effective demand
- Composite demand
- Joint demand
- Derived demand
-
What type of demand exists when a good is demanded for multiple separate uses?
- Latent demand
- Derived demand
- Composite demand
- Joint demand
-
If demand is Qd = 100 - 2P and supply is Qs = 3P, what is equilibrium price?
- £50
- £25
- £10
- £20
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