Economics Demand and Supply Quiz
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Questions and Answers

What happens to the demand curve when there is an increase in income?

  • It shifts leftward.
  • It remains unchanged.
  • It shifts rightward. (correct)
  • It becomes vertical.

    • How does an increase in the price of a substitute good affect the demand for another good?

  • Has no effect on the demand.
  • Increases the demand for the other good. (correct)
  • Causes the demand to become elastic.
  • Decreases the demand for the other good.

    • What is the expected effect on equilibrium quantity when the price of a complement decreases?

  • Increase. (correct)
  • Decrease.
  • Remain unchanged.
  • Become indeterminate.

    • What occurs in the supply curve when there is an increase in resource prices?

    <p>It shifts leftward. (A)</p> Signup and view all the answers

    How does improved technology affect the supply curve?

    <p>It shifts the supply curve rightward. (D)</p> Signup and view all the answers

    When the number of suppliers decreases, what is the impact on the equilibrium price?

    <p>It increases. (C)</p> Signup and view all the answers

    What is the effect of an expected price decrease on supply?

    <p>It increases supply. (D)</p> Signup and view all the answers

    What direction does the demand curve shift when there is a decrease in the number of consumers?

    <p>It shifts leftward. (D)</p> Signup and view all the answers

    What occurs when the price is set above Br.10/kg?

    <p>Excess supply occurs. (C)</p> Signup and view all the answers

    How does an increase in demand while supply remains constant affect the equilibrium?

    <p>Equilibrium price rises and quantity increases. (C)</p> Signup and view all the answers

    What is the result of a decrease in supply while demand stays constant?

    <p>Price increases and quantity decreases. (A)</p> Signup and view all the answers

    Which factor does NOT typically change demand?

    <p>Changes in resource prices. (D)</p> Signup and view all the answers

    What happens to equilibrium if both demand increases and supply decreases?

    <p>Equilibrium price and quantity both increase. (C)</p> Signup and view all the answers

    What does utility represent in consumer behavior?

    <p>The level of satisfaction derived from a commodity (C)</p> Signup and view all the answers

    How does the relativity of utility affect consumer choices?

    <p>The same commodity can provide different levels of utility to different consumers. (D)</p> Signup and view all the answers

    What is the law of diminishing marginal utility?

    <p>Each additional unit consumed provides less additional satisfaction. (D)</p> Signup and view all the answers

    Which statement best describes the cardinal utility theory?

    <p>Utility can be measured in numerical values based on satisfaction. (A)</p> Signup and view all the answers

    What does the consumer maximization problem entail?

    <p>Maximizing utility within given budget constraints. (A)</p> Signup and view all the answers

    What assumption is made in ordinal utility theory?

    <p>Consumers rank their preferences without expressing how much more they prefer one over another. (A)</p> Signup and view all the answers

    Why might the utility of a product vary in different temporal contexts?

    <p>Environmental factors can alter the perceived satisfaction. (B)</p> Signup and view all the answers

    What is one impact of consumer income on utility derived from goods?

    <p>Income allows consumers to access more goods, potentially increasing satisfaction. (A)</p> Signup and view all the answers

    What defines a market?

    <p>A system for exchanging goods and services (C)</p> Signup and view all the answers

    At equilibrium, what occurs between the market demand and supply curves?

    <p>They intersect (C)</p> Signup and view all the answers

    Which statement about the law of demand is correct?

    <p>There is an inverse relationship between price and quantity demanded. (B)</p> Signup and view all the answers

    Which of these is true regarding price elasticity of demand?

    <p>The value is usually negative. (C)</p> Signup and view all the answers

    Which factor does NOT determine demand?

    <p>Technology and production methods (A)</p> Signup and view all the answers

    If the demand for good Z increases when the price of good Y decreases, what are goods Z and Y classified as?

    <p>Complements (B)</p> Signup and view all the answers

    If the cross elasticity of demand between two goods is 0, what does this indicate?

    <p>They are unrelated goods. (D)</p> Signup and view all the answers

    Which statement regarding income elasticity of demand is correct?

    <p>A positive income elasticity indicates a normal good. (B)</p> Signup and view all the answers

    What is the primary focus of the Theory of Consumer Behaviour?

    <p>Understanding consumer preferences and utility (D)</p> Signup and view all the answers

    Which theory explains the concept of utility in a measurable way?

    <p>Cardinal Utility Theory (D)</p> Signup and view all the answers

    What does market equilibrium refer to?

    <p>The point where demand and supply curves intersect (B)</p> Signup and view all the answers

    Which type of market structure is characterized by many sellers and free entry and exit?

    <p>Perfectly Competitive Market (A)</p> Signup and view all the answers

    What does the Theory of Cost address?

    <p>The relationship between production inputs and outputs (A)</p> Signup and view all the answers

    Which aspect of banking does the introduction to financial intermediary focus on?

    <p>Role of banks in facilitating transactions between savers and borrowers (A)</p> Signup and view all the answers

    Elasticities of demand primarily measure what?

    <p>How quantity demanded responds to price changes (A)</p> Signup and view all the answers

    The term 'monopolistically competitive market' refers to what?

    <p>A market structure with hundreds of sellers and differentiated products (C)</p> Signup and view all the answers

    What is one key characteristic of electronic banking?

    <p>Offers 24/7 access to banking services (B)</p> Signup and view all the answers

    Which of the following variables is NOT typically reviewed in macroeconomic analysis?

    <p>Consumer Preferences (D)</p> Signup and view all the answers

    What happens to marginal product of labor (MPL) in Stage I of production?

    <p>MPL continues to rise. (A)</p> Signup and view all the answers

    In which stage does the total product (TP) start to decline?

    <p>Stage III. (A)</p> Signup and view all the answers

    When does the average product of labor (APL) reach its maximum value?

    <p>When MPL is equal to APL. (D)</p> Signup and view all the answers

    What characterizes Stage II of production?

    <p>MPL is positive but decreasing. (A)</p> Signup and view all the answers

    Which statement correctly describes the relationship between MPL and APL?

    <p>MPL is always above APL when APL is rising. (A)</p> Signup and view all the answers

    What occurs when APL is falling?

    <p>MPL is less than APL. (A)</p> Signup and view all the answers

    What is the implication of MPL becoming negative?

    <p>Total product starts to decline. (D)</p> Signup and view all the answers

    What does average revenue (AR) refer to?

    <p>Total revenue divided by the number of units sold. (B)</p> Signup and view all the answers

    Study Notes

    Economics Textbook for Grade 10, Ethiopia

    • The textbook is a property of the school and should be handled with care.
    • Cover the book with protective material (plastic, newspapers, magazines).
    • Keep the book in a clean, dry place.
    • Keep hands clean when handling the book.
    • Do not write on the cover or inside pages.
    • Use paper or cardboard as bookmarks.
    • Never tear or cut out pictures or pages.
    • Repair torn pages with paste or tape.
    • Pack the book carefully in your school bag.
    • Handle the book with care when giving it to another person.
    • When using a new book, lay it flat and open a few pages at a time.

    Economics Textbook Authors and Editors

    • Writers: Achalu Berecha Dhaba (MA, MSc), Leta Sera Bedada (PhD)
    • Editors: Mesfin Ketema (MSc), Enguday Ademe Mekonnen (PhD), Birhanu Engidaw Getahun (PhD)
    • Illustrator: Endalkachew Mengesha Yasab (MSc)
    • Designer: Derejaw Lake Melie (MSc)
    • Evaluators: Mekonnen Bersisa Gadisa (PhD), Tariku Mulushewa Dessea (MSc), Ararssa Hora Dabi (MSc)

    Economics Textbook Content and Structure

    • The textbook is intended for Grade 10 students in Ethiopia.

    • The content builds on knowledge from previous grades.

    • There are eight units in the book.

      The contents cover

    • The theory of consumer behavior (utility, utility calculation, and law of diminishing marginal utility)

    • Theories of demand and supply (elasticity & equilibrium)

    • Theory of production and cost

    • Market structures(perfectly competitive, monopoly, monopolistically competitive, and oligopoly)

    • Banking and finance

    • Economic growth

    • The Ethiopian economy

    • Business startups and innovation

    • Each unit also has objectives, key concepts, and startup activities, tables, and examples.

    • Additional references are listed at the end of the book.

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    Related Documents

    Grade 10 Economics Textbook PDF

    Description

    This quiz explores various concepts of demand and supply in economics. It covers topics such as the effects of income changes, substitute goods, complement goods, and resource prices on the demand and supply curves. Test your understanding of equilibrium concepts and shifts in the market.

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