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Economics and Markets Practice Tests

These Grade 10 Social Studies practice tests examine scarcity, opportunity cost, factors of production, incentives, productivity, supply and demand, market structures, money, banking, inflation, unemployment, fiscal and monetary policy, trade, externalities, and public goods.

Skills covered

  • Explaining scarcity, trade-offs, opportunity cost, incentives, productivity, specialization, and economic systems
  • Analyzing supply, demand, equilibrium, shortages, surpluses, elasticity, price controls, competition, and monopoly
  • Understanding money, banking, interest, GDP, inflation, unemployment, business cycles, fiscal policy, and monetary policy
  • Applying comparative advantage, imports, exports, tariffs, quotas, exchange rates, and globalization
  • Evaluating externalities, public goods, entrepreneurship, taxes, inequality, social insurance, and policy trade-offs

How to use these practice tests

Define the economic term first, then identify the incentive, scarce resource, market change, or policy goal in the question. Consider who benefits, who bears the cost, and what opportunity cost follows.

For more Grade 10 Social Studies practice, return to the Grade 10 Social Studies category.

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Grade 10 Economics and Markets Practice Tests

Practice Grade 10 Social Studies questions about scarcity, opportunity cost, incentives, supply and demand, market structures, money, banking, macroeconomics, trade, and public policy.

Choose the best answer. Apply economic vocabulary, identify incentives and trade-offs, explain market changes, and connect policy decisions to costs and benefits.

10 Questions
0/10 Questions0 %
Correct 0
Incorrect 0
Unanswered 10
1. QuestionMultiple choice

What does the law of demand generally state?

Please select an answer first.

Correct answer: A

The correct answer is As price rises, quantity demanded tends to fall, other factors held constant..

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: The law of demand describes an inverse relationship between price and quantity demanded, all else equal.
  3. Check the conclusion: The correct answer is As price rises, quantity demanded tends to fall, other factors held constant..

The law of demand describes an inverse relationship between price and quantity demanded, all else equal.

2. QuestionMultiple choice

What does the law of supply generally state?

Please select an answer first.

Correct answer: B

The correct answer is As price rises, quantity supplied tends to rise, other factors held constant..

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: Higher prices can encourage producers to offer more because the potential revenue and profit are greater.
  3. Check the conclusion: The correct answer is As price rises, quantity supplied tends to rise, other factors held constant..

Higher prices can encourage producers to offer more because the potential revenue and profit are greater.

3. QuestionMultiple choice

What is market equilibrium?

Please select an answer first.

Correct answer: C

The correct answer is The price and quantity at which quantity supplied equals quantity demanded.

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: At equilibrium, the plans of buyers and sellers are balanced and there is neither a shortage nor a surplus.
  3. Check the conclusion: The correct answer is The price and quantity at which quantity supplied equals quantity demanded.

At equilibrium, the plans of buyers and sellers are balanced and there is neither a shortage nor a surplus.

4. QuestionMultiple choice

What is a shortage?

Please select an answer first.

Correct answer: D

The correct answer is A situation in which quantity demanded is greater than quantity supplied at a given price.

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: A shortage occurs when buyers want more than sellers offer at the current price.
  3. Check the conclusion: The correct answer is A situation in which quantity demanded is greater than quantity supplied at a given price.

A shortage occurs when buyers want more than sellers offer at the current price.

5. QuestionMultiple choice

What usually happens to demand for a normal good when consumer income rises?

Please select an answer first.

Correct answer: A

The correct answer is Demand tends to increase..

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: For a normal good, higher income usually allows consumers to buy more at each price.
  3. Check the conclusion: The correct answer is Demand tends to increase..

For a normal good, higher income usually allows consumers to buy more at each price.

6. QuestionMultiple choice

What is price elasticity of demand?

Please select an answer first.

Correct answer: B

The correct answer is A measure of how responsive quantity demanded is to a change in price.

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: Elasticity describes the degree to which buyers change quantity demanded when price changes.
  3. Check the conclusion: The correct answer is A measure of how responsive quantity demanded is to a change in price.

Elasticity describes the degree to which buyers change quantity demanded when price changes.

7. QuestionMultiple choice

What is a price ceiling?

Please select an answer first.

Correct answer: C

The correct answer is A legal maximum price.

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: A price ceiling prevents sellers from charging above a specified maximum and may cause a shortage if set below equilibrium.
  3. Check the conclusion: The correct answer is A legal maximum price.

A price ceiling prevents sellers from charging above a specified maximum and may cause a shortage if set below equilibrium.

8. QuestionMultiple choice

What is a price floor?

Please select an answer first.

Correct answer: D

The correct answer is A legal minimum price.

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: A price floor prevents prices from falling below a specified minimum and may create a surplus if set above equilibrium.
  3. Check the conclusion: The correct answer is A legal minimum price.

A price floor prevents prices from falling below a specified minimum and may create a surplus if set above equilibrium.

9. QuestionMultiple choice

What is competition?

Please select an answer first.

Correct answer: A

The correct answer is Rivalry among sellers or buyers that can influence prices, quality, and innovation.

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: Competition encourages firms to attract customers and can improve efficiency, quality, and prices.
  3. Check the conclusion: The correct answer is Rivalry among sellers or buyers that can influence prices, quality, and innovation.

Competition encourages firms to attract customers and can improve efficiency, quality, and prices.

10. QuestionMultiple choice

What is a monopoly?

Please select an answer first.

Correct answer: B

The correct answer is A market dominated by one seller with significant control over supply or price.

  1. Identify the economic concept: Determine whether the question asks about scarcity, incentives, market forces, macroeconomic conditions, trade, finance, or public policy.
  2. Connect the evidence: A monopoly has one major seller and high barriers may limit competition and consumer choice.
  3. Check the conclusion: The correct answer is A market dominated by one seller with significant control over supply or price.

A monopoly has one major seller and high barriers may limit competition and consumer choice.

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