CBSE Class 7 Social Science Understanding Markets (Class 7 NCERT New) Quiz 5

1. Who are the main participants in a market?

A Buyers and sellers B Teachers and students C Government and businesses only D Banks and hospitals

2. What does the market equilibrium show?

A The point where government sets prices B The balance where demand equals supply C A shortage in the market D An excess supply of goods

3. If price is set above equilibrium, what happens?

A Shortage B Surplus C Equilibrium D Demand increases

4. If price is set below equilibrium, what happens?

A Surplus B Market closes C Shortage D No change

5. Which of these belongs to microeconomics?

A Inflation in a country B Unemployment rate C The demand for pizza in one town D National economic growth

6. Which of these belongs to macroeconomics?

A Demand for bubble tea B Price of cinema tickets C A household’s spending D Country’s overall GDP growth

7. The three economic questions are:

A What to buy, how to buy, where to buy B What to produce, how to produce, for whom to produce C When to produce, how much to produce, who sells it D Why to produce, who consumes, who owns it

8. On a demand curve, what happens when price falls?

A Contraction in demand B Extension in demand C Supply decreases D No change

9. On a demand curve, what happens when price rises?

A Contraction in demand B Extension in demand C Supply increases D Equilibrium shifts

10. What does “quantity demanded” mean?

A The number of goods producers are willing to sell B The number of goods buyers are willing and able to buy at a given price C The cost of producing goods D The government’s spending on goods