Supply and demand questions post test review
1. Which of the following correctly describes a traditional economy?
A. The basic economic questions are based on ritual, habit, and custom
B. The government decides what, how, and for whom to produce
C. The U.S. is an example of a traditional economy
D. Buyers and sellers decide what to produce
2. The high degree of freedom in a market system is illustrated by the fact that
A. Consumers buy the goods and services they are told to buy
B. Producers make their products only in tried and true ways
C. Individuals are told when and where to work
D. Producers may make whatever they think will sell
3. A mixed economy has features of two economic systems:
A. Command and Traditional
B. Command and Market
C. Command and Demand
D. Command and Mixed
4. Which economic question is this?
Businesses must find the best way to encourage customers to purchase their products.
A. What goods and services should be produced?
B. How should the goods and services be produced?
C. For whom should the goods and services be produced?
D. Why are the goods and services produced?
5. The market condition in which one supplier offers a unique product
A. Monopoly
B. Oligopoly
C. Pure competition
D. monopolistic competition
Supply and demand questions post test review
6. The market in which there are many firms competing with products that are somewhat different.
A. monopolistic competition
B. monopoly
C. oligopoly
D. Pure competition
7. The basic ideas that make a free enterprise system work are
A. Competition, profit, and private property
B. Freedom, efficient use of resources, and profit
C. Profit, efficient use of resources, and risk
D. Natural resources, profit, and private property
8. When each additional unit of a product gives you less utility it is known as what?
A. Marginal analysis
B. Diminishing marginal utility
C. Decreasing desire
D. Downward demand
9. An improvement in production technology for a specific good will cause a(n):
A. drop in price and increase in quantity demanded
B. increase in demand and a drop in price
C. increase in demand and an increase in price
D. increase in supply and an increase in price
10. The output of one producer or the total output of all producers in the market is called
A. Market demand
B. Market supply
C. Market surplus
D. Market equilibrium