Marko's Practice for final

Front

The point at which prices is set follows which of the following: Law of Supply, Law of Demand, Law of Supply & Law of Demand, Law of Price?

Back

Law of Supply & Law of Demand

Front

In a Market Economy, how is price determined?

Back

Price is determined by the buyers and sellers who participate in the economy.

Front

When a price ceiling is in place keeping the price below the market price, what’s larger: quantity demanded or quantity supplied?

Back

Quantity demanded

Front

In order to be effective, a price ceiling must be set _____ the equilibrium price.

Back

Below

Front

A minimum price set above the equilibrium price is a:

Back

price floor

Front

A maximum price set below the equilibrium price is a:

Back

price ceiling

Front

A price ceiling

Back

has an effect on the market when it is below the equilibrium price

Front

The opportunity cost of increasing production from 7 to 9 trucks is

Back

3 boats

Front

The circular flow model of a market economy shows: how profits are made, what inputs are required for what outputs, how many firms can support the needs of how many households, the interactions between households and  firms in the free market

Back

the interactions between households and  firms in the free market

Front

What are the four main parts of the circular flow diagram? Options: Product Market, Stock Market, Factor Market, Fish Market; Product Market, House Market, Factor Market, Good Market; Factor Market, Product Market, Households, Firms; Factor Market, households, Stock Market, super market

Back

Factor Market, Product Market, Households, Firms