The Role of Market Forces

The Role of Market Forces

The Role of Market Forces

Investors looked to the market to decide where to invest or what businesses to start. In a market economy, goods are bought and sold, and wages are determined by the market.

Multiple Choice

In a market economy, goods are bought and sold, and wages are determined by:

• consumers

• the market

• capitalists

• Congress

Multiple Choice

If a product is in high demand and the supply is limited, the price will be low.

• True

• False

Multiple Select

People with skills that were in demand in factories could expect higher wages than those whose skills had less value in the market.

• True

• False

The Role of Market Forces

If a product is in high demand and supply is limited, the price will be high.

The Role of Market Forces

Entrepreneurs started businesses to supply high-priced or high-demand products. They abandoned businesses where the demand and prices were low.

The Role of Market Forces

Workers faced the same market forces. People with skills that were in demand in factories could expect higher wages than those whose skills had less value in the market.