Economics Chapter 1

If the price of printers goes down, what happens in the market for ink cartridges?

• Supply increases.
• Supply decreases.
• Demand increases.
• Demand decreases

In a market economy, who decides on the prices of goods and services?

• government
• buyers and sellers
• firms
• local leaders

Generally speaking, the lower the price, the greater the quantity demand.

• True
• False

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

The desire or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer

The point where supply and demand are balanced is?

• product
• demand
• surplus
• equilibrium

An individual or group who purchases goods.

• producer
• consumer
• goods
• services

The study of resources such as money, materials, and labor

• economics
• services
• producers
• goods

another word for money

• barter
• economics
• currency
• price