Marketing Chapter 3 Test Review

True or False. Macroeconomics studies how individuals make decisions about what to produce and what to consume.

• True

• False

A supply curve demonstrates the relationship between price and the quantity of a product supplied.

• True

• False

Consumers will pay more for a product if the supply of that product increases.

• False

• True

A supply curve and a demand curve should never intersect.

• True

• False

As competition increases, businesses find greater opportunities for success.

• True

• False

If there are no alternative products to satisfy consumers' needs,

• The supply will be large.

• The price will be low.

• Supply and demand are unaffected.

• Consumers will pay more.

The point at which supply and demand are equal for a product is known as

• the demand curve

• the supply curve

• the market price

• supply and demand are never equal

All of the consumers who will purchase a particular product or service comprise of a(n)

• supply

• economic market

• economy

• market group

The basic economic problem is

• monopolies

• capitalism

• consumers

• scarcity

The U.S. economy has many characteristics of a private enterprise economy.

• True

• False