OCR GCSE Economics - 2.4 - Price

What is the name for the point at which supply and demand come together

• Price ceiling

• Excess demand

• Equilibrium

• Disequilibrium

A situation in which resources are distributed according to price is called:

• Rationing

• A black market

• A supply shock

• A free market

A sudden shortage of a good is called:

• Rationing

• A black market

• A supply shock

• A free market

Dividing up goods and services without regard to price is called:

• Rationing

• A black market

• A supply shock

• A free market

Business conducted without regard for government controls is called:

• Rationing

• A black market

• A supply shock

• A free market

Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store are reduced. What causes this change?

• Prices or availability of substitutes

• Prices or availability of complementary goods

• Change in the weather or season

• Change in the number of buyers

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

• There is a change in cost of production

• The number of producers changes

• The expectations of consumers changes

• The output rate declines

Mr Coyote goes to the ticket booth to buy tickets for a Liverpool game. Mr Coyote is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available?

• The arena forgot to print enough tickets

• The supply of tickets was greater than the demand

• The arena charged too much money for each ticket

• The demand for tickets was greater than the supply

When companies compete in a market economy, what is usually the result?

• Consumers are able to buy goods for the best available price

• People pay much higher prices for goods

• There are frequent shortages of goods on the market

• Producers refuse to sell some of their products

If the price of a substitute to good X were to increase, then:

• The demand for good X will increase

• The market price of good X will increase

• The demand for good X will decrease

• The demand for good X will not change