Economics test review

Which of the following is true about the free enterprise/market economy?

• There is competition.

• People control and own businesses and private property.

• People are motivated by profit.

• All of the above

The quantity or amount of a good or service that are available.

• demand

• supply

• wage

• interest

To trade not using money.

• switch

• swap

• barter

• profit

When the supply is greater than the demand of a good, the price ______________.

• goes up

• goes down

• stays the same

The relationship between the amount of goods that exist and the amount that people are willing to buy

• Taxes

• Free Market Economy

• Economy

• Supply and Demand

People own their own goods and property; producers are free to decide what goods and services to make and what prices to charge.

• Command Economy
• Free Market Economy
• Traditional Economy
• The Cheese Economy

Government rulers tell members of society how the much to produce and the price.

• Command Economy

• Free Market Economy

• Traditional Economy

• The Chicken Economy

Define Supply

• a consumer's willingness to pay a set price for a specific good or service

• the amount of product that a producer is willing and able to sell in the marketplace

• more items available for sale than people want to purchase

• more people want an item than is available for purchase

If the store has 100 packs of toilet paper and 200 people want to buy it, is it a shortage or surplus?

• shortage

• surplus

Sometimes stores will put things on sale so that there won't be a surplus of goods leftover.

• True

• False