Ch.13 Supply and Demand

Which statement BEST defines a regional exchange?

• The purchase of a good when both the producer and consumer are located in the same town.

• The purchase of a good when the producer is in one grand division and the consumer is in another.

• The purchase of a good when a producer uses a road to deliver it to the consumer.

• The purchase of a good when a producer and consumer interact over the internet.

Why do producers and consumers have to make choices?

• because they have limited resources and unlimited wants

• because they have unlimited resources and unlimited wants

• because they have limited resources and limited wants

• because they have unlimited resources and limited wants

What stops people from having all the goods they want?

• unlimited resources

• demand

• unlimited wants

• scarcity

What will MOST likely happen if the price of peanut butter decreases?

• Consumers will buy more.

• Consumers will buy less.

• Consumers will buy the same amount.

Why might the price of a good increase?

• There is a shortage of the good.

• There is an increase in supply

• There is a surplus of the good.

• There is a decrease in demand.

Which of these examples is a local exchange?

• A hardware store in West Tennessee buys

  nails from a supplier in East Tennessee.

• A man in East Tennessee buys maple syrup made in Vermont from the grocery store in his town.

• A man in Middle Tennessee buys a book from a website whose owner is in East Tennessee.

• A woman in West Tennessee buys vegetables from a vegetable stand in her community.

If a drought kills half of the soybean crop, what will happen to the price of soybeans?

• It will decrease.

• It will increase.

• It will stay the same.

Which statements correctly describe how the U.S. economy works? (Choose 2)

• Producers decide what goods and services to provide based on price.

• The government decides what goods and services producers will provide.

• The government decides what goods and services consumers will buy.

• Consumers decide what goods and services to buy based on price.