Markets, Efficiency, and Price Signals: Crash Course #19

What kind of markets have been most successful at providing things people want?

• competitive markets

• government markets

• central planning

• bear markets

State of the economy in which production represents consumer preferences.

• allocative efficiency

• productive efficiency

The idea that products are being made at the lowest possible cost.

• productive efficiency

• allocative efficiency

Price signals tell us about consumers ...

• wants.

• spending power.

• credit position.

• cash position.

Competition between businesses is good because it keeps price and quality up.

• True

• False

When sellers raise prices for essential items to a much higher level than is considered reasonable it is called (a)   gouging.

(a)   pricing happens when a business drives out competitors by charging such low prices that the competitor can't stay in business.

The opposite of altruism is ...

• capitalism

• communism

• socialism

As a consumer, you can make choices on what to buy or how much to buy, and those choices help shape social values.

• True

• False