VOTE Quiz #4 Chapter 5

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change

The law of supply states that if the price of CD’s rise, suppliers will

• Supply more CDs
• Supply fewer CDs
• Quantity supplied will not change

Which of the following is NOT a determinant of the supply of peanut butter?

• The price of peanuts 
• The wages of peanut butter factory workers 
• The income of peanut butter consumers
• Existing peanut butter making technology

What does a “surplus” (extra amount) of goods in a market imply?

• Prices are too high
• Prices are too low
• Supply is too low
• Demand is too high

Due to a disappointing economy, Americans are cutting back on the family vacation road trips. What happens to the market for gasoline?

• Demand for gasoline will decrease 
• Demand for gasoline will increase
• Demand for gasoline will stay the same

Costs of producing gasoline has increased due to rising energy costs. What happens to the market for gasoline?

• Supply for gasoline will decrease 
• Supply for gasoline will increase
• Supply for gasoline will stay the same

Price signals tell us about consumers ...

• wants.

• spending power.

• credit position.

• cash position.

the part of Capitalism that naturally made for low prices and high quality

• Competition

• Government control

• Guilds

• Fixed wealth

what provides for the needs of society in Capitalism?

• Invisible Hand

• Foot Binding

• Copper Hand

• Mercantilism

Which broad social goal is important in a market system but not as important in a centrally-planned (command) one?

• Equity

• Efficiency

• Security

• Stability