CE.12a-c Quiz

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

The desire or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up
• it goes down
• it stays the same
• it is not effected

A person who takes a risk to produce goods and services in search of profit - 

• entrepreneur
• magistrate
• profiteer
• baliff

In a proprietorship, the profits are kept by - 

• two people 
• a group of people 
• one person
• the government

What kind of business is BEST described by these statements?
I am the only owner of my business. 
I take all the risks of doing business. 
I keep all the profits. 

• proprietorship
• corporation
• partnership
• cooperative

Consumers have the ability to determine what goods and services will be produced through their purchases-

• Consumer Sovereignty

• Central planning

• Free Enterprise

• Private Property

Characteristic of the US economy that consists of earnings after all expenses have been paid-

• Free Enterprise

• Private Property

• Competition

• Profit motive