14.1- The Principles of Our Market Economy Quiz

According to the law of demand, what happens to product prices when they are low?

• More people will buy

• Producers make more money

• More products are made

• None of the above

What are the four resources that producers need in order to create goods?

• Technology, workers, money, and buildings

• Rent, buildings, capital, and money

• Labor, land, raw materials, and capital

• Tools, interest, wants, and needs.

(a)   is the amount of a product that producers are willing and able to offer at different prices.

When producers make more shirts to sell at $60 than they did at $40, this shows what?

• The law of supply

• The law of demand

• The market price

• Circular flow

Market price is determined by what?

• Circular flow

• Law of supply

• Law of demand

• Laws of supply and demand

(a)   is the amount of a product that buyers are willing and able to buy at different prices.

Which of the following, along with price, affects the demand for a product?

• Advertising

• Styles of fashion

• Popularity of a brand

• All the above

What do workers get in exchange for their labor?

• Interest

• Wages

• Rent

• Land

________ is the payment for the use of capital.

• Supply

• Market Price

• Interest

• Demand

The free market economy depends on a circular flow of what?

• Goods and Services

• Money

• Labor

• All the above