Microeconomics Quiz

What is the market in which goods and services are bought and sold?

• Resource market

• Product market

• Circular flow market

• Factor market

According to the Law of Supply, what happens to the quantity producers are willing to provide as the price increases?

• It decreases

• It remains constant

• It increases

• It fluctuates

What is the price at which supply and demand meet, resulting in no shortage or surplus?

• Equilibrium price

• quantity supplied price

• Price floor

• Price ceiling

Organize these options into the right categories

Groups:

(a) Substitutes

,

(b) Complementary Goods

• if the demand product A goes up, the demand for Product B will also go up

• goods that can replace each other

• goods that go together

• Coca-Cola and Pepsi

• if the demand of product A goes up, the demand for Product B will go down

• peanut butter and jelly

• toothbrush and toothpaste

• sugar and Splenda

What is the market in which factors of production are traded?

• Product market

• none of these

• Circular flow market

• Factor/resource market

Which shows the Law of Supply?

• 
• 
• 
• none of these; you cannot graph the law of supply

The maximum price a seller is allowed to charge for a good or service is a _______. The problem with this is it causes a ______.

According to the Law of Demand, what happens to the quantity consumers are willing to buy as the price increases?

• It decreases

• It remains constant

• It increases

• It fluctuates

Business Organizations

Groups:

(a) Corporation

,

(b) Partnership

,

(c) Sole Proprietorship

• two or more owners

• run by a board of directors

• founder can lose control of business

• owner keeps all profits

• unlimited liability on owners

• owned by stockholders

• owners can specialize

• one owner with unlimited liability

What is the term for the minimum price a buyer is supposed to pay for a good or service?

• Price ceiling

• Price floor

• Equilibrium price

• Market clearing price