ECO (4.3A) Pricing Pt 1 Quiz

1. Prices change or fluctuate in response to:

• wars
• buyers and sellers
• natural disasters
• all of the above

2. Which of the following is NOT an advantage of prices?

• familiarity
• volatility
• neutrality
• efficiency

3. ____ represents a compromise between buyer & seller.

• socialism
• economic growth
• price
• inflation

4. The process of finding a compromise of a price that is “just right” is known as what?

• the price adjustment process
• economic instability
• corruption
• inflation

5. In a competitive market economy, prices are neutral because they favor:

• buyers only
• producers only
• both buyers and producers
• neither buyers nor producers

6. The monetary value of a product as established by the demand for and supply of that product is called what?

• equilibrium quantity
• price
• goods and services
• inflation

7. Which of the following is NOT an advantage of prices?

• equilibrium
• flexibility
• neutrality
• efficiency

8. When quantity supplied of a product equals quantity demanded of that product, this situation is called:

• market equilibrium
• equilibrium quantity
• equilibrium price
• all of the above

9. Equilibrium price is also known as:

• inflationary price
• deflationary price
• market clearing price
• discount price

10. True or False. In a market economy, buyers & sellers have the exact same goals.

• True
• False