2-7 Quiz Pricing

A method used to set a price for a product, with the goal of creating optimum value for both the seller and buyer is known as which of the following?

• pricing

• free market

• 
  economic incentives

• 
  rational choice theory

A shop receives the newest car model from a manufacturer with a suggested range of prices from $20,000 - $30,000. After negotiations, the car actually sold for $22,000. This price is known as which of the following?

• private enterprise

• free market

• selling price

• economic incentives

Which of the following is an economic system where production, wages, and prices are determined via the application of the law of supply and demand, with little or no government regulations?

• economic incentives

• 
  selling price

• free market

• 
  rational choice theory

Which of the following assumes that people will generally make choices based on their own personal preferences and desired outcomes?

Total Points

Select an an

• economic incentives

• 
  pricing

• 
  free market

• rational choice theory

In a free market, and assuming rational choices are made, people usually respond to _______.

• economic incentives

  Correct

• 
  pricing

• 
  private enterprise

• 
  selling price

Which of the following best demonstrates an economic incentive?

• 
  working more hours

• a raise in salary

• 
  buying expensive items

• 
  a range of prices

The current prevailing price listed for a product in the marketplace is known as which of the following?

• 
  private enterprise

• 
  selling price

• market price

  
  

• 
  economic incentive

The price of one product or service as compared to another, expressed as a ratio between two prices is known as which of the following?

• relative price

• 
  market price

• 
  selling price

• 
  pricing

The price of one product or service as compared to another, expressed as a ratio between two prices is known as which of the following?

• relative price

• market price

• selling price

• 
  pricing

A customer sees a pair of jeans from a brand priced for $100 at one store. When they go to another store, they see a similar, but slightly lesser-quality pair of jeans for $40 less. The customer decides to buy the jeans that are $40 cheaper. This is best demonstrating which of the following?

• 
  relative price

• substitution effect

• 
  market price

• rational choice