Market Economy Quiz

Who is setting the prices of goods and services in a market economy?

• Sellers

• Buyers

• Sellers and buyers

• Government

What is the quantity of a product that suppliers will provide in a market transaction?

• Monopoly

• Demand

• Competition

• Supply

What is the quantity of a product consumers want in a market transaction?

• Supply

• Monopoly

• Demand

• Competition

What is created when people willing to sell a commodity contact people willing to buy it?

• Demand

• Market

• Monopoly

• Competition

What kind of market has only one seller or a very limited number of sellers?

• Monopoly

• Real Market

• Oligopoly

• Monopolistic competition

How many prices can be for a given commodity in a perfect market?

• it depends on specific conditions

• two prices

• numerous prices

• only one price

What kind of monopoly arises when a country has control over major natural resources or important services?

• Perfect Market

• Natural Monopoly

• Legal Monopoly

• State Monopoly

What kind of monopoly occurs when the law permits certain producers, authors, and inventors a full monopoly over the sale of their own products?

• Perfect Market

• State Monopoly

• Natural Monopoly

• Legal Monopoly

What does "cornering the market" mean?

• loosing control over the market

• obtaining total control over the market

• setting the highest prices

• price fluctuations

What is the motive considered by the market system?

• Highest Profits

• Charity

• Environmental Conservation

• Social Welfare