Chapter 8 - Market Forces Quiz

What are the three market forces?

• Supply, demand, and government regulation

• Supply, demand, and profit

• Demand, profit, and consumer choice

• Profit, competition, and economic indicators

How can a business increase its profits?

• By decreasing the quality of products

• By increasing the cost of production

• By identifying three ways to increase profits

• By describing the principle of supply and demand

What is the role of the consumer in the marketplace?

• Consumers regulate the market forces

• Consumers determine which products will be produced by voting with their dollars

• Consumers compete with businesses on price and nonprice competition

• Consumers describe the principle of supply and demand

What is profit in the context of the marketplace?

• The cost of producing and selling a product

• The revenue from sales that exceeds the cost of producing and selling a product

• The total amount of money a business spends

• The amount of products a business sells

What are two ways that businesses compete with one another?

• Based on price and government policies

• Based on supply and demand

• Based on price and nonprice competition

• Based on profit and economic indicators

What is market supply?

• The total demand of every individual willing and able to buy a specific product.

• The point at which the demand and supply curves intersect.

• The total supply of every seller willing and able to sell a specific product.

• A way other than price to win business.

What does the law of supply and demand state?

• When business owners earn profits and are motivated to start and expand businesses.

• It is assigning a worker or group of workers to a specialized task for increased efficiency.

• A way other than price to win business.

• That the greater the demand for a given supply of a product, the price will be higher.

What is equilibrium in the context of market forces?

• The total supply of every seller willing and able to sell a specific product.

• The point at which the demand and supply curves intersect.

• When business owners are motivated to start and expand businesses.

• Assigning a worker or group of workers to a specialized task for increased efficiency.

What is the profit motive?

• The total demand of every individual willing and able to buy a specific product.

• The point at which the demand and supply curves intersect.

• When business owners earn profits and are motivated to start and expand businesses.

• A way other than price to win business.

What is specialization?

• The total supply of every seller willing and able to sell a specific product.

• The point at which the demand and supply curves intersect.

• When business owners earn profits and are motivated to start and expand businesses.

• Assigning a worker or group of workers to a specialized task for increased efficiency.