Econ SOL 13 Quiz

What does the law of demand state?

• As the price of a good increases, the quantity demanded decreases.

• As the price of a good increases, the quantity demanded increases.

• As the price of a good decreases, the quantity demanded remains unchanged.

• As the price of a good decreases, the quantity supplied decreases.

Which market structure is characterized by a single seller and no close substitutes for the product?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

In a command economy, who primarily determines what goods and services are produced?

• Consumers

• Private businesses

• The government

• Foreign investors

What is entrepreneurship?

• The process of purchasing stocks and bonds

• The act of starting and running one's own business

• Employment in a large corporation

• Investing in government securities

What factor primarily drives the supply of labor in the labor market?

• The demand for consumer goods

• The level of technology in the economy

• Wages offered by employers

• The amount of natural resources available

What is a tariff?

• A tax on imported goods

• A limit on the number of goods that can be imported

• A subsidy for exported goods

• A tax on exported goods

What does the law of supply state?

• As the price of a good increases, the quantity supplied decreases.

• As the price of a good increases, the quantity supplied increases.

• As the price of a good decreases, the quantity supplied remains unchanged.

• As the price of a good decreases, the quantity supplied increases.

Which market structure is characterized by many sellers and differentiated products?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

What is a characteristic of a mixed economy?

• Complete government control over production

• No government intervention in the economy

• A combination of private and public (government) ownership and control

• Solely private ownership of all resources

Which of the following best describes the role of an entrepreneur?

• To provide labor to businesses

• To invest in government securities

• To innovate, take risks, and bring new products to market

• To regulate market activities