Economics Quiz

What is competition in the context of an economy?

How does supply affect the price of a product?

What is the role of the market in the buying and selling of goods and services?

How does the price of a good or service impact the consumer and the business?

What are the three vital roles that affect consumer behavior mentioned in the text?

Why did the author write this text?

• He or she wanted to answer the question, “What is the Market?”

• He or she wanted to describe the difference between goods and services.

• He or she wanted to explain how competition and pricing affect the market.

Match the vocabulary term to its definition. Good or service offered for sale.

What will likely happen if a price is too low?

• The business will make a profit

• The business will not make a profit

• People will not purchase the good or service

• The government will set the price

What determines if a consumer will purchase a good or service?

• Price

• Demand

• The government

• None of the above

What does the underlined word most likely mean?

• Competitive

• Interesting

• Necessary