Economics Quiz

What type of economy is discussed in the document?

• Command economy

• Free market economy

• Mixed economy

• Traditional economy

Who has significant control over products and services in a free market economy?

• Government officials

• Manufacturers, retail business owners, and consumers

• Only manufacturers

• Only consumers

What is the third question manufacturers consider according to the document?

• What is the cost of production?

• Who is their target market and who are their current customers?

• How to increase advertising?

• What are the competitors doing?

What happens if a product is not well-received by retailers and consumers?

• It will succeed with more advertising

• It will fail regardless of advertising

• It will succeed with lower prices

• It will succeed with better packaging

What market was Qwikster supposed to enter?

• Music streaming market

• Video game rental market

• Book rental market

• Online shopping market

How long did it take for Netflix to roll back their new corporate structure?

• 15 days

• 23 days

• 30 days

• 45 days

What was the outcome of Netflix's new corporate structure?

• It was a huge success

• It was moderately successful

• It did not go over well with consumers

• It was ignored by consumers

How does competition affect pricing?

• It has no effect on pricing

• It allows businesses to set any price they want

• It impacts the price every other retailer will charge

• It makes products more expensive

What happens if a product is priced too high?

• Demand will increase

• Consumers will find less expensive alternatives

• The product will become more popular

• The product will sell out quickly

What is a potential consequence of not considering competition in pricing?

• Increased sales

• Higher demand

• Losing customers to cheaper alternatives

• Better brand recognition