Economics Quiz

What are substitute goods?

• Products or services that can be used in place of each other.

• Products and services that are used together.

• Government payment to encourage economic activity.

• Required payments to a government.

What are complementary goods?

• Products and services that are used together.

• Products or services that can be used in place of each other.

• The quantity of a good or service that consumers are willing and able to buy.

• The quantity of something that producers have available for sale.

What is a subsidy?

• Government payment to encourage or protect a certain economic activity.

• Required payments to a government.

• The price at which the quantity demanded equals the quantity supplied.

• The quantity of something that producers have available for sale.

What are taxes?

• Required payments to a government.

• Government payment to encourage economic activity.

• The quantity of a good or service that consumers are willing and able to buy.

• Products or services that can be used in place of each other.

What is a surplus?

• A situation in which quantity demanded is greater than quantity supplied

• A situation in which quantity supplied is greater than quantity demanded

• A situation in which supply and demand are equal

• A situation in which there is no demand

What is a shortage?

• A situation in which quantity supplied is greater than quantity demanded

• A situation in which quantity demanded is greater than quantity supplied

• A situation in which supply and demand are equal

• A situation in which there is no supply

What does a supply curve represent?

• The relationship between price and quantity demanded

• The relationship between price and quantity supplied

• The relationship between demand and supply

• The relationship between price and equilibrium

What does a demand curve represent?

• The relationship between price and quantity demanded

• The relationship between price and quantity supplied

• The relationship between demand and supply

• The relationship between price and equilibrium

What is competitive pricing?

• Setting prices based on production costs

• Selling products at higher prices to increase profit

• Selling products at lower prices to lure customers away from rivals

• Setting prices based on government regulations

What happens to prices in a market experiencing a surplus?

• Prices increase

• Prices decrease

• Prices remain constant

• Prices fluctuate randomly