Quiz Two Vocabulary

What does 'Supply' refer to in economics?

• The satisfaction a person gets from consuming a product

• The amount of a product or service that sellers are willing to offer

• The positive outcome of buying a product

• A market controlled by one company

What is the meaning of 'Demand'?

• The amount of a product buyers are willing to purchase at different prices

• The money spent to produce a product

• When the market doesn’t work efficiently

• An excess amount of a product

Which of the following is an example of 'Benefit'?

• A person gets excited after buying a new phone

• The advantage or benefit gained from something.

• The price of coffee increases in the market

• A factory sells more products than it produces

What does 'Utility' refer to in economics?

• The satisfaction or happiness a person gets from consuming a product or service

• The total cost of producing a good

• The number of products supplied to the market

• The benefit a company gets from selling its product

What happens when a market reaches 'Equilibrium'?

• Demand exceeds supply, causing prices to rise

• The amounts supplied equals the amount demanded

• There is no competition in the market

• A surplus of goods is created

What does a 'Surplus' indicate in a market?

• Prices are too low

• Supply is greater than demand

• There is a shortage of products

• The market is in perfect equilibrium

What does 'Cost' refer to in production?

• The total number of products available

• The amount of money or resources spent to produce a product

• The advantage of consuming a product

• The level of competition in the market

Which of these is a characteristic of a 'Monopoly'?

• Many companies sell similar products

• One company controls the entire market

• Several companies compete, but prices are stable

• The market works perfectly

What is an 'Oligopoly'?

• A market structure where a few large companies dominate

• A market with only one seller

• A situation where supply exceeds demand

• When companies reduce prices to gain market share

What is 'Market Failure'?

• When the market allocates resources perfectly

• When resources aren’t allocated efficiently, causing harm to society

• When demand and supply are balanced

• A temporary surplus in the market