Units 6+7: Markets and Money Review

What defines the nature of economic freedom, distributes goods and services fairly, and determines the amounts of goods and services producers should offer and the prices they should offer them at?

(a)  

Which is a Capital Good?

• Head of Lettuce

• A Toy Doll

• A Printing Press

• A Dollar Bill

As prices tend to rise, supply will tend to (rise or fall)?

(a)  

As prices rise demand tends to (rise or fall)?

(a)  

When supply is high but demand is low it is called:

(a)  

When demand is high but supply is low it is called:

(a)  

The law of supply and demand states that price will try to find a balance between the two, otherwise known as what?

(a)  

A producer who has enough influence in the market to have an impact on what price is charged for a product is called a

(a)  

Which of the following is a price-taker?

• Producer of Limousines and Luxury Vehicles

• Producer of Milk

• Producer of Fancy French Perfume

• Producer of Designer Hand Bags

The measure of how much supply or demand changes as a result of changes in other factors, such as price.

(a)