Macroeconomics Pre-Test

Front

What happens when supply exceeds demand in a market?

Back

Surplus

Front

Which term describes the value added when a product is available where it’s needed?

Back

Place Utility

Front

Which of these market structures has the most competition?
Options: Monopoly, Perfect Competition, Oligopoly, Monopolistic Competition

Back

Perfect Competition

Front

When prices rise significantly due to a shortage, this is an example of:

Back

Supply and demand interaction

Front

Which of the following best describes entrepreneurship? Options: The process of making products more valuable, Managing market competition, Starting and running a business with innovation and risk, Allocating resources to maximize income

Back

Starting and running a business with innovation and risk

Front

If a company raises prices and customers continue to buy the product, the demand is:

Back

Inelastic

Front

What is the purpose of a cost-benefit analysis?

Back

To compare costs and benefits of a decision

Front

A farmer sells tomatoes in a highly competitive market with many other sellers. What happens if all sellers lower their prices?

Back

The market will move toward equilibrium.

Front

How do monopolies typically impact prices and production?

Back

Set higher prices and limit production

Front

What happens at market equilibrium?

Back

Supply and demand are balanced