Chapter 4 Quiz ECON1110

A Price system is...

• a system where prices fixed

• a system where price can help predict future trends

• a system where supply and demand affect prices of goods and services

• a constantly changing system regarding banana cultivation

Voluntary Exchange can be described as which of the following

• Sale of a good

• Sale of a Service

• mutually agreed opon terms of trade within a price system

• Voluntary trade agreed upon by one party within a price system

Which of the following is not an example of a middle man

• Walmart

• Mail delivery

• Child selling lemonade

• Superstore

The equilibrium quantity decreases. When this decreases, this means that fewer goods or services in the market are being sold than before. This can happen primarily when

• consumer interest in a product decreases

• consumer interest in a product increases

• the products are being produced differently

• there are changes in technology

When resources are especially limited, demand outpaces supply, true or false?

• True

• False

which in not an example of rationing

• adjusting weight

• adjusting price

• waiting in a queue

• restrictions on quantity legal to purchase

Price Floor enforces what?

• Maximum price for a product

• Minimum Price for a product or service

• what material businesses must use to build their floor

• price of hardwood or tile flooring

In 2003, the average home price was 5.8 times the average Canadian’s earnings. What is it now?

• 7.5x

• 10.8x

• 8.5x

• 8.1x

The demand for housing in Canada is outpacing supply, true or false?

• True

• False

Which of the following does not affect change in demand?

• Price of Substitute goods

• consumer values

• Income/Earning

• Customer Preferences