How Prices Work

If a price floor was set at 320, what quantity would be purchased?

• 20

• 40

• 60

• 80

When there is rise in prices due to lack of supply, meaning that the dollar "doesn't buy what it used to" there is __

• inflation

• deflation

• unemployment

• a conspiracy

Because there is too many people willing to buy homes in Southern California, housing prices continue to rise. This is called __

• cost push inflation

• structural unemployment

• demand pull inflation

• supple and demand

When a company has to pay workers higher wages, it can lead to a rise in prices for their product. This is known as __

• demand pull inflation

• wage price spiral

• cyclical unemployment

• deflation

Businesses can "Collude" or work together to set prices

• Oligopoly

• Monopoly

• Perfect Competition

The rising in the general level of prices and it reduces the "purchasing power" of money

• Inflation

• Price Indices

• Real Wage

• Inflation Rate

What is the economic term for a situation where the price of goods and services increases over time, reducing the purchasing power of money?

• Inflation

• Deflation

• Stagflation

• Recession

When a single company dominates a market and can set prices without competition, this is known as a __

• Monopoly

• Oligopoly

• Perfect Competition

• Monopsony

If the government sets a minimum price for a product above the equilibrium price, it is called a __

• Price Floor

• Price Ceiling

• Subsidy

• Tax

What is it called when the demand for a product increases, leading to higher prices, due to consumers having more money to spend?

• Demand-Pull Inflation

• Cost-Push Inflation

• Deflation

• Hyperinflation