Economics Quiz

A substitute good increases in price. How would this affect the other the good that could take its place?

• The supply of the other good would remain unchanged.
• The price of the other good would also increase.
• The demand for the other good would decrease.
• The demand for the other good would increase.

Where would a transaction take place in the product market in the circular flow model?

• product market
• revenue

• households

• firms

motivates individuals, businesses, and/or governments to undertake an action or avoid an action

• incentives
• households

• supply and demand

• factors of production

Government Regulations affect _______

• supply
• demand

• no change

If more sellers enter into a market, this will affect ____ curve.

in a supply and demand graph, if the demand curve shifts to the left what happens to price

A type of market typically produces vegetables is best known as _______.

• Monopoly
• Perfect competition
• Oligopoly
• Monopolistic competition

The best definition for demand is

• the total amount of money a consumer has to spend
• the number of products available in the market
• the quantity of a product or service that consumers are willing and able to buy at various prices.

• the price at which a product is sold

A corporation is LEAST LIKELY to have which advantage?

• High capital investment
• Access to global markets
• Personal relationships and flexibility
• Limited liability protection

A good that is bought and used with another good

• complement

• substitute

• excise tax

• subsidy