Cycle #4 Quizs

When more sellers enter the market, what happens to the supply?

• It decreases

• It remains the same

• It increases

• It becomes zero

In the era of film cameras, what happened to the demand for film when the price of cameras increased?

• Demand for film increased

• Demand for film decreased

• Demand for film remained the same

• Demand for film fluctuated

What is the primary purpose of a price floor in a market?

• To ensure consumers pay the lowest possible price

• To ensure producers receive a minimum price for their goods

• To increase the supply of goods

• To decrease the demand for goods

According to economists, how many American jobs were predicted to be moved overseas by the year 2015?

• 1.5 million

• 2.5 million

• 3.3 million

• 4.3 million

What is one likely result of competition among buyers in a market economy?

• Decreased prices

• Increased prices

• Stable prices

• Elimination of competition

What effect does competition among sellers have on prices?

• It forces sellers to raise their prices

• It forces sellers to lower their prices

• It has no effect on prices

• It stabilizes prices

What is a possible market strategy for a company with an excess supply of products or services?

• Increase the price to reduce demand

• Lower the amount of product available and decrease the price

• Stop production entirely

• Increase advertising without changing the price

What is one role of profit in a market economy?

• To reduce consumer spending.

• To help a business build additional production facilities.

• To decrease competition among businesses.

• To lower the cost of raw materials.

What happens to the equilibrium price when buyers demand less of previous phone models than newer models?

• It increases

• It decreases

• It remains the same

• It fluctuates unpredictably

What must buyers be in order to create increased demand for a product?

• Willing and able to purchase it

• Only willing to purchase it

• Only able to purchase it

• Neither willing nor able to purchase it