#2 Understanding Economic Concepts Quiz

What is the equilibrium price in a market?

• The price at which supply exceeds demand

• The price at which demand exceeds supply

• The price at which supply equals demand

• The price set by the government

Which of the following best describes the law of supply?

• As price increases, supply decreases

• As price decreases, supply increases

• As price increases, supply increases

• Supply is independent of price

What is a monopoly in market structure?

• A market with many sellers and one buyer

• A market with one seller and many buyers

• A market with many sellers and many buyers

• A market with no sellers

Which of the following is a type of business ownership?

• Monopoly

• Partnership

• Supply chain

• Demand curve

What happens to the equilibrium price if demand increases while supply remains constant?

• The equilibrium price decreases

• The equilibrium price remains the same

• The equilibrium price increases

• The equilibrium price becomes zero

Which of the following is NOT a factor that affects supply?

• Production costs

• Consumer preferences

• Technology

• Number of sellers

What is the primary characteristic of a free enterprise system?

• Government control of all businesses

• Businesses are owned by the state

• Private ownership of businesses

• No competition among businesses

In the context of global economy, what does "global interdependence" mean?

• Countries are completely independent in their economies

• Countries rely on each other for goods and services

• Countries do not trade with each other

• Countries have identical economic systems

What is the effect of technology on jobs in the global economy?

• It decreases the need for skilled workers

• It has no effect on jobs

• It creates new job opportunities

• It only affects jobs in the technology sector

Which of the following is an example of a market structure?

• Circular flow

• Monopoly

• Global trade

• Interest rates