G12 Social Studies Quiz Review

What is price?

• The amount of money needed to buy something

• The quality of a product

• The amount of a product available

• The size of a product

Why are prices important for consumers?

• They create products

• They act as signals to decide what is affordable

• They make products more expensive

• They reduce the quality of products

What happens if the price of a product increases?

• More people will buy it

• Fewer people will buy it

• It will be free

• It will become illegal

High prices encourage producers to:

• Make less

• Make more

• Stop production

• Lower quality

What is rationing?

• Letting prices decide resource allocation

• Government controlling distribution

• Selling products illegally

• Making products free

What is one problem with rationing?

• It increases profits

• It leads to black markets

• It improves quality

• It reduces waste

What do high administrative costs refer to?

• Low production

• Increased paperwork and monitoring

• Better efficiency

• Reduced competition

What do prices help balance?

• Government rules

• Supply and demand

• Technology

• Advertising

When demand increases, prices usually:

• Decrease

• Stay the same

• Increase

• Become free

What is neutrality in the price system?

• Favoring buyers

• Favoring sellers

• Fair competition

• Controlling prices