Untitled Quiz

The forces that make market economies work are

• work and leisure.

• politics and religion.

• supply and demand.

• taxes and government spending.

In a market economy, supply and demand determine

• both the quantity of each good produced and the price at which it is sold.

• the quantity of each good produced, but not the price at which it is sold.

• the price at which each good is sold, but not the quantity of each good produced.

• neither the quantity of each good produced nor the price at which it is sold.

In a market economy, supply and demand are important because they

• play a critical role in the allocation of the economy’s scarce resources.

• determine how much of each good gets produced.

• can be used to predict the impact on the economy of various events and policies.

• All of the above are correct.

In a market economy,

• supply determines demand and demand, in turn, determines prices.

• demand determines supply and supply, in turn, determines prices.

• the allocation of scarce resources determines prices and prices, in turn, determine supply and demand.

• supply and demand determine prices and prices, in turn, allocate the economy’s scarce resources.

A group of buyers and sellers of a particular good or service is called a(n)

• coalition.

• economy.

• market.

• competition.

Which of the following statements is correct?

• Buyers determine supply and sellers determine demand.

• Buyers determine demand and sellers determine supply.

• Buyers determine both demand and supply.

• Sellers determine both demand and supply.

The demand for a good or service is determined by

• those who buy the good or service.

• the government.

• those who sell the good or service.

• both those who buy and those who sell the good or service.

The supply of a good or service is determined by

• those who buy the good or service.

• the government.

• those who sell the good or service.

• both those who buy and those who sell the good or service.

For a market for a good or service to exist,

• there must be a group of buyers and sellers.

• there must be a specific time and place at which the good or service is traded.

• there must be a high degree of organization present.

• All of the above are correct.

Which of the following is an example of a market?

• a gas station

• a garage sale

• a barber shop

• All of the above are examples of markets.