How are market prices set?

by the interaction of producers & consumers

When economists refer to “demand”, they mean which of the following?

how much consumers will purchase a different prices

Entrepreneurship and labor interact in which of the following ways?

Entrepreneurship makes decisions about the use of labor

A market economy has an advantage over a traditional economy in that the market economy

adjusts to consumer demands over time

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Microeconomics

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Unit 2 quiz

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Questions 15

Answers

1
Sharon decided to open a business. She hired one helper. What is a disad of business described?
unlimited liability
no separation of ownership and control
ease of organizing the firm
double taxation
2
What effect does a price floor have on the supply of a good?
results in a surplus
no effect
results in lowered demand
results in a shortage
3
When Ford and Chevrolet get together to set the prices of their vehicles, they are doing what?
Collusion
Supply
Incentive
Ceiling
4
How are market prices set?
by the interaction of producers & sellers
by the government
by the interaction of consumers & buyers
by the interaction of producers & consumers
5
The point where supply and demand intersect is referred to as
Price
Supply
Equilibrium
Quantity
6
Government places a price ceiling on diamonds, what would it create?
monopoly
shortage
surplus
price collusion
7
The minimum wage is a type of
marginal price
comparable worth
price ceiling
price floor
8
Interdependence & price leadership are characteristics of a firm in what market structure?
monopoly
oligopoly
monopolistic competition
perfect competition
9
When economists refer to “demand”, they mean which of the following?
how much consumers will purchase a different prices
how much sellers will supply at a particular price
how much people want the product if it is free
how much satisfaction buyers receive from a purchase
10
Entrepreneurship and labor interact in which of the following ways?
Labor makes decisions about the use of entrepreneurship
Entrepreneurship makes decisions about the use of labor
entrepreneurship & labor receive payment in form of interest
entrepreneurship & labor receive payments in form of rent
11
In which market structure does a firm have greatest control over its product’s price?
monopoly
oligopoly
perfect competition
monopolistic competition
12
Firm X has developed a new mechanical device. As the sole producer of this product, Firm X is
technological monopoly
natural monopoly
government monopoly
geographic monopoly
13
A market economy has an advantage over a traditional economy in that the market economy
limits the profits of large corporations
adjusts to consumer demands over time
controls all prices and all wages
fixes incomes of consumers to one level
14
What economic problem do both higher-income nations and lower-income nations have in common?
too much government
lack of capital goods
too many skilled workers
scarcity of resources
15
2. An example of a price ceiling is…..
rent control
taxes on imports
income tax
government prices on milk

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