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Market Economy
Market Economy
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Circular flow model shows how goods and service move through a market economy
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Questions
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Answers
1
What needs to flow through the circular flow model of a market economy?
money
production
people
consumers
2
A fee that is charged by a government on a product, income or activity.
consumer
supply
tax
demand
3
A worker who starts out making 4 tennis rackets per hour but now make 20 per hour shows:
increased demand
increased profit
increased economic activity
increased productivity
4
The demand is the quantity of a good or service that consumers are willing to
buy
sell
produce
recall
5
You buy a shirt at the store. The total is 6% higher than you thought it would be. This is the
demand
supply
sales tax
property tax
6
If people discover that apples can be made into fuel for cars, which two will INCREASE:
demand and price
supply and fuel
demand and supply
supply and price
7
If a larger portion of the apple crop is destroyed, apple growers who have apples will likely
give money to the competition
raise their prices
have a sale
lower their prices
8
A person who owns a house must pay
tax
sales tax
property tax
income tax
9
The following picture is an example of
circular flow model
circular goods model
circular geography
circular supply model
10
If a dangerous pesticide is found on apples, the apple growers of this apple will likely:
lower the price
destroy the apples
increase the price
increase the supply
11
An early frost kills many lemons in Florida. At your lemonade stand this year, prices will be:
higher
lower
the same as last year
doesn't matter
12
The amount of money left over after you pay for all of your production costs is the
demand
production
profit
supply
13
When the supply increases due to more apples on the market, the price
will not matter
will decrease
will stay the same
will increase
14
Consumers demand less at higher pricesand more at lower prices is the law of
government
goods and services
markets and money
supply and demand
15
Producers supply less at lower pricesand more at higher prices is also known as the law of
goods and services
factors of production
supply and demand
consumers and producers
16
Research discovers anew dwarf apple tree that is stronger and producesmore apples. Supply will
stay the same
drop
decrease
increase
17
You had a paper airplane company. The other paper airplane companies were your:
competition
demand
loss
profit
18
You get your paycheck, and notice that it is less than you thought. You paid an:
sales tax
property tax
consumer
income tax
19
The supply is the quantity of a good or service that a company is able to
recall
sell
buy
produce
20
Which country are we most familiar with that uses the market economy?
United States
Russia
Korea
Antarctica