Decisions in a Market Economy

Question 1

Scarce means

Accepted Answer

limited

Question 2

The number of seller offering a specific product in a specific area does not affect the price.

Accepted Answer

False

Question 3

Producers AND consumers both

Accepted Answer

want to profit from the sale

Question 4

A person who purchses goods or services

Accepted Answer

consumer

Question 5

When the value of money declines, causing goods and services become more expensive

Accepted Answer

Inflation

Question 6

Scarcity leads to choices for the manufacturer because it affects what he/she will

Accepted Answer

produce

Question 7

The most probable type of economy shown in this picture is

Accepted Answer

market economy

Question 8

Another word for "opportunity cost" is

Accepted Answer

tradeoff

Question 9

Scarcity leads to choices for the CONSUMER because it affects what you will

Accepted Answer

buy

Question 10

Why would a producer raise the cost of a product?

Accepted Answer

limited supply

Question 11

An estimate of income and expenditure for a set period of time that a family may make is a

Accepted Answer

budget.

Question 12

A basic need is

Accepted Answer

water

Question 13

If price rises and the consumer's income remains the same, the consumer will probably

Accepted Answer

not buy the item

Question 14

The most probable type of economy shown in this picture is

Accepted Answer

traditional economy

Question 15

Consumers in a market economy pay with ___.

Accepted Answer

currency

Question 16

The most probable type of economy shown in this picture is

Accepted Answer

market economy

Question 17

Command economies discourage innovation and prevent monopolies because

Accepted Answer

the government tells producers what to make

Question 18

A wise consumer will ____ shop

Accepted Answer

comparison

Question 19

The most probable type of economy shown in this picture is

Accepted Answer

command economy

Question 20

Payment of green beans in return for the veterinarian seeing your dog is

Accepted Answer

bartering

Question 21

How do producers make choices about what to sell? Choices are based on

Accepted Answer

the consumers' decisions

Question 22

This purchase is a "service" that is purchased

Accepted Answer

cable tv

Question 23

Individuals make their own economic choices in a

Accepted Answer

market economy

Question 24

The most probable type of economy shown in this picture is

Accepted Answer

traditional economy

Question 25

An economy in which an individual is free to choose among many suppliers

Accepted Answer

market economy

Question 26

Producer= high profit.Raises the price.Consumers continue to buy.Producer continues high price.

Accepted Answer

profit incentive concept

Question 27

What is accociated with real income?

Accepted Answer

the actual cost of goods & services

Question 28

The most probable type of economy shown in this picture is

Accepted Answer

command economy

Question 29

Which are considered "goods" (as opposed to a "service")?

Accepted Answer

cakes

Question 30

Which is a service?

Accepted Answer

house painting

Question 31

Choosing candy at snack time rather than saving for the thing-a-ma-bob you wanted causes an

Accepted Answer

opportunity cost

Question 32

Rivalry among sellers trying to achieve increasing profits, market share, & sales volume is

Accepted Answer

competition.

Question 33

Income of individuals or nations after adjusting for inflation is called __

Accepted Answer

real income

Question 34

When the government tells producers what and how much to produce

Accepted Answer

command economy

Question 35

When there's not much or many of a certain item

Accepted Answer

scarcity

Question 36

Consumers will pay a higher price for something in short supply. This is the law of

Accepted Answer

supply & demand

Question 37

The most probable type of economy shown in this picture is

Accepted Answer

traditional economy

Question 38

An economy in which individuals can trade established currency freely for needed goods

Accepted Answer

market economy

Question 39

In order to make appropriate economic choices, you must

Accepted Answer

consider all available resources

Question 40

If the cost of leather goes up considerably, the cost of a sofa and chairs will probably

Accepted Answer

go up

Question 41

One choice a seller can make in order to stay competitive is to

Accepted Answer

lower prices

Decisions in a Market Economy

Questions 41

Decisions in a Market Economy

Questions 41