Podcast
Questions and Answers
What is a competitive market?
What is a competitive market?
- A market with only one buyer and one seller
- A market with many buyers and many sellers (correct)
- A market with no sellers
- A market with a fixed price
What is the relative price of a good?
What is the relative price of a good?
- The ratio of its money price to the money price of the next best alternative good (correct)
- The total cost of production
- The amount of money needed to buy it
- The profit of the seller
What are the three conditions for demanding something?
What are the three conditions for demanding something?
- Need it, can afford it, and can produce it
- Want it, need it, and can produce it
- Want it, can afford it, and have made a definite plan to buy it (correct)
- Want it, need it, and can sell it
What is the main tool of economics that explains how prices are determined and how they guide the use of resources?
What is the main tool of economics that explains how prices are determined and how they guide the use of resources?
What is the money price of a good?
What is the money price of a good?
Why do prices of goods and services rise and fall?
Why do prices of goods and services rise and fall?
What happens to the supply curve when there is an advance in technology?
What happens to the supply curve when there is an advance in technology?
What is the situation in which the quantity demanded equals the quantity supplied?
What is the situation in which the quantity demanded equals the quantity supplied?
What is the result of a natural disaster on the supply curve?
What is the result of a natural disaster on the supply curve?
What is the purpose of price in a market?
What is the purpose of price in a market?
What happens to the supply curve when the price of the good changes?
What happens to the supply curve when the price of the good changes?
What is the equilibrium quantity?
What is the equilibrium quantity?
What happens when the price of a good is above the equilibrium price?
What happens when the price of a good is above the equilibrium price?
What is the result of an increase in demand?
What is the result of an increase in demand?
What happens when the quantity supplied equals the quantity demanded?
What happens when the quantity supplied equals the quantity demanded?
What is the result of a surplus of a good in the market?
What is the result of a surplus of a good in the market?
What occurs when the price of a good is below the equilibrium price?
What occurs when the price of a good is below the equilibrium price?
What is the state of the market when the quantity supplied equals the quantity demanded?
What is the state of the market when the quantity supplied equals the quantity demanded?
