Podcast
Questions and Answers
What is the primary function of prices in a market economy?
What is the primary function of prices in a market economy?
- To stimulate economic growth
- To redistribute wealth from one group to another
- To guide economic decisions and allocate scarce resources (correct)
- To control the production of goods and services
Which of the following would cause a shift in the demand curve for hybrid cars?
Which of the following would cause a shift in the demand curve for hybrid cars?
- A decrease in the price of hybrid cars
- A decrease in the production cost of hybrid cars
- An increase in the price of gas (correct)
- A change in the design of hybrid cars
What is the result of a shift in the demand curve for hybrid cars, assuming no change in the supply curve?
What is the result of a shift in the demand curve for hybrid cars, assuming no change in the supply curve?
- A decrease in the price and quantity of hybrid cars
- An increase in the price and a decrease in the quantity of hybrid cars
- An increase in the price and quantity of hybrid cars (correct)
- A decrease in the price and an increase in the quantity of hybrid cars
What is the difference between a change in the quantity supplied and a change in supply?
What is the difference between a change in the quantity supplied and a change in supply?
What is the opportunity cost of choosing to buy a hybrid car?
What is the opportunity cost of choosing to buy a hybrid car?
What is the primary reason why people make rational decisions in a market economy?
What is the primary reason why people make rational decisions in a market economy?
What is the result of a trade-off in a market economy?
What is the result of a trade-off in a market economy?
What is the purpose of incentives in a market economy?
What is the purpose of incentives in a market economy?
What is the effect of an increase in the cost of producing hybrid cars on the supply curve?
What is the effect of an increase in the cost of producing hybrid cars on the supply curve?
What is the effect of a decrease in the price of gas on the demand curve for hybrid cars?
What is the effect of a decrease in the price of gas on the demand curve for hybrid cars?
