10 Questions
Which one of the following best defines a firm in a market economy?
The primary producing units in a market economy
Which one of the following best defines a household in an economy?
The consuming units in an economy
What determines a household's decision about the quantity of a particular output to demand?
The price of the product in question
Which one of the following characteristics defines a competitive market?
Identical goods or services
What is the role of markets in facilitating transactions between buyers and sellers?
Completing transactions
Which one of the following best defines demand?
The amount of goods or services consumers are willing and able to purchase at each price
What is the role of an entrepreneur in a firm?
To organize, manage, and assume the risks of a firm
What determines a household's decision about the quantity of a particular output to demand?
The price of the product in question
Which one of the following is a characteristic of competitive markets?
Identical goods or services
What is the primary role of markets in an economy?
To facilitate the interaction of buyers and sellers
Test your knowledge on the basic decision-making units in microeconomics! This quiz covers topics such as firms, entrepreneurs, and households in relation to resource transformation, product creation, and consumption. Sharpen your understanding of demand analysis with this insightful quiz.
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