The Marketing Price System
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Questions and Answers

What does the price system in a market economy provide signals about?

  • How much money buyers and sellers should spend
  • What goods and services should not be produced
  • What goods and services should be produced (correct)
  • How much money buyers and sellers should make
  • Which of the following is an example of an economic shortage?

  • Water surplus
  • Water abundance
  • Water shortage (correct)
  • Water scarcity
  • Which of the following best describes a shortage?

  • When the quantity demanded and the quantity supplied of a good are unknown
  • When the quantity demanded of a good is greater than the quantity supplied (correct)
  • When the quantity demanded and the quantity supplied of a good are equal
  • When the quantity supplied of a good is greater than the quantity demanded
  • What are a few examples of common types of economic shortages?

    <p>Food shortages, power shortages, and labor shortages</p> Signup and view all the answers

    Which of the following best describes a surplus?

    <p>When producers make too many goods but consumers don't have the capacity to buy them</p> Signup and view all the answers

    What is a surplus?

    <p>An amount of goods that is more than is needed</p> Signup and view all the answers

    When does a surplus occur?

    <p>When producers make too many goods and consumers have the capacity to buy them</p> Signup and view all the answers

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