Podcast
Questions and Answers
What is the market price determined by?
What is the market price determined by?
- Supply only
- Government intervention
- Both supply and demand (correct)
- Demand only
What is a characteristic of perfect competition in a free market?
What is a characteristic of perfect competition in a free market?
- Many companies compete with each other (correct)
- The government owns all businesses
- There is no competition
- A single company dominates the market
What is a benefit of free markets?
What is a benefit of free markets?
- Opportunities for poor people to work their way out of poverty (correct)
- Government ownership of businesses
- Limited job opportunities
- High taxes on citizens
What happens when the supply and demand curves intersect?
What happens when the supply and demand curves intersect?
What is a limitation of free markets?
What is a limitation of free markets?
What is the main difference between free markets and socialism?
What is the main difference between free markets and socialism?
What is one of the basic rights in a free-market capitalist system?
What is one of the basic rights in a free-market capitalist system?
In a free market, what determines how much of a product to produce?
In a free market, what determines how much of a product to produce?
What is the term for the quantity of products that manufacturers are willing to sell at different prices?
What is the term for the quantity of products that manufacturers are willing to sell at different prices?
What is the main function of prices in a free market?
What is the main function of prices in a free market?
What is the name of the model that illustrates the flow of resources and goods in a free market?
What is the name of the model that illustrates the flow of resources and goods in a free market?
What happens to the quantity demanded when the price of a product increases?
What happens to the quantity demanded when the price of a product increases?
What is a situation in which prices are declining?
What is a situation in which prices are declining?
What is an index that measures the change in prices at the wholesale level?
What is an index that measures the change in prices at the wholesale level?
What is a severe recession, usually accompanied by deflation?
What is a severe recession, usually accompanied by deflation?
What is the federal government’s effort to keep the economy stable by increasing or decreasing taxes or government spending?
What is the federal government’s effort to keep the economy stable by increasing or decreasing taxes or government spending?
What is the amount of money the federal government spends beyond what it collects in taxes for a given fiscal year?
What is the amount of money the federal government spends beyond what it collects in taxes for a given fiscal year?
What are the periodic rises and falls that occur in economies over time?
What are the periodic rises and falls that occur in economies over time?
