Ch. 4 The Market Forces Of Supply And Demand By Katie Brannon

Front 1

The forces that make market economies work are

Back 1

Supply and Demand

Front 2

Which of the following are words most commonly used by economists?

Back 2

Supply and Demand

Front 3

Supply and Demand determine prices and, in turn, prices allocate scarce resources in a

Back 3

Market Economy

Front 4

In a market economy, supply and demand are important because they

Back 4

Play a critical role in the allocation of the economy's scarce resources;
Determine how much of each good gets produced;
Can be used to predict the impact on the economy of various events and policies

Front 5

A market is a

Back 5

Group of buyers and sellers of a particular good or service

Front 6

In a market, for a good or service to exist,

Back 6

There must be a group of buyers and sellers

Front 7

The term market always refers to

Back 7

A group of buyers and sellers of a particular good or service

Front 8

A group of buyers and sellers of a particular good or service is called a

Back 8

Market

Front 9

A market is always characterized by

Back 9

The presence of buyers and sellers

Front 10

Which of the following statements is correct?

Back 10

Buyers determine demand and sellers determine supply

Front 11

For each good produced in a market economy, the interaction of demand and supply determines

Back 11

Both the price of the good and the quantity of the good

Front 12

A competitive market is a market in which

Back 12

No individual buyer or seller has any significant impact on the market price

Front 13

The demand for a good or service is determined by

Back 13

Those who buy the good or service

Front 14

A competitive market is one in which

Back 14

There are so many buyers and so many sellers that each has a negligible impact on the price of the product

Front 15

In a competitive market

Back 15

Each seller has a limited degree of control over the price of his product

Front 16

In a competitive market, each seller has limited control over the price of his or her product because

Back 16

Other sellers are offering similar products

Front 17

Most markets in the economy are

Back 17

Highly competitive

Front 18

For a competitive market, which of the following statements is correct?

Back 18

If a seller charges more than the ongoing price, buyers will go elsewhere to make their purchases

Front 19

Assume Teresa buys computers in a competitive market. Then

Back 19

None of the above is correct

Front 20

The highest form of competition is called

Back 20

Perfect competition

Front 21

Which of the following is not a characteristic of a perfectly competitive market?

Back 21

Different sellers sell identical products
There are many sellers
Sellers must accept the price the market determines

Front 22

Which of the following is not a characteristic of a perfectly competitive market?

Back 22

Sellers possess market power

Front 23

The term price takers refers to buyers and sellers in

Back 23

Perfectly competitive markets

Front 24

Buyers and sellers who have no influence on market price are referred to as

Back 24

Price takers

Front 25

Price takers have no influence over prices in markets that feature

Back 25

Numerous buyers and numerous sellers