1. Which of the following responses best defines the term demand? (1 point)
the willingness and ability of buyers to purchase a product, good, or service
a want and need felt by the consuming public in a free-market system
an inner desire that must be satisfied
an order given to a supplier of a much-needed product
2. The law of demand maintains that buyers will purchase (demand) more of a product as its price (1 point)
drops.
rises.
fits a person's personal planning budget.
tends to stay the same.
3. Louie discovered that when he dropped the price of his paintings, more people were interested in buying. Louie is experiencing ________. (1 point)
mercantilism
market price variations
the law of supply
the law of demand
4. When the price at which the quantity of a product willing to be purchased by customers and the quantity of product willing to be made by a producer are equal, this is known as (1 point)
the break-even price.
the market price.
the equilibrium price.
either the market price or the equilibrium price.
5. Which of the following best defines the term business cycle? (1 point)
the total quantity of goods and services produced by an economic system during a given period
the measure of economic growth that compares how much a system produces with the resources needed to produce it
the pattern of short-term ups and downs in an economy
the total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system
6. In a(n) ________ economy, the price of apples will be determined by supply and demand. (1 point)
ownership
planned
market
essential
7. In a market economy, the factors of production are allocated by (1 point)
the federal government.
state commerce departments.
producers and consumers.
available natural resources.
8. ________ includes the physical and intellectual contributions people make while working. (1 point)
Capital
Government
Entrepreneurship
Labor
9. When identifying the factors of production, the term ________ may also be used to refer to labor. (1 point)
human resources
contract resources
production resources
management resources
10. In a market characterized by ________, all firms must be small and the number of firms in the industry must be large. (1 point)
oligopoly
stable competition
monopolistic competition
perfect competition
pls someone help
1. A
2. C
3. A
4. D
5. C
6. C
7. A
8. D
9. D
10. D
I have not done the test yet
1. The correct answer is: the willingness and ability of buyers to purchase a product, good, or service.
To determine this answer, you can look at the different options and assess which one best describes the term "demand." Demand refers to the combination of willingness and ability of buyers to purchase a product, good, or service. It is not just a want or need felt by consumers, but also the ability to actually purchase the product. It is also not specifically an order given to a supplier, as demand comes from the buyers and not the sellers.
2. The correct answer is: drops.
To determine this answer, you can analyze the statement and understand the concept of the law of demand. The law of demand states that as the price of a product drops, buyers will demand (purchase) more of it. This is because the lower price makes the product more affordable and attractive to buyers. Conversely, if the price rises, buyers will demand less of the product.
3. The correct answer is: the law of demand.
To determine this answer, you can analyze the situation described. Louie noticed that when he dropped the price of his paintings, more people became interested in buying them. This aligns with the law of demand, which states that as the price decreases, the quantity demanded increases. Therefore, Louie is experiencing the law of demand in action.
4. The correct answer is: the equilibrium price.
To determine this answer, you can understand the concept of the equilibrium price. The equilibrium price is the price at which the quantity of a product that buyers are willing to purchase is equal to the quantity of the product that producers are willing to make. It is the point where supply and demand meet and are in balance. This is the price where the market clears, and there is neither excess supply nor excess demand.
5. The correct answer is: the pattern of short-term ups and downs in an economy.
To determine this answer, you can analyze the different options and assess which one best defines the term "business cycle". The business cycle refers to the pattern of short-term ups and downs in an economy. It represents the fluctuations in economic activity, including periods of growth (expansion) and periods of contraction (recession). It is a recurring pattern that affects various aspects of the economy, such as employment, production, and spending.
6. The correct answer is: market.
To determine this answer, you can look at the different options and assess which one best fits the description. In a market economy, the price of goods, such as apples, is determined by the forces of supply and demand. The price of apples will fluctuate based on the interaction between the quantity of apples supplied by producers and the quantity demanded by consumers in the market.
7. The correct answer is: producers and consumers.
To determine this answer, you can analyze the options and understand how factors of production are allocated in a market economy. In a market economy, the factors of production (such as land, labor, capital, and entrepreneurship) are allocated by the producers and consumers themselves. This is through the interactions of buying and selling, supply and demand, and the pursuit of profit.
8. The correct answer is: Labor.
To determine this answer, you can look at the options and assess which one includes the physical and intellectual contributions made by people while working. Labor refers to the human effort and skill involved in the production of goods and services. It includes the physical and intellectual contributions of workers.
9. The correct answer is: human resources.
To determine this answer, you can look at the options and assess which one can be used interchangeably with the term "labor" when referring to the factors of production. "Human resources" is another term commonly used to refer to the labor factor of production. It refers to the workforce or the human element involved in the production process.
10. The correct answer is: perfect competition.
To determine this answer, you can analyze the options and understand the characteristics of the different types of market structures. In a perfect competition market, there are many buyers and sellers, and no single firm has control over the market. This means that all firms must be small and the number of firms in the industry must be large. Perfect competition is characterized by low barriers to entry, identical products, and a lack of market power for individual firms.