Civics Chapter 16 Lesson 3

When the price of a good is low,

• firms supply more of it.

• people demand less of it.

• people demand more of it.

• people supply more of it.

On a graph, demand is shown

• as a downward sloping line.

• as a horizontal line.

• as an upward sloping line.

• as a vertical line.

To be efficient, markets must

• exist only on the Internet.

• have a single buyer and seller.

• have many competing buyers and sellers.

• limit the amount of products for sale.

The point where supply and demand curves meet is

• the disequilibrium price.

• the equilibrium price.

• the shortage price.

• the surplus price.

Which of these would cause the supply curve to shift to the right?

• a decrease in consumer income

• an increase in the cost of production

• a decrease in the number of suppliers

• new technology

In a market economy, prices act as signals to both consumers and producers.

• true

• false

Consumers are the people or businesses that buy goods and services.

• true

• false

In economics, demand means all of the people who want a certain good or service.

• true

• false

The demand curve shifts to the left when more consumers enter the market.

• true

• false

In a market economy, dollars are like votes for the goods or services wanted.

• true

• false