Quick Quiz 1

The two words most often used by economists are

• prices and quantities

• resources and allocation

• supply and demand

• efficiency and equity

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

• coalition.

• economy

• market

• competition

Which of the following statements is correct?

• Buyers determine supply and sellers determine demand

• Buyers determine demand and sellers determine supply

• Buyers determine both demand and supply

• Sellers determine both demand and supply

The demand for a good or service is determined by

• those who buy the good or service

• the government

• those who sell the good or service

• both those who buy and those who sell the good or service

For a market for a good or service to exist,

• there must be a group of buyers and sellers

• there must be a specific time and place at which the good or service is traded

• there must be a high degree of organization present

• All of the above are correct

The market for ice cream is

• a monopolistic market

• a highly competitive market

• a highly organized market

• both (b) and (c) are correct

In a competitive market, the price of a product

• is determined by buyers and the quantity of the product produced is determined by sellers

• is determined by sellers and the quantity of the product produced is determined by buyers

• and the quantity of the product produced are both determined by sellers

• None of the above is correct

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

• Different sellers sell identical products

• There are many sellers

• Sellers must accept the price the market determines

• All of the above are characteristics of a perfectly competitive market

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

• market pawns

• monopolists

• price takers

• price makers

A monopoly is a market

• with one seller, and that seller is a price taker

• with one seller, and that seller sets the price

• with one buyer, and that buyer is a price taker

• with one buyer, and that buyer sets the price