MBE Unit 3 Part 1

What does 'Scarcity' refer to in economics?

• When there is not enough of a good or service to meet demand

• When there is too much of a good or service

• When the demand for a good or service is equal to the supply

• When a new product is introduced to the market

What is a 'Market Economy'?

• An economic system that does not allow private businesses

• An economic system where suppliers and consumers control production and price

• An economic system based solely on agriculture

• An economic system where the government controls production and price

What does 'Capitalism' refer to?

• Also known as free-market or free-enterprise economic system

• Also known as command economic system

• An economic system where trade is controlled by feudal lords

• An economic system with no competition

What is 'Demand'?

• The quantity of goods a business is willing to sell

• The desire and ability to purchase a good or service

• The total amount of goods available in the market

• The price at which a good is sold

What is a 'Surplus'?

• Occurs when demand exceeds supply

• Occurs when supply and demand are equal

• Occurs when supply exceeds demand

• Occurs when a new market emerges

What is 'Equilibrium Price'?

• Price at which supply and demand curves intersect

• The lowest price a good can be sold for

• The average price of goods in a market

• The highest price a good can be sold for

What is a 'Mixed Economy'?

• An economy based on digital currencies

• An economy where trade is restricted to local goods

• Combination of command and market economies

• An economy with no government intervention

What is 'Supply'?

• The total amount of money in circulation

• The number of consumers in the market

• The quantity of goods and services a business is willing to sell at a specific price

• The desire to purchase goods and services

What does 'Voluntary Exchange' mean?

• Trade between two countries

• Transaction where both suppliers and consumers benefit

• A forced trade between two parties

• Exchange of goods without using money

What is a 'Command Economy'?

• Economic system in which the government controls prices, ownership, and property

• An economy where all businesses are owned by their employees

• A free-market economy

• An economy based on agricultural trade