Quiz 2 Final Practise

What is 'Cost'?

• The satisfaction a person gets from a product

• The value of a company

• The benefit of buying a product

• The amount of money needed to produce or purchase something

Which of the following is true about a 'Monopoly'?

• The market works perfectly

• Many companies sell similar products

• One company controls the entire market

• Several companies compete, but prices are stable

What is an example of 'Market Failure'?

• A surplus of goods in a competitive market

• A situation where there is no competition

• A balanced market where supply equals demand

• A market where resources are not used efficiently, causing negative effects

What does 'Surplus' indicate in a market?

• There is a shortage of products

• Supply is greater than demand

• Prices are too low

• The market is in equilibrium

What does 'Supply' refer to in economics?

• A market controlled by one company

• The total amount of a product sellers are willing to offer

• The satisfaction a person gets from consuming a product

• The positive outcome of buying a product

When does a market reach 'Equilibrium'?

• When the supply of a product exceeds demand

• When a company controls the market

• When the demand for a product exceeds supply

• When the amount supplied equals the amount demanded

Which of the following is an example of 'Demand'?

• Consumers rush to buy the latest smartphone

• A store goes bankrupt due to financial constraints

• A bakery has leftover bread at the end of the day

• A company is bought by another company

What does 'Benefit' refer to?

• The positive outcome of a product or service

• The amount of money spent on a product

• The price of producing a product

• The amount of a product available for sale

What is an 'Oligopoly'?

• A situation where supply exceeds demand

• A market with only one seller

• A market structure where a few large companies dominate

• When companies reduce prices to gain market share

How is 'Utility' defined in economics?

• The amount of money spent on production

• The happiness or satisfaction a person gets from consuming a product

• The cost of producing a good

• The total number of products available