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Social Studies
10th
grade
2.2 The role of markets in allocating resources
37 questions
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- 1. Multiple Choice
Which is not a basic principle of a market system
competition
voluntary exchange
socialism
self-interest
- 2. Multiple Choice
Which of the following does not follow with the basic principles of market systems?
People are driven by their desire to make a profit
competition is discouraged
people feel best when they freely trade for what they want
innovation is encouraged
- 3. Multiple ChoicePrivate property rightsShould not be enforced by the governmentAre protected under the constitutionDo not exist in capitalist marketsAre optional for success in the market
- 4. Multiple Choice
What is a benefit of the market system?
Competition ensures choice for consumers.
Prices equal supply costs
Unemployment is kept to a minimum
Wage differentials are small
- 5. Multiple Choice
What is an advantage of a market economy?
an absence of poverty
consumer sovereignty
full employment
firms have monopoly power
- 6. Multiple Choice
In a market system, what encourages firms to keep their costs low?
competition
subsidies
taxation
rules and regulations
- 7. Multiple Choice
What encourages firms to produce what consumers demand?
the desire to keep revenue low
the chance to make high profit
the chance to keep cost of production high
the desire to attract firms in the industry
- 8. Multiple Choice
Who decide what to produce, how to produce and for whom to produce?
government
producers
consumers
producers and consumers
- 9. Multiple Choice
In a market economy, there is limited government intervention.
True
False
- 10. Multiple Choice
A market economic system is one where resources are owned and controlled by private sector
False
True
- 11. Multiple ChoiceWhat is the Equilibrium Price?1234
- 12. Multiple ChoiceWhat is the Equilibrium Quantity?50607080
- 13. Multiple Choice
When quantity supplied is smaller than quantity demanded, you have a ____________.
shortage
surplus
deficit
equilibrium
- 14. Multiple Choice
Point at which supply and demand curve intersect each other
price ceiling
excess demand
equilibrium
disequilibrium
- 15. Multiple Choice
Define market equilibrium
Where quantity demanded is less than quantity supplied
Where quantity demanded is greater than quantity supplied
Where quantity demanded is equal to quantity supplied
- 16. Multiple Choice
Define a shortage
Where quantity demanded is less than quantity supplied
Where quantity demanded is greater than quantity supplied
Where quantity demanded is equal to quantity supplied
- 17. Multiple Choice
Define a surplus
Where quantity demanded is less than quantity supplied
Where quantity demanded is greater than quantity supplied
Where quantity demanded is equal to quantity supplied
- 18. Multiple Choice
Which statement below would be the most correct to describe the equilibrium price?
$600
$600 per month
$500 per month
$700
- 19. Multiple Choice
Which statement below would be the most correct to describe the equilibrium quantity ?
15 rental houses
15000
15000 rental houses
15
- 20. Multiple Choice
If the current price is $800, which of the following would be the best description for the situation that exists in the market
There is a shortage of 12 houses
There is a shortage of 12000 houses
There is a surplus of 12
There is a surplus of 12000 houses
- 21. Multiple Choice
If the current price is $300, which of the following would be the best description for the situation that exists in the market
There is a shortage of 18 houses
There is a shortage of 18000 houses
There is a surplus of 18
There is a surplus of 18000 houses
- 22. Multiple Choice
If the current price is $800, how will market equilibrium be restored?
Consumers will bid up the price
Producers will lower the price
The price will not change
- 23. Multiple Choice
If the current price is $300, how would market equilibrium be restored?
Consumers will bid up the price
Producers will lower the price
The price will not change
- 24. Multiple Choice
If the current price is $300, how many houses will be sold ?
6000 houses
24000 houses
15000 houses
- 25. Multiple Choice
If the current price is $800, how many houses will be sold?
24000 houses
9000 houses
15000 houses
- 26. Multiple Choice
A service is .....
something someone does for you.
something someone makes.
something someone creates.
something you find in a store.
- 27. Multiple Choice
A good is......
something you buy.
something you need or want.
something you use or consume.
All of the above
- 28. Multiple Choice
When goods, services or resources are scarce, sometimes the cost of that good or service goes up and it becomes expensive. We call this allocation by ....
lottery.
sharing.
price.
contest.
- 29. Multiple Choice
When goods or services are hard to get or find, we say they are......
easy.
scarce.
empty.
plentiful.
- 30. Multiple Choice
When goods, services or resources are scarce, decisions have to be made about who will have them first. We call this process.......
allocation.
consumers.
producers.
economics.
- 31. Multiple Choice
Sometimes when goods or services are scare people divide things out so that everyone who wants or needs it gets a little bit. We call this method of allocation......
personal characteristics.
a contest.
first come, first served.
sharing.
- 32. Multiple Choice
Sometimes, the person, or people in charge must make decisions about how goods, services or resources should be allocated. This is call allocation by....
majority rule.
personal characteristics.
authority.
a contest.
- 33. Multiple Choice
A resource is.....
something that you ride at Six Flags.
something that is available for use, or that can be used for support or help.
something that copies papers.
something you find in the car.
- 34. Multiple Choice
Price of a good increases will result in
demand falls
supply rises
quantity demanded falls
quantity demanded rises
quantity supplied rises
- 35. Multiple Choice
What happens to the market of Coke, when price of Pepsi increases?
Quantity demanded of Coke rises
Quantity demanded of Coke falls
Demand for Coke rises
Supply for Coke rises
- 36. Multiple Choice
Supply of a good increases will result in
Fall in equilibrium price and Fall in equilibrium quantity
Fall in equilibrium price and Rise in equilibrium quantity
Rise in equilibrium price and Fall in equilibrium quantity
Rise in equilibrium price and Rise in equilibrium quantity
- 37. Multiple Choice
When both demand and supply decreases, which one is NOT a possible outcome?
Equilibrium quantity falls
Equilibrium quantity rises
Equilibrium price falls
Equilibrium price rises
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