Study Guide and Quiz

Question 1

If your company uses a nonprice competition strategy, what should you focus on?

Revolt · Accepted Answer

Differentiation

Question 2

In a planned economy, prices of commodities are controlled by _________.

Revolt · Accepted Answer

The government

Question 3

A market economy is regulated by the interactions between which two things?

Revolt · Accepted Answer

Producers and consumers

Question 4

If consumers start to believe they need a product, what is likely to happen?

Revolt · Accepted Answer

The demand becomes less elastic.

Question 5

Which of the following commodities is a good?

Revolt · Accepted Answer

A desk

Question 6

Which of the following is a sign of a strong economy?

Revolt · Accepted Answer

An increase in GDP

Question 7

In capitalism, what does competition do for consumers?

Revolt · Accepted Answer

It keeps prices fair for consumers.

Question 8

A producer is someone who _____________.

Revolt · Accepted Answer

Makes a commodity available for sale or exchange

Question 9

What is an increase in competition likely to do to the demand?

Revolt · Accepted Answer

Make the demand more elastic

Question 10

What is likely to happen if the price of a product goes up?

Revolt · Accepted Answer

The supply is likely to increase.

Study Guide and Quiz Answers