Markets Quiz

Markets are BEST defined by...

• size.
• geographic location.
• price limits.
• common interests of buyers and sellers.

According to a Rand Youth Poll, young people have an estimated $45 to $65 billion to spend. 83% help shop for food. 88% help decide where to eat out. What impact will they have on grocery and restaurant markets?

• Substantial, because markets reflect consumers' wants in direct ways.
• Limited, since goods and services producers provide depend on resources available.
• Virtually no impact because most producers cater to an older market.
• Impossible to say, since we don’t know whom producers heed and whom they don’t.

Which of the following is MOST LIKELY to increase the demand for hybrid or electric automobiles?

• The price of hybrid and electric vehicles.
• The price of large gas guzzlers.
• Buyers' incomes.
• The price of gasoline.

Markets are considered to be perfectly competitive when...

• all sellers are charging roughly the same prices for similar products.
• there are so many sellers and buyers that none can affect prices.
• the equilibrium price is achieved and held.
• businesses are allowed to operate without government interference.

If the ticket lines for a Washington Nationals baseball game wound around the block and scalpers were getting $200 above the box office price, you could assume that...

• box office prices were running below equilibrium.
• there was an excess supply of tickets you could buy.
• the supply curve for tickets would probably shift to the right.
• the demand curve for tickets would shift to the left.