MODULE 2 QUIZ

Which of the following statements about the interaction of demand and supply is true?

At prices below equilibrium, demand exceeds supply.

Which of the following is an example of a demographic factor?

a person's age.

In a mixed economy, the government is involved in the economic system through:

taxing, spending, and welfare activities.

Which one characteristic most clearly defines a market structure?

the number of suppliers in a market.

The GDP of Poland in 2006 was approximately $512 billion. This $512 billion represents:

the total value of all final goods and services produced in Poland during 2006.

The key element in socialism is:

governmental control.

Within the music industry, four companies (UMG, Sony-BMG, EMI, and Warner) control 90 percent of the music you hear. The music industry operates in a(n) ___ market structure.

oligopoly.

___ inflation is inflation that occurs when the demand for goods and services is greater than the supply.

Demand-Pull

In perfect competition, there is:

a large number of sellers producing nearly identical products.

The unemployment rate is the percentage of the total work force that is not working but is:

laid off, terminated, or downsized due to some economic activity outside of their control.