Markets Test

Question 1

Define “Markets”

Answer 1

A place or situation where buyers and sellers of goods come together to trade and negotiate a price

Question 2

What % of Australia’s resources are allocated by markets?

Answer 2

80%

Question 3

What is Scalping?

Answer 3

When someone buys something and sells it for a higher price

Question 4

When someone buys something and sells it for a higher price it is known as?

Answer 4

Scalping

Question 5

3 motivations to use the black market

Answer 5

No GST
Cheaper
Goods may be boycotted

Question 6

What is demand?

Answer 6

The ability and willingness of the consumer to buy a good or service

Question 7

Contraction on demand curve means?

Answer 7

Price rises

Question 8

Expansion on demand curve means?

Answer 8

Price falls

Question 9

Any movement along demand curve is about?

Answer 9

Price

Question 10

Does price cause curve to move?

Answer 10

No

Question 11

What is money left over after taxes known as?

Answer 11

Disposable income

Question 12

What is disposable income?

Answer 12

Money left over after taxes

Question 13

A factor that affects position of demand curve

Answer 13

Changes in disposable income

Question 14

What is transfer income?

Answer 14

Income taken from government, from tax

Question 15

What are the factors of supply?

Answer 15

Cost of production, efficiency of resources, availability of resources

Question 16

What is Price mechanism?

Answer 16

How changing market conditions coordinate the way resources are allocated

Question 17

How changing market conditions coordinate the way resources are allocated is known as?

Answer 17

Price mechanism

Question 18

What is relative price?

Answer 18

The ratio that displays the price of one product to another

Question 19

The ratio that displays the price of one product to another is known as?

Answer 19

Relative price