Quiz 1

Question 1

define market

Answer 1

a market is a venue where buyers & sellers meet to facilitate exchange or transactions of goods & services.

Question 2

Markets can be physical or virtual; the prices of goods & services in a market is determined by ______________

Answer 2

supply & demand

Question 3

4 features of a market?

Answer 3

arena
buyers
sellers
commodity

(The 2 most important r sellers and buyers)

Question 4

arena

Answer 4

the platform where transactions r conducted between buyers & sellers (where they meet)

Question 5

buyers & sellers

Answer 5

the market can NOT exist if someone isn’t buying something that someone else is selling.

Question 6

commodity

Answer 6

a single market depends on a single commodity; a good sold for production or consumption

Question 7

define market ECONOMY

Answer 7

an economy that ALOCATES resources through the decentralized decisions of many firms & household as they interact in markets for goods & services.

Question 8

in a market economy, interactions between consumers & businesses determine what is ___________& at what _______

Answer 8

available
price

Question 9

characteristics of the market economy

Answer 9

individual r allowed to make a profit

Market players r free to produce, sell & purchase as they please, subject to government regulations.

the market is motivated by individuals trying to sell their offerings to the highest bidder; while attempting to pay the least for factors of production. (profit motive)

competition is present among producers, which keeps prices fair & ensures efficient production & supply

relevant information on which to base their decisions.

the government plays a limited role in a market economy but performs a regulatory function to ensure fair play.