SS Test

Question 1

Law of demand

Answer 1

Consumers buy more of a good when its price lowers

Question 2

Law of supply

Answer 2

The tendency of suppliers to offer more of a good at higher prices

Question 3

Excess demand

Answer 3

More people want the product than there is supply of the product
TS tickets

Question 4

Excess supply

Answer 4

When the supply of a product is greater than the demand

Question 5

20s cycle of growth

Answer 5

1. Demand for goods rises
2. Businesses raise production, so they need more workers
3. Workers are hired and earn money
4. Society goes out to spend money on leisure activities which helps the economy grow

Question 6

30s cycle of disaster

Answer 6

1. Demand for goods drop
2. Businesses cut production
3. Businesses don’t need workers so they suffer from wage cuts and layoffs
4. People had no money to spend so less people buy products. This leads to more production cuts.