U1 AOS 2 Lesson 11 - Post Progress Check Flashcards
What is the definition of demand in economics?
Demand is the quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.
True or False: An increase in the price of a good typically leads to an increase in the quantity demanded.
False
Fill in the blank: The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded __________.
increases
Which of the following factors does NOT affect demand? A) Consumer preferences B) Price of related goods C) Production costs
C) Production costs
What is meant by ‘market demand’?
Market demand is the total quantity of a good or service that all consumers in a market are willing and able to purchase at different prices.
What is the primary role of price in resource allocation?
Price serves as a signal to both consumers and producers about the scarcity and value of resources.
True or False: Higher prices typically lead to an increase in the quantity supplied of a good.
True
Fill in the blank: In a market economy, prices are determined by the forces of ______ and ______.
supply; demand
What are the three basic economic questions every society must answer?
What to produce, how to produce, and for whom to produce.
True or False: Economic systems do not need to address the question of scarcity.
False
Fill in the blank: The question ‘how to produce?’ involves decisions about __________ and technology.
resources
Multiple choice: Which of the following is NOT one of the basic economic questions? A) What to produce B) How to produce C) When to produce D) For whom to produce
C) When to produce
Short answer: Why is answering the question ‘for whom to produce?’ important in economics?
It determines how goods and services are distributed among members of society.
