Principles of Marketing Economics Test Who enacts laws and regulations when necessary in a private enterprise economy? a. consumers. b. providers. c. producers d. government. Customers are willing to pay top dollar for the new Playstation 3 game systems that are about to come out on the market. According to the law of supply, producers will be willing to produce ___________ systems in this situation. a. the same amount of b. fewer c. more d. no more Due to gas prices, Barry had to raise the price of his food products 15%. According to the law of demand, what will probably happen to the demand for his product? It will a. increase. b. decrease. c. stays the same. d. meet the equilibrium. Kroger is having a buy one get one free sale on ice cream this week. According to the law of demand, what will probably happen to the demand for ice cream? a. increases. b. decreases. c. stays the same. d. equilibrium. Mrs. Harris ordered 200 homecoming shirts; however there are 250 students who want the shirts. In economic terms there will be a ______________ of shirts. a. surplus. b. shortage. c. market price. d. market surplus. In Cuba, the government answers all three of the basic economic questions. This is an example of what type of economic system? a. socialism b. free economy c. capitalism d. communism The basic economic problem that all businesses have to face about not having enough resources is called: a. regulation. b. marketing. c. scarcity. d. economy. Kentucky Utilities is the only electric company that furnishes electricity to the people who live in the city limits of Somerset. This would be an example of a. pure competition b. market competition c. an oligopoly d. a monopoly Businesses that use their resources to develop products and services are called a. consumers. b. providers. c. producers. d. retailers. The point where the both the customer and the supplier are happy with the price is called a. a surplus. b. a shortage. c. the market price (equilibrium). d. the market surplus. In this type of economy the resources are owned by producers, producers produce because of the profit motive and individual customers decide what to buy: a. free enterprise economy. b. socialist economy. c. regulated economy. d. communist economy. The three basic economic questions all economic governmental systems must ask about the goods and services they will produce are: a. who, what ,when b. what, how, for whom c. who, how, where d. where, to, for Farmers selling pumpkins as competitors would be an example of what type of competition? a. an oligopoly b. a monopoly c. a private enterprise d. pure competition If there are no alternative products to satisfy consumers’ needs, a. the supply will be large. c. the price will be low. b. consumers will pay more. d. supply and demand are unaffected. In Sweden the government controls the key industries and there are many social services for the citizens. This is an example of a(n) a. free enterprise economy. b. socialist economy. c. regulated economy. d. communist economy. The Food and Drug Administration inspects and approves all foods and drugs that are produced new to the market. This would be an example of the government’s role as a a. provider of services. b. competitor. c. supporter of business. d. regulator. The United States Government establishes and maintains trade alliances with other countries so that our producers can sell their products to countries overseas. This is an example of government’s role as a a. provider of services. b. competitor. c. supporter of business. d. regulator. Joe has decided to get the faster Internet service at his business which speeds up the insurance claims process for his employees. This would be an example of a. the unemployment factor. b. jobless rate. c. gross domestic product. d. employee productivity. The governmental agency that protects damage to the environment by individuals and businesses is called the a. Small Business Association. b. Health Department. c. OSHA. d. Environmental Protection Agency. The federal government keeps track of 400 products and services periodically to check for rising prices across our nation. When they do this they are checking the a. gross domestic product. b. inflation rate. c. productivity. d. unemployment rate. When there is a high unemployment rate, the economy will tend to a. slow down. b. grow. c. stay the same. d. decrease then increase.