Competition
Sarah Cate and Talley are both trying to sell horseback riding lessons to the same market. This is an example of
a. supply and demand
b. scarcity
c. competition
scarcity
What is most likely to happen to the price of an item when its supply becomes scarce?
a. the producer will decrease the price of the item
b. the producer will increase the price of the item
c. the producer will not change the price at all
b. the producer will increase the price of the item
Which is an example of an entrepreneur?
a. a candidate that runs for office
b. an actor that stars in a popular movie
c. a person who opens a new restaurant
c. a person who opens a new restaurant
How do a large supply and low demand affect the price of a product?
a. The price will increase
b. The price will decrease
c. The price will stay the same.
b. the price will decrease
What is a revenue model that relies on advertisements being displayed on the product and collecting money from the advertisers?
a. direct
b. advertising
c. indirect
b. advertising
If several clothing stores open on the same street and sell the same products, what will most likely happen?
a. demand for these products will increase
b. prices for these products will increase
c. prices for these products will decrease
c. prices for these products will decrease
Which is an example of scarcity?
a. The supply of bread is less than the demand.
b. The demand for bread is less than the supply.
c. The supply and demand for bread are the same.
a. The supply of bread is less than the demand.
What is most important for an entrepreneur to consider when making a new product?
a. cost of raw materials
b. their logo
c. their instagram story
a. cost of raw materials
What determines the price of a product in a market economy?
a. government requirements
b. the number of consumers
c. supply and demand
c. supply and demand
What is a revenue model that relies on producers interacting with customers?
a. direct
b. indirect
c. advertising
a. direct
Why is competition important in a free market economy?
a. businesses make more money
b. people have lots of places to shop
c. prices are determined by supply and demand
c. prices are determined by supply and demand
Bad weather conditions cause damage to crops, resulting in a scarcity of fruits and vegetables. How will this affect consumers in a market economy?
a. Consumers will pay less for fruits and vegetables.
b. Consumers will pay more for fruits and vegetables.
c. Demand for fruits and vegetables will increase.
b. Consumers will pay more for fruits and vegetables.
What factors must an entrepreneur most consider when creating a new product?
a. cost of raw goods, labor, and marketing
b. costs of neighbor's goods
c. costs of an online platform
a. cost of raw goods, labor, and marketing
What happens to the price of a product when it is in high demand and the supply decreases?
a. the price also decreases
b. the price stays the same
c. the price increases
c. the price increases
What is a revenue model that gives a product away for free but charges for specific add-ons?
a. direct
b. freemium
c. fundraising
b. freemium
How does competition among sellers affect the price of goods?
a. sellers will sell lower-quality items at cheaper prices
b. sellers will reduce their prices to beat their competition
c. sellers will increase their prices to look better than their competition
b. sellers will reduce their prices to beat their competition
The main ingredient for soda is sugar, but there is a sugar shortage. How will soda manufacturers most likely respond?
a. increase the price of soda
b. increase the supply of soda
c. decrease the price of soda
a. increase the price of soda
How would you explain why North Carolina's government encourages entrepreneurs?
a. new businesses add money and jobs to the state's economy
b. new businesses drain resources from the state
c. entrepreneurs reduce productivity and demand for products
a. new businesses add money and jobs to the state's economy
Many people want to buy Silas's homemade pumpkin pie, but his supply is limited. What should he do?
a. decrease the price of his pie
b. increase the price of his pie
c. take his profits and close up shop
b. increase the price of his pie
What is a revenue model that relies on people donating money to a particular cause in order to sell a product, rather than establishing a set price?
a. freemium
b. direct
c. fundraising
c. fundraising
A store sells video games for $60. The store next door sells the same video games for $50 and has more customers. What should the first store do?
a. lower the price of video games to $50
b. increase prices to make more profit
c. sell lower-quality video games for a lower price
a. lower the price of video games to $50
In summer, strawberries cost $2 a pint. In winter, strawberries cost $4 a pint. Why?
a. supply and demand
b. scarcity
c. productivity
b. scarcity
A new business owner, located in a poor community in North Carolina, has a product that many people want to buy. How would the business most likely affect the economy of this region?
a. The business will improve the economy by building new schools.
b. The business will improve the economy by cleaning up local parks.
c. The business will improve the economy by creating new jobs in the community.
c. The business will improve the economy by creating new jobs in the community.
Why do many people stand in line for hours on Black Friday to get good deals on electronics and holiday gifts?
a. lower prices increase demand
b. higher prices increase demand
c. lower prices decrease demand
a. lower prices increase demand
What is a type of revenue model that relies on in-between groups, like grocery stores, in order to sell their product?
a. direct
b. indirect
c. freemium
b. indirect