1. It's better for consumers when there is a __________ of the goods they want to buy.
Shortage
Surplus
2. It's better for sellers when there is _________ of the goods they sell.
Shortage
Surplus
3. What does it mean to have a shortage of goods?
The price is too low for the sellers to make a profit.
There's more of the goods than people want to buy.
There's not enough of the goods that people want to buy.
The price is too high on the goods people want to buy.
4. What happens when there is a surplus of goods?
There's too little supply of goods so prices go up.
There's too little supply of goods so prices go down.
There's too much of the goods so prices go up.
There's too much of the goods so prices go down.
5. What happens when there is a shortage of goods?
There's too little supply of goods so prices go down.
There's too much of the goods so prices go up.
There's too little supply of goods so prices go up.
There's too much of the goods so prices go down.
6. The economy of the United States is often called ______________.
________________________________________
________________________________________
7. What happens when supply is greater than demand?
________________________________________
________________________________________
8. Prices encourage business people to make goods:
At the highest possible cost
At the lowest possible cost
At the highest efficiency possible
Both b and c are correct
None of the above