Functions of Markets (Grade 10 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
How many essential functions do markets perform to coordinate economic activity?
How many essential functions do markets perform to coordinate economic activity?
Three
What do markets provide that government-controlled economies do not?
What do markets provide that government-controlled economies do not?
Choice in economic decisions
In a government-controlled economy, who decides what prices should be charged?
In a government-controlled economy, who decides what prices should be charged?
Government officials
What do buyers naturally want when purchasing goods and services?
What do buyers naturally want when purchasing goods and services?
To pay the lowest possible prices
What role does competition between sellers play in markets?
What role does competition between sellers play in markets?
It keeps profit-making under control
What characterises a perfect market?
What characterises a perfect market?
Many suppliers and many buyers
What do markets tell producers through the price mechanism?
What do markets tell producers through the price mechanism?
What to make and how much
What do high prices signal in the economy?
What do high prices signal in the economy?
We need more of this product
What happens when producers set prices too high?
What happens when producers set prices too high?
Demand for the product drops
What happens to supply when prices drop too low?
What happens to supply when prices drop too low?
Supply decreases as it's unprofitable