Question: Which is shown by the intersection of the supply curve and the demand curve?

Answer: equilibrium price of a good or service

Question: Which accurately describes a shortage?

Answer: Consumer demand for a certain car is greater than the number of cars that can be produced.

Question: Which accurately describes a surplus?

Answer: Consumer demand for a certain car is below the number of cars that are produced.

Question: Which accurately describes the effect of a situation of scarcity?

Answer: There’s a shortage of oil, pushing car companies into researching alternative fuels.

Question: In which situation would the price of a good be most likely to increase?

Answer: An increase in production costs results from a rise in wages.

Question: When someone buys a fourth television for his or her house, what is the result?

Answer: decrease in the marginal utility of the television

Question: Which is a trait of public goods?

Answer: nonexcludability

Question: Which is not a factor that affects the level of wages?

Answer: gross domestic product

Question: Which limits the freedom of both employers and workers in the labor market?

Answer: existence of a minimum wage

Question: Which best explains how unions help workers get better wages?

Answer: The collective bargaining power of unions puts workers on a more equal level with employers.