Froggy Jumps Price Efficiency QuizOnline version Test your knowledge about efficient, flexible, neutral and market-driven prices. by sarah ayyad 1 What are the characteristics of efficient prices? a Rigidity, bias, and government-controlled b Flexibility, neutrality, and market-driven c Inefficiency, subjectivity, and monopolistic 2 What is the main driver of prices in a market? a Supply and demand b Consumer preferences c Government regulations 3 What does it mean for prices to be neutral? a Not favoring any particular group or interest b Benefiting only the sellers c Being fixed and unchangeable 4 What is the advantage of flexible prices? a They create stability and predictability b They discourage competition c They allow for quick adjustments to changing market conditions 5 Which of the following is a characteristic of market-driven prices? a They are based on cost-plus pricing b They are determined by the interaction of buyers and sellers c They are set by the government 6 What is the opposite of market-driven prices? a Government-controlled prices b Consumer-driven prices c Fixed prices 7 What can cause inefficiency in prices? a Supply and demand b Competition and free markets c Market distortions and monopolies 8 What is the role of prices in resource allocation? a They guide resources to their most valued uses b They limit the availability of resources c They prioritize the needs of the wealthy 9 Why is price flexibility important in a dynamic market? a It benefits only the sellers b It allows for efficient allocation of resources and encourages competition c It ensures stability and predictability 10 What is the impact of biased prices? a They can lead to market distortions and unfair outcomes b They encourage innovation and growth c They promote competition and efficiency
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