Dynamics of the Market is one of 9 topics in the Grade 10 Economics CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. The satisfaction or benefit a consumer gains from consuming a good or service is called:
Utility
Exchange value
Price
Supply
Answer: Utility — Utility refers to the satisfaction or benefit a consumer gains from consumption, and is subjective, varying between people and between units consumed.
Easy
2. A market with many buyers and sellers, a homogeneous product, and perfect information, where no single participant can influence price, is called a:
Perfect market
Monopoly
Oligopoly
Black market
Answer: Perfect market — A perfect market is a theoretical market structure with many buyers and sellers, an identical product, freedom of entry/exit, and perfect information, so no single participant can influence the price.
Medium
3. What term describes any market that does not meet all the conditions of a perfect market, which describes most real-world markets?
Answer: An imperfect market — Imperfect markets fail to meet one or more conditions of a perfect market (such as having only a few sellers, or a differentiated product), and describe most markets encountered in the real world.
