Terms and Concepts
1.How does the Government improve the operation of the market systems?: (a) by providing an appropriate legal and social framework and (b) by acting to maintain competition.
2.Refer to the diagram regarding equilibrium price and quantity. The equilibrium price and quantity in this market will be: $1.00 and 200
3.Basic determinants of demand are:: 1. consumers' tastes (preferences), 2. the number of buyers in the market; 3. consumers' incomes, 4. the prices of related goods, 5. consumer expectations
4.Regarding Federal Expenditures, what four areas of Federal spending stand out?: 1. pensions and income security; 2. national defense; 3. health; and 4. interest on the public debt
5.The basic determinants of supply are:: 1. Resource prices. 2. Technology. 3. taxes and subsidies. 4. prices of other goods. 5. producer expectations. 6. the number of sellers in the market
6.Three other types of income are:: 1. Some households own corporate stock and receive dividend incomes on their holdings. 2. Many households own bonds and savings accounts that yield interest income. 3. Some households receive rental income by providing building and natural resources (including land) to businesses and other individuals.
7.Why does the inverse relationship between price and quantity demanded exists?: 1. The law of demand is consistent with common sense. People ordinarily do buy more of a product at a low price than at a high price. 2. In any specific time period, each buyer of a product will derive less satisfaction (or benefit or utility) from each successive unit of the product consumed. 3. The law of demand can be explained in terms of income and substitution effects.
8.What percent of household income is consumed?: 86%. The rest is saved or paid in taxes.
9.A sole proprietorship: a business owned and operated by one person. Usually, the proprietor (owner) personally supervises its operation.
10.Change in supply is: a change in the schedule and a shift of the curve
11.Why
2.Refer to the diagram regarding equilibrium price and quantity. The equilibrium price and quantity in this market will be: $1.00 and 200
3.Basic determinants of demand are:: 1. consumers' tastes (preferences), 2. the number of buyers in the market; 3. consumers' incomes, 4. the prices of related goods, 5. consumer expectations
4.Regarding Federal Expenditures, what four areas of Federal spending stand out?: 1. pensions and income security; 2. national defense; 3. health; and 4. interest on the public debt
5.The basic determinants of supply are:: 1. Resource prices. 2. Technology. 3. taxes and subsidies. 4. prices of other goods. 5. producer expectations. 6. the number of sellers in the market
6.Three other types of income are:: 1. Some households own corporate stock and receive dividend incomes on their holdings. 2. Many households own bonds and savings accounts that yield interest income. 3. Some households receive rental income by providing building and natural resources (including land) to businesses and other individuals.
7.Why does the inverse relationship between price and quantity demanded exists?: 1. The law of demand is consistent with common sense. People ordinarily do buy more of a product at a low price than at a high price. 2. In any specific time period, each buyer of a product will derive less satisfaction (or benefit or utility) from each successive unit of the product consumed. 3. The law of demand can be explained in terms of income and substitution effects.
8.What percent of household income is consumed?: 86%. The rest is saved or paid in taxes.
9.A sole proprietorship: a business owned and operated by one person. Usually, the proprietor (owner) personally supervises its operation.
10.Change in supply is: a change in the schedule and a shift of the curve
11.Why