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  1. In the circular-flow diagram, which of the following items flows from households to firms through the markets for goods and services
    Dollars spent on goods and services
  2. In conducting their research, economist ofern substitute historical evens for
    laboratory experiments
  3. In the circular-flow diagram
    income of payments flow from firms to households and sales revenue flow from households to firms
  4. In economics capital refers to
    buildings and machines used in the production process
  5. Economist make use of assumption, some of which are unrealistic for the purpose of
    focusing their thinkinh
  6. economist build economic modles by
    making assumptions
  7. A competitive market is one in which there
    are so many buyers and sells that both have a impact on the price of product
  8. The principle of comparative advantage does not provide answers to certain questions.  One of those questions is
    What determines the price at which trade takes place?
  9. A market demand curve shows how the total quantity demanded of a good varies as
    price varies
  10. In markets, prices move toward equilibrium because of
    the actions of buyers and sellers
  11. When we move along a given supply curve
    all nonprice determinants of supply are held constant.
  12. Which of the following is a determinant of the market supply curve but not a determinant of an individual seller’s supply
    the number of sellers
  13. A decrease in the price of a good will
    decrease quantity supplied.
  14. If something happens to alter the quantity supplied at any given price, then
    the supply curve shifts
  15. If the price of a good is low
    the quantitlt supplied of the good could be zero
  16. In the circular-flow diagram,
    income paid to the factors of production flows from firms to households.
  17. The two loops in the circular-flow diagram represent
    inputs and output of flow od dollars
  18. Economic models
    incorporate simplifying assumptions that often contradict reality, but also help economists better understand reality.
  19. Which of the following is not a characteristic of a perfectly competitive market?
    sellers set the price
  20. Holding the nonprice determinants of supply constant, a change in price would
    result in a movement along a stationary supply curve.
  21. Each of the following is a determinant of demand except
Card Set:
2014-02-02 18:35:22
Mico eco

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