Card Set Information
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
In conducting their research, economist ofern substitute historical evens for
In the circular-flow diagram
income of payments flow from firms to households and sales revenue flow from households to firms
In economics capital refers to
buildings and machines used in the production process
Economist make use of assumption, some of which are unrealistic for the purpose of
focusing their thinkinh
economist build economic modles by
A competitive market is one in which there
are so many buyers and sells that both have a impact on the price of product
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?
A market demand curve shows how the total quantity demanded of a good varies as
In markets, prices move toward equilibrium because of
the actions of buyers and sellers
When we move along a given supply curve
all nonprice determinants of supply are held constant.
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
A decrease in the price of a good will
decrease quantity supplied.
If something happens to alter the quantity supplied at any given price, then
the supply curve shifts
If the price of a good is low
the quantitlt supplied of the good could be zero
In the circular-flow diagram,
income paid to the factors of production flows from firms to households.
The two loops in the circular-flow diagram represent
inputs and output of flow od dollars
incorporate simplifying assumptions that often contradict reality, but also help economists better understand reality.
Which of the following is not a characteristic of a perfectly competitive market?
sellers set the price
Holding the nonprice determinants of supply constant, a change in price would
result in a movement along a stationary supply curve.
Each of the following is a determinant of demand except