T/F We rely on others to produce most goods and services for us because we are bette of when we specialize in what we produce best and trade for other goods and services
True
T/F A market exists anywhere goods and services are bought and sold
True
T/F The demand curve shows how much a good a buyer actually purchases at a given price
false
T/F A market-demand curve can be found by adding, horizontally, the demand curves of all buyers in a given market
true
T/F There are no shortages or surpluses when the price of a good is equal to the equilibrium price
true
The goals of the principal participants in a market economy are to maximize
satisfaction for consumers, profits for business, and society's welfare for government
consumers:
receive goods and services form the product mark
In the U.S. economy, foreigners participate in
both the product and factor market
According to the law of demand, a demand curve
has negative slope
A movement along a supply curve is the same as
a change in the quantity supplied
A market is said to be in equilibrium when
the quantity is demanded equals the quantity supplied
In a market, the equilibrium price is determined by
both demand and supply
When demand increases the equilibrium will also increase because
a shortage exist at the old equilibrium price
A market shortage is
all of the above
A laissez-faire economic policy would advocate
markets without government interference
supply
what sellers are willing to sell
demand
what buyers are willing to buy
factor market
where factors of production are being bought and sold
product market
where finished goods are being bought and sold
An increase in demand cause the demand curve to do what
shift up and to the right
price ceiling
the most a product can be sold for
price floor
the lease amount a product can be sold for